Trump H-1B Horror: Massive job cuts on the way?
This huge increase may stop many companies from hiring foreign workers. According to JPMorgan, this could reduce around 5,500 new work approvals every month.;
The Donald Trump administration in the United States has started to crack down on the immigration population and they are now starting to hit at the financial streams of the immigrants. In this context, Trump communicated the new plan to impose $100K fee for H-1B aspirants henceforth.
In this context, JP Morgan economists have warned that the new U.S. plan to increase H-1B visa fees could cause serious problems for jobs. The proposed rule suggests raising the cost of a new H-1B application from $10,000 to $100,000.
This huge increase may stop many companies from hiring foreign workers. According to JPMorgan, this could reduce around 5,500 new work approvals every month.
The H-1B program is very important for the U.S. tech industry. Almost two-thirds of all H-1B approvals are for computer and technology jobs. A large share of these visas, about 71%, go to Indian professionals.
If the new fee is approved, Indian workers will be the most affected. Critics believe this move could cost the U.S. economy up to 140,000 jobs every year.
Supporters of the fee say it might help control the number of foreign workers. But experts fear it could push companies to move jobs outside the U.S. or reduce hiring skilled talent.
The new fee would only apply to fresh applications, not to renewals. Still, many businesses are worried that it will weaken America’s tech competitiveness and reduce opportunities for talented workers worldwide.