Tech Employers Continue to Prefer Cheap Foreign Labor

Newspaper Job SearchIn news that surprises no one, U.S. Citizenship and Immigration Services (USCIS) announced today that it has reached the H-1B cap for FY 2017. Because USCIS has received more applications than the 65,000 H-1B cap set by Congress, the agency will utilize a lottery to determine which employers get the foreign workers—most likely for science, technology, engineering, and mathematics (STEM) jobs. Predictably, tech companies will point to the cap being exceeded in less than a week (application period started April 1) to claim there is a shortage of STEM workers and demand Congress increase the cap.

The facts say otherwise. In reality, wages for tech workers have been stagnant for years while company profits have soared in part because there is a glut of tech workers. Additionally, tech companies laid off thousands of qualified American workers last year. Yet, instead of hiring (or rehiring) these workers the tech companies submit hundreds (if not thousands) of H-1B petitions. The reason: H-1B workers are cheaper and tied to the sponsoring employer. While the list of companies that submitted H-1B petitions has not yet been released, it is a near certainty that companies like Disney, Southern California Edison, and others who gutted their American tech workforce in the last 12 months have applied for the foreign workers.

The worst thing is, these companies are legally doing this because the H-1B law was written to allow tech companies to favor cheap foreign labor of equally (or more) qualified American STEM workers.

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Content written by Federation for American Immigration Reform staff.


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  2. avatar

    Let’s Get Something Straight for Once

    Computer programming is a high school level job Microsoft. Engineering colleges don’t teach your skill, its all essentially on the job training. You don’t need cheap foreigners producing garbage O/Ss like VISTA [Windows 10 too?], hire American high school kids for more money and eliminate the weekly patches and virus S/W…like Windows 95 and 98 did…..with mostly American high school students BTW.

  3. avatar

    There is such a ‘loophole’ in the H-1B regulations that it is easy for the big companies to get H-1B labor as virtual slave labor. They don’t technically hire H-1B’s in most cases. They contract with companies who provide H-1B labor. Thus, the H-1B visa holders are not technically working for the company, but the Americans who previously had the jobs are out of work and the foreigners are doing the work for half price or less. And the owners/management of the companies who do this, like Disney and Facebook, love it because the benefits go straight into their bank accounts.

  4. avatar
    Diane anglin on

    Tech companies who claim they can’t find qualified Americans should have to agree to train replacements for any green card people they hire and the green card employee must be sent home after the american replacement is trained for the job. This would stop phony hiring of green card people by companies that falsly claim the can’t find qualified american workers as well as provide training for citizens when there is a legitimate need.

    • avatar

      IF that were the case and you apply it int he last50 years… would be living in a 3rd World country……but then they should do that same for people that came here….which brings you in to the equation so that you pack up and leave and go back wherever it is you came from… be fair… my ancestors there is no need….they came here in the 1600,s and gave you this place…so I am to stay……think like an American….not like a facist ….

        • avatar

          Leland I do not complain, I just pointed the finger at you being the nasty monkey in doing so…..

        • avatar

          Leland I said think freely not like a fascist…..if you understood English you would realize I call fascist her opinion and way of thinking on this matter not her…..but in your case…you are a fascist……read the definition in Google….you fit like a shoe!!!

  5. avatar

    The big tech companies, being the big propagandists they are, always claim that American STEM graduates “have a low unemployment rate”, therefore there is a tech worker “shortage”. Technically they’re right, but college grads in general have low unemployment rates, but that does not mean they are working in their fields.

    You can listen to Zuckerberg, Gates and all the rest of the shills, or you can listen to the Census Bureau. On July 10, 2014, they released this [release number CB 14 – 130] on

    “The US Census Bureau reported today that 74 percent of those who have a bachelor’s degree in science, technology, engineering and math – commonly referred to as STEM – are not employed in STEM occupations.”

    Believe them or believe the self serving modern day robber barons heading the tech companies.