Low annual limit of 85,000 H-1B visas hitting US employers hard, says study

US H-1B visas: A new report has noted that US employers are facing trouble securing foreign talent owing to the low annual limit of 85,000 registrations for H-1B petitions. H-1B visas are offered to professionals who are offered a temporary professional position by a US employer. The H-1B is issued under the Immigration and Nationality Act.    

According to the study titled, H1B Petitions And Denial Rates In FY 2022, compiled by National Foundation for American Policy (NFAP), a nonpartisan research organisation, the low annual limit on H-1B petitions resulted in the vast majority of H-1B registrations not being selected.  

The H-1B visa allocations are capped at 85,000 visas per year, with 20,000 of those set aside for workers holding advanced degrees from the US institutions. The remaining 65,000 visas are awarded through a lottery system, making the competition for H-1B visas fierce. 

The H-1B is an employer-sponsored non-immigrant classification, which means that the employer must apply for the H-1B on behalf of the prospective H-1B employee through the United States Citizenship and Immigration Services. Tech companies depend on this visa to hire thousands of talent each year from countries like India and China. 

The report stated that the H-1B denial rates have returned to low levels. “Despite the end of the Trump administration's restrictive immigration policies that made US companies less competitive in the global battle for talent, companies in America still must deal with the low annual limit on H-1B petitions and employment-based green cards,” said Stuart Anderson, NFAP's executive director. 

In April 2022, USCIS said that US employers submitted over 483,000 H-1B registrations, almost 400,000 more than the 85,000-annual limit for H-1B petitions. 

The NFAP said that the H-1B temporary visas are important because they generally represent the only practical way for a high-skilled foreign national, including an international student, to work long-term in the US and it gives an opportunity to become an employment-based immigrant and a US citizen. 

In 2022, NFAP said that 55 per cent of US-based startups, valued at $1 billion or more, have at least one immigrant founder, stressing the importance and contributions of immigrants to the US economy, and why H-1B temporary visas are crucial for the growth. 

The denial rate for new H-1B petitions for initial employment in FY 2022 was 2 per cent. The H-1B denial rate declined during the final year of the Trump administration after judges declared many of its H-1B-related actions unlawful, it said. 

(With agency inputs)