Immigration Reform and the Economic Imperative

The Immigration, Refugees and Border Security Subcommittee of the Senate Judiciary Committee, chaired by Senator Charles Schumer, held a hearing on July 26, 2011, to discuss "The Economic Imperative for Enacting Immigration Reform." The hearing featured testimonies from experts in various fields, including technology, education, and government.

The hearing highlighted the need for comprehensive immigration reform that addresses the challenges faced by high-skilled workers and the high-tech industry. Senator Jeff Sessions (R-AL) suggested implementing a points-based system, similar to Canada's, which prioritizes education, skills, and youth. However, Microsoft's General Counsel and Senior Vice President, Brad Smith, expressed concerns about a points-based system, citing its potential to micromanage the labor market and create bureaucratic challenges.

The hearing also touched on the issue of H-1B visas and the impact of foreign labor on the U.S. job market. Senator Sessions argued that H-1B employees are often paid lower salaries than their U.S. counterparts, and that the use of cheaper foreign labor has forced down hourly rates of U.S. consultants. Microsoft's Brad Smith acknowledged these concerns, but emphasized that the primary reason for the salary disadvantage is the difficulty for H-1B visa holders to take another job due to their position at the back of the green card queue.

Key Takeaways:

The hearing highlighted the need for comprehensive immigration reform that addresses the challenges faced by high-skilled workers and the high-tech industry.
Senator Jeff Sessions suggested implementing a points-based system, similar to Canada's, which prioritizes education, skills, and youth.
Microsoft's Brad Smith expressed concerns about a points-based system, citing its potential to micromanage the labor market and create bureaucratic challenges.
The hearing touched on the issue of H-1B visas and the impact of foreign labor on the U.S. job market.
Major concerns were raised about H-1B employees being paid lower salaries compared to their U.S. counterparts.
Senator Sessions and Microsoft's Brad Smith agreed that reforming the current system to prioritize high-skilled workers is a potential solution.

Statistics:

A 2001 National Research Council report found that H-1B workers requiring lower levels of high-tech skill received lower wages.
The Independent Computer Consultants Association in 2003 reported that the use of cheaper foreign labor has forced down hourly rates of U.S. consultants by as much as 10-40 percent.
Senator Sessions mentioned that a report by the INS a few years ago stated that H-1B employees are paid a median salary 25 percent less than the national median for their field.

Sources:

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