Skills Shortage
But Google still has more than 1,000 positions available, many in engineering, where skilled workers are already in short supply. A significant portion of these openings probably would have been filled by skilled overseas workers. That&'s would have been filled, but the annual quota of H1-B visas, issued by the U.S. government to educated foreign professionals with specialized skills, has already been met. Not just for 2005, but for 2006 as well.
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JOHN ROBERTS \ Can be reached via e-mail at jorobert@cmp.com. |
As a result, technology companies almost certainly will face growing skilled labor shortages next year. Ironically, it also means that skilled foreigners who have graduated from U.S. universities and could work for U.S. companies will be instead sent home, perhaps to work for competing firms. The quota was increased significantly between 1998 and 2001, mainly due to the technology boom. It was then cut sharply in 2004 in response to a softening economy and the collapse of the technology bubble. But with technology now moving full steam ahead, the Google case illustrates the need for quotas to once again be significantly increased.
Some in Congress have recognized the situation. But a recent Senate move to up the quota by 30,000 was rejected by the House, and the issue is now getting bogged down in politics. And with 2006 an election year, the likelihood of any immediate action becomes more remote. As a result, the technology industry could pay a high price as the growing shortage of skilled labor squeezes revenue and profit growth.
What do you think of the H1-B visa situation? Contact me via e-mail at jorobert@cmp.com.
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