[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.

                          ____________________