First and foremost, there is a surplus of laid-off and or forced-out retirement senior talent individuals in the engineering, programming and other high tech fields of research & development with the needed skills to fill all of the American labor market needs and more!. But, they are not coming back on the” cheap side” at H-1b visa prices and conditions. For the employers, this is great; they can use the h-1b visa and other less known government programs & gimmick loopholes to bring in foreign cheap labor and thus … reduce their labor cost by almost 70%. The second benefit is that after ten years of this USA practice, the employers/industry has succeeded in lowering the value of being an employee engineer, scientist, programmer etc.and there is no more job security in these fields to protect them.
Effectively, we fired the American worker and replaced him/her with much cheaper foreign workers; just as we replace American goods with cheaper foreign goods, ie China. There is enough laid off, force out and forced-retirement talented-American individuals who are ready and willing to work at their previous or similar levels; but not at the cheap h-1b visa levels. The medical and legal industries are also looking for ability to milk the h-1b visa program.
Executive compensation skyrockets at the expense of replacing American labor with cheap foreign labor. In the fortune 1000 companies, it is absolutely about reducing the cost of labor by the process of … getting rid of good American expensive labor, declare a “shortage of needed people available”, and then move forward to bring in good young foreign labor at very low prices with promises of incremental increases for performance over long time periods. The strategy also stops the progressive salary and compensation increases of current workers and new hires; a technique that has put a damper on rising salaries as well as a cap on the value of American engineers and other technical workers. Since 1978, hiring cheap overseas talent and the use of the later h-1b visa programs and their equivalent programs have reduce average yearly cost of hiring the skilled technical and engineering talents by 68%. The value of being an engineer, scientist etc in America today is pretty much reduced being a used car salesperson at Burger King.
The American job market is flooded with engineers, programmers etc at the now value of a dime-a-dozen; those who have been or currently being replaced by foreign workers. The medical and science fields are other targeted groups, as the giant companies, hospitals etc of the medical industry etc look to bring in h-1b visa cheap international talent to reduce their labor cost by laying off or forcing talent to retire..