Concerns Over Immigration and Labor Market

Despite two decades of substantial immigration, there are still millions of foreign students and visa workers entering the labor market. It’s puzzling—does this nation really require more foreign labor?

Recently, US Citizenship and Immigration Services shared that 120,141 H-1B visa applicants were selected in the random lottery for 2026. This number is slightly lower compared to the Biden administration but continues a long-standing trend.

The focus is supposedly on prioritizing American workers. But how much of that holds true?

The Shrinking Employment Market

Approximately 1.5 million foreign white-collar workers operate in various visa categories, including H-1B, L-1, and J-1, among others. This figure does not even account for over a million foreign students or those receiving birthright citizenship.

How many new H-1B visas should be issued next year? Ideally, it seems none.

If a lack of skilled labor was truly an issue, wouldn’t wages be seeing an increase? Shouldn’t my entry-level salary go up?

The situation in India, especially in tech and healthcare, serves to suppress wages rather than genuinely fill labor gaps. American companies are laying off employees while appealing for more foreign workers, which exposes a contradiction.

In September, the Wall Street Journal highlighted the struggles of young tech professionals.

With companies pushing hard for talent, competition has become fierce for the few available positions. It marks a significant shift for many who’ve long taken job security for granted.

In fact, recruitment for software developers has plummeted by over 30% since early 2020. Layoffs have persisted this year, totaling around 137,000 jobs lost since January. Many young professionals are getting their first taste of a contracting job market.

Yet, the presence of foreign workers remains prominent.

If there really was a shortage of skilled labor, one might expect wages to rise, right? Isn’t that how it should work?

Actually, the opposite is occurring. According to a recent journal report, median salaries for software engineers, product designers, and technology managers have dropped by 1% to 2%. It seems the industry is being upheld by a system that undervalues labor, particularly through the H-1B program.

The wage disparity between job switchers and those who stay has nearly vanished, further complicated by a labor market rife with artificially lowered wages and dependent foreign workers. The benefits that once existed have, well, almost vanished, leaving wage increases non-existent.

Companies Win, Workers Lose

Legally, H-1B employers are supposed to pay competitive wages, but enforcement is largely ineffective.

As found by the Center for Immigration Studies, the average promised salary for new H-1B workers in tech is 25.2% lower than that of U.S. software developers.

And what happened to the notion that these individuals represent the “best and brightest”? Surprisingly, high-tech H-1B workers are 41% less represented in the 75th percentile and 53% shy in the 90th percentile compared to American counterparts.

The truth is stark: this scenario revolves around corporate access to affordable, compliant labor.

Trump’s Role

So, what’s keeping American tech workers from finding jobs even while the Trump administration expands the H-1B program?

Though the courts have limited the ability to remove those already in the country, precedent suggests the President has the authority under immigration laws to regulate entry and exit of foreigners.

Congress can set limits, yet the president can halt the program altogether for national interest, similar to actions taken with the refugee program in his first term.

There are quick reforms Trump could implement:

• **End the random lottery**: Choose applicants based on the best offers. If the goal is truly skilled labor, make the process transparent.
• **Blacklist diploma mills**: Ban visa applications from unauthorized agencies.
• **Stop companies that fire Americans from hiring**: Organizations that lay off U.S. workers shouldn’t be allowed to replace them with foreigners.
• **Terminate OPT**: This program lets companies hire foreign students tax-free for entry-level roles, and it could be ended swiftly.
• **Limit foreign workers to 10% per company**: No organization should replace Americans entirely with foreign labor.

Trump initially targeted visa misuse during his first term, but those initiatives were quickly repealed under Biden.

Now that Trump is re-entering the scene, one has to wonder: what happened to the promise of prioritizing American workers?