Individuals holding an H-1B visa working in U.S. technology-related roles is at the lowest point in a decade. Predominantly due to U.S. travel and visa restrictions, this is the second fiscal year of an annual drop for this segment of workers. Data is from the U.S. Department of Labor using their labor classifications. In total, a drop of nearly 13% was seen for foreign-born individuals working in engineering and mathematics for the fiscal year 2021 for the U.S. government. From the Department of State, a comprehensive analysis of all visas is available.

Foreign-born civilian labor accounted for 17% of the total for 2020, down from 17.4 in 2019. Overall, the total labor force dropped by 2.8 million, with 1.1 million of those being foreign-born, or 38% of the total.

While many U.S. visa processing locations have reopened, they are doing so at a slower pace. There is a considerable backlog of processing visa applications which resulted in unused visa numbers in several categories. As such, visa recapture is included in the proposed Build Back Better Act, currently in the Senate. Changes are expected to be made for the Act, however, it is uncertain if those changes will affect the proposed immigration benefits.

Currently, demand for technology-related roles far outpaces available U.S. supply. As such, the demand for H-1B visa holders continues to grow. Across the board, the U.S. is experiencing labor shortages. Since the IT industry has been especially impacted, employers should plan ahead in order to fulfill their staffing needs. The next H-1B cap will occur in March 2022. As in the years past, there will be a three-week registration period immediately followed by a selection period. A recent court decision ensured that the next H-1B cap will again be a lottery, which is good news. Employers who rely on H-1B visas to fill their staffing needs should strategize early to take advantage of the next lottery, particularly since the future of the program is uncertain and a wage-based system may be enacted.

If you have questions about an H-1B program, new or existing, to fill your company roles, contact us at ILBSG. We put our expertise to work for you to ensure you get the right advice.

h-1b Immigration and COVID