NEWS CONTACTS: Scot Montrey (202) 637-3099 Sandy Boyd (202) 637-3133 FOR IMMEDIATE RELEASE September 16, 2003

ABLI RELEASES STATEMENT ON H1-B VISA HEARING

Boyd Notes Program Usage is Down, but Option Remains Important

Washington, D.C., September 16, 2003 - The American for Business Legal Immigration Coalition today commended Senator Hatch and the Senate Judiciary Committee for holding a hearing to examine the importance of the H1-B visa to the U.S. economy and to examine the facts about the program and its use.

ABLI Chair and NAM Vice President for Human Resources Policy Sandra Boyd pointed to the recently issued U.S. Department of Homeland Security report entitled "Characteristics of Specialty Occupation Workers (H1-B): Fiscal Year 2002" as evidence that employer use of the H1-B program has clearly tracked the dynamics of the economy.

"The H-1B program continues to be an important vehicle for companies to hire limited numbers of highly educated professionals for specialized jobs," Boyd said. "But there is no doubt that usage of the program is way down." In particular, she noted that:

• Overall usage has declined dramatically. Petitions for initial employment decreased by 48 percent in FY 2002.

• Usage of the H1-B program by industry tracks economic conditions. Petitions filed on behalf of high-tech industry segments declined 62 percent in FY 2002. The number of H1-B petitions approved for workers in computer-related occupations declined by 61 percent. While still the most numerous occupation group, total petitions approved for computer-related occupations dropped sharply from 58 percent in FY 2001 to 38 percent in FY2002.

• Demand was down in every occupational group with the exception of education, medicine and health and life sciences where demand increased in FY 2002 by 19, 14 and 7 percent respectively.

• The educational level was slightly higher in 2002 than 2001 with 47 percent of H1-B's having a Masters degree or above.

• The median annual compensation (which excludes non-cash compensation and benefits) for all H-1B workers in FY 2002 was $53,174. By comparison, according to BLS, the median wage for workers in all occupations in the U.S. in 2001 (the last year available) was $27,060.80.

Despite rhetoric to the contrary, the recent homeland security report demonstrates that there is a relationship between economic conditions and usage of the H1-B program-no matter what the numerical cap limit. In addition, while the program was widely viewed as a "high tech" program in the 1990's, recent data reflects that the actual usage (by occupation and industry) changes as economic conditions shift. Moreover, the report demonstrates that H1-B holders are well-educated and well-compensated.

While the report answers many questions, there are many missing data points. The report does not indicate how many employers use the program. In addition, the report does not indicate whether employers are recruiting H1-B visa holders in the U.S. or abroad and where H1-B visa holders attained their education. In many disciplines at U.S. universities, particularly in math, science and engineering and especially at the graduate level, there is a large contingency of foreign students who U.S. companies hire through routine recruiting.

"Foreign nationals have made enormous contributions to U.S. companies and our economy," Boyd said. "In order to continue our economic leadership we need to ensure that we have access to the talent we need to lead and compete. Educating and protecting American workers and welcoming foreign talent are not mutually exclusive; in fact, they are among our country's best traditions."

American Business for Legal Immigration is a coalition of associations and companies concerned about legal, employment-based immigration.

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