Offshoring Spurred On by Unavailability of US Visas

Filed in archive Americas on July 7, 2007

In the US, public opinion about immigration is often tied to economics. If we are worried about our jobs, then we feel threatened by competition and shun immigrants. When the economy is strong and the rate of unemployment low, Americans are historically more welcoming to immigrants.

For the fifth month in a row, the US Bureau of Labor Statistics reports unemployment at 4.5%. The rate of unemployment has decreased each year since 2003, when it was 6% and has not been lower since 2000, when it was 4% (see Report of the Research and Analysis Unit, Indiana Dept. of Workforce Development).

Even so, the US government has failed to expand Legal Immigration to meet the needs of the American economy. How are American companies supposed to compete?

An increasingly common solution is to go offshore. By establishing facilities in countries that want to stimulate their economies and increase tax revenue through job creation, employers are voting with their pocket books.

The big headline this week: Microsoft will open a software development office in Vancouver, Canada (see, e.g., Microsoft Vancouver responds to immigration woes Infoworld, July 5. The article mentions that the new offshore site is not the first, with other software development facilities already established in Denmark, Israel, and Ireland.

For some historical perspective, see Tech professionals group wary of offshoring, CNET March 18, 2004.

The US Congress should act quickly to increase the availability of US visas for skilled professionals to create more jobs in the United States and minimize the loss of those jobs to other countries.