US economy today vs. skilled immigrants

US senate’s move to restrict employment of foreign skilled workers to save American jobs for Americans will retard further the US economy. Such restrictions apply obviously to corporations receiving financial aid package for survival as they have to follow the directives. They cannot bring in foreign skilled workers using H1B visa but have to appoint Americans whether they meet the essential skills and aptitude norms for the jobs. Information technology sector also uses such visas to bring in highly skilled foreign workers - many from India who are from very renowned Indian universities. US senate envisages that American businesses can not hire H1B visa holders if they fire American employees.

Foreign workers who come on H1B visa are allowed to work in America for a maximum period of 3 years, extendable by another 3 years for extremely deserving candidates who contribute a lot in their American assignment to help the country prosper. President Obama appears to be focused on reducing the expenses to improve profitability. But such restrictions are obvious roadblocks for the success of his plans. Why? These H1B visa holders who come to America to work are highly skilled, educated and cannot be compared with most of the Americans losing their jobs. For the work they do here using their skills and higher education they posses from best universities, equivalent American workers are very much more expensive. Businesses can not afford to hire those expensive Americans to keep them (businesses) competitive in the market place, especially when the world has become a global village. Question is whether to run the business viably making profit (or at least avoid going red at the moment) hiring H1B visa holders or employ very expensive American workers (or compromise on their qualities and pre-requisites and pay less)!

Also important to know that such highly skilled foreign workers who the American employers hire at a lower wage are experts in their fields and not too scared if America closes its door on them. They will continue to be in demand all over. Even if they continue to remain in their countries, like India, China etc., American employers will continue to utilize their services by opening facilities in countries these professionals flock around. Relocation of some facilities from America to these countries may also result. Outlook of US economy is extremely uncertain. No one in the leadership is appearing to have the firm and confident idea of how to steer. Many feel that despite a significant fiscal stimulus package the American GDP is not likely to be of any encouragement in 2009. Slimmed-down stimulus plan worth about $780bn is not viewed with lots of optimism. Controversial ‘Buy American’ provisions may lose its importance eventually when it gets to implementation stage. Trading partners are not to be discarded at the cost of controversial concepts. Under such frenzied state of affairs there can be many more scenarios which I leave for my next blog.

Spiralling deeper into recession, some concrete and effective steps have to be thought and worked out quickly. So, is it time to think by people who can really think (but just not to decide for the sake of it) and open up to put the country back into forward gears?

Come on quick, there is not enough time to think but act. After all the world is changing fast!