[Congressional Record Volume 144, Number 37 (Friday, March 27, 1998)]
[Senate]
[Pages S2715-S2718]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SERIOUS PROBLEMS FACING THE HIGH TECH INDUSTRY
Mr. ABRAHAM. Mr. President, it's painfully obvious that the nation
faces a serious problem in providing our companies with the skilled
workers they need to grow and create jobs in America. We do not need a
report to tell us there's a problem. All one needs to look at are the
job ads in newspapers and on the Internet which are
[[Page S2716]]
exploding with offers of high tech jobs that cannot be filled. There
are even reported shortages of the recruiters needed to recruit other
skilled workers.
There is ample evidence that companies face an inability to fill key
skilled positions. The Federal Reserve's latest survey of nationwide
economic conditions made public on March 19 stated ``shortages of both
skilled and entry-level workers worsened.''
The unemployment rate among electrical engineers nationwide is 0.4
percent. Congressional testimony shows that leading American companies
like Microsoft and Sun Microsystems have over 2,000 unfilled positions
each. CEOS of companies like Dell Computers and Texas Instruments warn
that America's global leadership in high technology fields will be
threatened if this problem is not addressed. ``We are disarming the
economy of the United States if we don't allow skilled workers to come
in,'' explained Dell Computer Corp. CEO Michael Dell.
Companies are so desperate for workers they are even hiring teenagers
part-time at $50,000 a year, as The Washington Post reported in a March
1st front-page article. The National Software Alliance, a consortium of
concerned government, industry, and academic leaders that includes the
U.S. Army, Navy, and Air Force has warned that the current severe
understaffing could lead to inflation and lower productivity and
threaten America's competitiveness.
And in the last two years, difficulties finding workers, economic
growth and the globalization of business has led to a dramatic increase
in the use of H-1B visas for skilled foreign-born professionals. The
situation has changed so swiftly that the allotment of these visas will
be exhausted an astounding four to five months before the end of this
fiscal year.
The recent General Accounting Office report is little more than an
inside-the-beltway squabble over how to measure shortages that ignores
the real marketplace. The GAO report focused on one study by the
Commerce Department, a study that was not even raised by witnesses at a
recent Senate Judiciary Committee hearing on H-1B visas. In turn, the
Commerce Department has responded by criticizing GAO for doing a report
that ``contains several inaccuracies.''
The GAO acknowledges it ``did not perform any independent analysis to
determine whether a shortage of IT workers exists in the United
States'' but merely critiqued the methodology of a Commerce Department
study, a critique the Commerce Department critiques. In fact, the GAO
does not question that the U.S. economy will create more than 100,000
jobs a year in information technology over the next decade.
There is a legitimate debate about how best to address the supply of
needed skilled workers. The legislation I have introduced is a balanced
approach that utilizes a combination of college scholarships for young
people, training for the unemployed, and an increase in foreign-born
professionals on H-1B temporary visas. The legislation, supported by my
colleagues Senators Hatch, McCain, DeWine, Specter, Grams and
Brownback, will be strongly pushed before the April recess. If American
companies cannot find home grown talent, and if they cannot bring
talent to this country, a large number are likely to move key
operations overseas, sending those and related jobs currently held by
Americans with them. We do not want that to happen. I encourage my
colleagues to support the American Competitiveness Act.
I ask unanimous consent that letters of support for the bill from
Empower America's Jack Kemp, the National Asian Pacific American Legal
Consortium, and the U.S. Hispanic Chamber of Commerce, as well as
recent editorials in the Oakland Press and the Washington Times be
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
March 18, 1998.
Hon. William J. Clinton,
President of the United States,
The White House, Washington, DC.
Dear Mr. President: As you are aware, America's high-
technology firms are among the most dynamic and innovative in
the world today. From the stock market--where the current
boom has been fueled, in large part, by high-tech stocks--to
the retail market--where consumers benefit from steadily
decreasing prices and expanding choices--the success of U.S.
high-tech businesses has played an integral role in creating
prosperity and opportunity that transcends Silicon Valley.
Despite aggressive recruitment and education efforts,
America's high-technology sector faces a severe labor
shortage. The unemployment rate among electrical engineers
has plummeted to 0.4%. According to the Information
Technology Association of America, more than 346,000 skilled
positions remain vacant. A shortage of skilled workers is
preventing high-tech U.S. firms from growing at their full
potential.
By November of 1997, the U.S. issued its annual cap of
65,000 H-1B temporary visas, which allow skilled foreign
professionals to work in the United States. This year the cap
will be hit at least four months before the end of the fiscal
year, shutting the door to thousands of skilled employees and
causing serious disruption to high-tech industry. U.S.
companies and universities will effectively lose access to a
crucial pool of skilled labor within eighteen months unless
the cap is expanded. This will devastate many of the most
dynamic sectors of our economy.
In public statements by Commerce Secretary Daley, and in
Congressional testimony from the Department of Labor, your
administration has not only expressed opposition to
increasing the cap; it has insisted on vastly expanded
regulatory burdens that will dramatically reduce U.S.
employers' access to this key source of personnel.
Equally troubling, these so-called reforms are packaged in
a way that can only be described as anti-immigrant, and I do
not use the term casually. It cannot be lost on Department of
Labor officials that the majority of the people entering the
United States on-H-1B visas are of Hispanic or Asian Pacific
origin. Cypress Semiconductor CEO T.J. Rodgers recently
testified to Congress, ``Most of our H-1B hires are
individuals of either Asian Pacific or Hispanic descent, just
like many other immigrants. Neither these individuals nor
anyone who comes through the family immigration or refugee
system should be maligned unfairly for `taking away American
jobs.' '' I agree.
Mr. Rodgers has also stated, ``We would lose jobs without
our immigrant talent. The logic of those who claim otherwise
including high-ranking members of the Clinton Administration,
borders on folly.''
I have been dismayed to hear nativist appeals to ``protect
U.S. workers'' coming from the Labor Department. I urge you t
overrule those protectionist sentiments and support an
increase in the H-1B cap without attaching new and highly
restrictive measures that will harm the H-1B recipients, U.S.
employers, and the U.S. economy. These new burdens will
ultimately cost American jobs by pushing American firms
offshore.
I also urge you to support the American Competitiveness
Act, authored by Senator Spencer Abraham. This bill increases
the cap on H-1B visas sufficiently to meet the current needs
of companies and universities; it provides college
scholarships for 20,000 more young people a year to study in
math, engineering, and computer science; and it targets
enforcement at serious violators of the H-1B program, rather
than restricting the ability of law-abiding employers to hire
needed employees.
The American Competitiveness Act will allow an additional
25,000 skilled workers to enter the United States this year
on H-1B visas. This and its attention to education will help
to ameliorate labor shortages in high-tech industry now and
in the future. In the interest of encouraging economic growth
and expanding employment opportunities throughout the entire
economy, I hope that you will instruct members of your
administration to end their nativist attacks and support
Senator Abraham's bill.
Very sincerely yours,
Jack Kemp.
____
National Asian Pacific
American Legal Consortium,
Washington, DC., March 26, 1998.
Senator Spencer Abraham,
Dirksen Senate Office Building,
Washington, DC.
Dear Senator Abraham: We are writing to you regarding your
proposal, S. 1723, which seeks to increase the annual number
of H1-B visas to allow U.S. companies to employ additional
foreign-born professionals on a temporary basis. First and
foremost, we would like to thank you for your leadership in
Congress in support of legal immigration. In particular, the
Asian Pacific American community recognizes your strong
leadership in ensuring the preservation of family immigration
during the 1996 debates in Congress.
Your proposal to increase the annual number of H1-B visas
further highlights the significant contributions that
immigrants make to this country and to the U.S. economy. As
you know, 38% of those entering the United States through the
H1-B program are from Asian countries, with the largest
numbers coming from India, China, Japan and the Philippines.
Your proposal, if passed, will help to guarantee that the
American economy will continue to benefit from the talents
and skills of individuals from Asia.
It has come to our attention, however, that House
Immigration Subcommittee Chairman Lamar Smith (R-TX) is
preparing to add a provision in the companion House bill
which would impose new restrictions on family immigration.
Although we support the entry of
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more professionals under the H1-B visa program, we would
oppose any legislation that contained provisions to limit or
further restrict the current family immigration system in any
way. We understand that you will strenuously oppose any
attempt by Rep. Smith or others to add a ``poison pill''
provision on family immigration, and that you will withdraw
your bill if such a provision is in fact added to the final
version.
In addition, we hope that you will be vigilant in pushing
for all appropriate safeguards and measures to protect the
wages and working conditions of H1-B workers, with proper
enforcement mechanisms should an employer fail to comply with
these measures.
We understand that your bill will be marked up on April 2
before the full Senate Judiciary Committee. We support your
bill based on your commitment and continued assurance to
withdraw the bill if a provision is added that limits or
further restricts family immigration in any way.
Sincerely,
Karen K. Narasaki,
Executive Director.
____
U.S. Hispanic Chamber of Commerce,
Washington, DC, March 26, 1998.
Hon. Spencer Abraham,
U.S. Senate,
Washington, DC.
Dear Senator Abraham: On behalf of the United States
Hispanic Chamber of Commerce we would like to congratulate
you for introducing legislation such as the American
Competitiveness Act. This legislation will help many
Hispanic-owned businesses in finding the key personnel they
need to grow and prosper in an increasingly competitive
global market.
As you know, many companies are finding it extremely
difficult to find skilled personnel. Clearly there is a
shortage of skilled workers in America, particularly in high
technology fields. This has meant that many companies are
leaving positions unfilled, which affects their ability to
provide new products and services to customers, and to create
more jobs in this country. Moreover, many of our members are
establishing greater ties to global export markets. To
succeed, they often need people who have grown up and
experienced the cultures and markets to which these companies
are exporting.
The need for skilled people will not disappear soon. And
your legislation takes a balanced approach by raising the cap
on H-1B visas for foreign-born professionals, while also
increasing efforts at education and training in this country.
As you know the USHCC's goal is to represent the interests
of over one million Hispanic-owned businesses in the U.S. and
Puerto Rico. With over 210 Hispanic Chambers of Commerce
across the country, the USHCC has become the umbrella
organization which actively promotes the growth and
development of Hispanic entrepreneurs.
Sincerely,
Jose F. Nino,
President/CEO.
____
[From the Oakland Press, Mar. 19, 1998]
Admitting More Immigrants Would Provide More Workers
(By Neil Munro)
Would you believe we're running out of workers in this
country?
It's true, especially those capable of serving in our
technology industry--computer programmers, for example. Some
employers in Oakland County reportedly are having a problem
finding enough workers.
But something can be done to ease the squeeze, as they say.
And U.S. Sen. Spencer Abraham is working on it.
He has introduced legislation to increase the number of
temporary immigrants who can come here to work in high-
skilled occupations. A 1990 law limits their ranks to 65,000
annually.
This year, that is expected to be reached by summer. Just a
year or so ago, it came into play for the first time. And if
there is no change, the limit will be enforced earlier next
year, even sooner the year after that, and so on.
Abraham's bill would increase the cap to 90,000 this year,
automatically increase that by 25,000 if it is reached, and
automatically keep moving it upward in subsequent years.
The obvious question is why can't employers find such
workers in this country?
It seems youngsters aren't being encouraged or trained to
enter the field--the old disconnection between education,
people's expectations and the real world.
In addition, there have been published complaints that too
many employers are unwilling to hire older qualified
Americans who say they can't re-enter the high-tech work
force they left.
Both those who meet that definition and people who oppose
added immigration argue that some employers prefer younger,
cheaper workers who are willing to put in more hours than
they perhaps should.
Whatever the truth of all this may be, the fact is a
significant employee shortage in the computer industry--or
any other industry--would likely end the nation's longest-
running economic boom. That boom began in 1990.
We really wouldn't want to end up with a lot of Americans
lining up for unemployment checks again.
Except for largely rural backwaters and resort areas in
which work is highly seasonal, joblessness is all but unknown
in Michigan.
The unemployment rate in Oakland County, for instance, is
just 3 percent of the work force--about the number of people
normally between jobs because they're changing them
voluntarily.
Of course, there's nothing bad about immigrants. Except for
native Americans, our families all originally are from
somewhere else. Abraham's bill no doubt will face opposition
for the above-mentioned reasons. But it's hard to imagine
that the nation dares do without it.
____
[From the Washington Times, Mar. 16, 1998]
Fruits of the Bumper Job Crop
(By Donald Lambro)
The continuing decline in America's jobless rate to 4.6
percent, the lowest level in nearly 30 years, is welcome
news. We added another 310,000 workers to payrolls last
month, and more than 3.4 million over the past year.
``It's worker heaven driven by consumer heaven. There are
more jobs for more people with more pay and more worker power
than in decades. It's stunning,'' economist Allen Sinai told
The Washington Post's business reporter John Berry.
Traditionally, economists have viewed full employment to be
around 4 percent. That is the normal percentage of people who
are at any given time out of work because of layoffs,
bankruptcies or job changes. So, with some exceptions (in
West Virginia the jobless rate is a bleak 6.4 percent), we
are at nearly full employment in the economy right now.
But this good news on the job front masks a serious labor
force problem that is not getting the news media attention it
deserves: not enough qualified workers to meet the growing
demand of America's expanding high-tech industries.
Sen. Spencer Abraham of Michigan put this issue into sharp
perspective in a recent speech in the Senate:
``All is not well with this crucial sector of our economy.
American companies today are engaged in fierce competition in
global markets. To stay ahead in that competition, they must
win the battle for human capital. But companies across
America are faced with severe high-skilled labor shortages
that threaten their competitiveness in this new Information
Age economy.''
A study by Virginia Tech for the Information Technology
Association of America finds there are now more than 340,000
unfilled, high-skilled U.S. jobs in the information
technology industry. And this excludes government agencies,
non-profits, mass transit systems and businesses with 100
employees or less.
In this one high-tech field alone, the U.S. Department of
Labor projects that American businesses will create more than
130,000 information technology jobs a year over the next 10
years. That's 1.3 million job openings. But our colleges and
universities are producing less than a fourth of the number
of qualified graduates needed to fill them.
The National Software Alliance, a consortium of industry,
government and academic leaders, recently concluded that
``The supply of computer science graduates is far short of
the number needed by industry.''
This is a critical problem that threatens to undermine
economic growth and new job creation. Computer hardware and
software industries have become one of the fastest-growing
sectors of our economy and now account for about a third of
our economic growth rate. A study by the Hudson Institute, an
Indiana think tank, warns that if this shortfall persists, it
will result in a 5 percent decline in the rate of economic
growth--the equivalent of $200 billion in lost output.
High-tech companies around the country are already
reporting that they have had to forgo major new contracts
because they cannot find enough skilled workers to fulfill
them. This is resulting in untold billions of dollars in lost
business and lost employment opportunities.
Mr. Abraham has a short-term solution to this problem and a
long-term one as well.
In the short term, he proposes we modestly raise the
immigration restrictions on the entry of skilled workers from
abroad by about 25,000. The number of allowable skilled
temporary workers has been frozen at 65,000 for nearly a
decade and last year businesses reached that yearly limit by
the middle of August. This year that limit could be reached
in May.
His bill, the American Competitiveness Act, also takes a
long-term approach to the problem, offering $50 million to
pay for more than 20,000 scholarships each year for low-
income students in the fields of math, engineering and
computer sciences. It also contains some additional funding
to train unemployed workers for related high-tech jobs.
No doubt his bill will be attacked by the protectionists
and nativists who continue to believe immigrants are a net
cost to our economy when, as the declining jobless rate
overwhelming shows, they are a net plus as workers and job-
creating employers.
But there is a very strong argument against the anti-
immigration offensive that every American will understand:
``If American companies cannot find home-grown talent, and
if they cannot bring talent to this country, a large number
are likely to move key operations overseas, sending those and
related jobs currently held by Americans with them,'' Mr.
Abraham told his Senate colleagues last week.
Needless to say, his bill has a lot of support among
hundreds of high-tech executives like T. J. Rodgers, chief
executive of Cypress Semiconductor, Scott McNealy of Sun
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Microsystems, and Bill Gates, head of Microsoft, all of whom
are desperate for skilled workers. Mr. Gates and Mr. McNealy
alone have 4,522 technical job openings right now that they
cannot fill.
``Raising these [skilled immigrant] caps . . . would be a
good thing for the technology industry and for the country,''
Mr. Gates told the Senate earlier this month.
Not too many years ago the overriding issue in our country
was unemployment and job security. Today it is skilled, high-
paying jobs going begging and the specter of the mighty
American economy turning away business opportunities and
markets because it lacks qualified workers.
____________________