H-1B Visa Applications Surge Nine Times Past Cap Exposing a System Overrun With Unchecked Misuse

Robert Sterling, an investor, published an in-depth analysis on his social media account on Saturday of five years of H-1B visa application data, highlighting significant trends and raising concerns about the program’s purpose and execution. Sterling’s findings challenge the H-1B program’s image by some as a gateway for the “best and brightest.” Instead, they depict the process as a tool for hiring mid-tier, lower-cost foreign labor, particularly in IT and financial services.

His key findings about H-1B Visas include:

Massive Popularity: The program is heavily utilized, with over 800,000 applications annually, despite a statutory cap of 85,000 visas per year, exposing that the number of applications for H-1B Visas is approximately 9.41 times greater than the statutory cap.

Low Average Salaries: The average H-1B salary is under $120,000, with 75% of jobs paying below $150,000. This contradicts the perception that the program targets elite, high-earning talent.

STEM and IT Dominance: Most applications are for STEM roles, particularly in IT, with software developers and systems analysts being the top categories.

Indian IT Firms’ Dominance: Companies like Cognizant, Infosys, and Tata Consultancy dominate applications, seemingly placing foreign workers as contractors in the U.S. rather than filling domestic talent shortages.
Concentration by Industry: The computer systems design industry accounts for over 1.2 million applications. Big accounting firms like EY and financial firms like Goldman Sachs also use the program for roles that could be filled domestically.

Market Discrepancy: Salaries for H-1B roles (often $80,000–$120,000) appear below market rates for comparable jobs in the U.S., suggesting potential cost-cutting motivations.

Analysis:

Sterling’s report highlights several concerns regarding the H-1B visa program. One of the key issues is that employers are increasingly using the program to reduce costs rather than addressing genuine talent shortages. Opponents of the program argue that this practice can result in depressed wages and fewer opportunities for domestic workers, particularly in industries that rely heavily on foreign labor.

The Sterling report identifies structural issues within the program, particularly the dominance of outsourcing firms. These firms use the program to place contractors in roles rather than hiring employees directly for in-house positions. Additionally, the large volume of applications compared to the statutory cap indicates inefficiencies within the system and creates opportunities for misuse, undermining the program’s original purpose.

Sterling suggests that policymakers consider implementing salary thresholds, enforcing stricter role-specific needs, and capping the number of applications from outsourcing firms. These measures would help ensure fair competition and protect opportunities for domestic workers.