Dash for US high tech visas ends early

The US Citizenship and Immigration Service has received more than 150,000 applications for H-1B visas on the first day of the 2008 filing period on Monday. 

The number of permits is capped at 65,000 annually. Another 20,000 are set aside for foreign students who graduate from US colleges.

The immigration service will not consider any applications received on or after 4 April, and plans to make a random selection of the qualifying applications before that date.

Employers can request H-1B visas for new employees with a bachelor's degree, provided that certain guidelines are met that intend to protect US workers from the import of cheap labour. The permits are commonly used by high tech companies.

This year is the first time that the authorities met the H-1B cap on the first day of the new filing period. Last year it took two months before all the permits were taken up.

The number of permits is controlled by the US government and fluctuates heavily based on the economic and political climate.

After President Clinton imposed a temporary increase in the number of H-1Bs during the dotcom boom, the Bush administration in 2004 allowed the number to slip back to 90,000.

Employee trade groups have opposed increases in the number of H-1Bs, because they fear that the permits are used to replace American workers with cheap labour from abroad.

The limited number has given rise to the 'H-1B refugee'. Multinational technology companies continue to hire foreign workers with the intention of moving them to the US under an H-1B visa as soon as a new batch becomes available. In the meantime they are asked to work in their native country.

Allowing denied H-1B applicants one year to spill over into next year's pool causes a further increase in next year's number of applications.

Microsoft chairman Bill Gates pleaded for an unlimited number of H-1B visas in a testimony before the US Senate last month.  

Foreign talent denied the opportunity to work in the US will apply their skills in other regions. This could undermine America's technology leadership, Gates argued.