The H-1B Visa Program and Its Impact on the U.S. Economy Published: August 1, 2024 Topics: Business and the Workforce, High Skilled Labor Download PDF --- Overview The H-1B visa category allows U.S. employers to hire highly skilled foreign workers in specialty occupations requiring at least a bachelor's degree or equivalent. Common fields include science, technology, engineering, mathematics (STEM), and medical sciences. Initial visa duration is 3 years, extendable up to 6 years. Employers must attest that hiring H-1B workers does not adversely affect wages or working conditions of U.S. workers (via a Department of Labor certified labor condition application). U.S. employers must notify current employees about their intention to hire H-1B workers. There is an annual cap of 65,000 visas, plus 20,000 additional visas for foreign graduates from U.S. master's or doctoral programs. Demand regularly exceeds supply; for example, FY 2023 cap was reached on August 23, 2022. --- Application and Denials In March 2020, USCIS instituted a registration process requiring employers to register candidates electronically before submitting full petitions. Registration involves a $10 fee per foreign national. If registrations exceed visa numbers, USCIS runs a lottery to select petitioners. FY 2024 saw 780,884 registrations, with 758,994 deemed eligible. Concerns have been raised about system abuse due to multiple registrations filed on behalf of the same person. Denial rates for initial petitions swung from 6% in FY 2015 to a peak of 24% in FY 2018, gradually lowering to a record low of 2% in FY 2022. Continuing employment denials remain low at ~2% in recent years. Number of H-1B admissions dropped sharply in 2020 due to pandemic-related visa restrictions during the Trump administration, reaching a low of 148,603 in FY 2021, but rebounded to 410,195 in FY 2022. --- Economic Impact Immigrant workers complement native-born workers by filling different job roles, expanding labor market opportunities. H-1B workers' spending and investment boost consumer demand and job creation. Presence of H-1B workers encourages U.S. businesses to expand domestically. Immigrants contribute substantially to entrepreneurship and innovation. Studies show increased H-1B presence correlates with lower unemployment in specialized occupations. Restrictions on H-1B visas cause U.S. corporations to reduce domestic job openings and increase foreign affiliates, especially in India, China, and Canada. Higher H-1B approval rates associate positively with more patents, venture capital funding, and successful startups. Wages for H-1B workers are high compared to U.S. averages: median wage was $108,000 in 2021 versus $45,760 for U.S. workers overall. Wage growth for H-1B workers has outpaced that of native workers over 2003–2021 (52% vs 39% increase). 78% of H-1B employers paid above the Department of Labor’s prevailing wage in FY 2019. --- Geographic Distribution Largest numbers of H-1B petitioners from FY 2017 to FY 2022: New York City metropolitan area: 372,100 (15.2%) San Jose, CA: 215,700 San Francisco, CA: 165,000 Dallas, TX: 150,200 --- Role in National Emergencies H-1B workers contributed significantly to efforts during the COVID-19 pandemic. Between FY 2010 and FY 2019, eight key vaccine-developing companies hired 3,310 scientists through the H-1B program. Many frontline medical doctors during the pandemic held H-1B status. --- Summary The H-1B visa program is integral to maintaining a competitive U.S. economy by filling critical labor shortages in high-skill sectors. The program helps generate jobs, foster innovation, and supports economic growth nationwide, despite challenges such as visa caps and past