Trump's H-1B visa crackdown could cut US jobs instead of creating them

"The higher price tag for coveted H-1B visas might drive up employers' costs, but not necessarily their appetite for US workers. That's one possible result of the Trump administration's recent decision to raise the cost of thesespecial visas, meant for skilled workers that employers can't find in the US, to $100,000, researchers who study the issue told Business Insider. Faced with higher costs to bring in foreign workers, some US firms could look overseas for remoteworkers before they turn to domestic ones. That wouldn't be great news for the US job market."

"On top of that, if the overall US economy is weakened by a drop in skilled foreign workers - and innovation more broadly - that could hurt US growth and cut into demand for a range of jobs, these experts said. That would run counter to the aims of President Donald Trump, who said the changes are meant to push employers to hire US workers rather than international ones. The president's actions discourage companies from "spamming the system and driving down American wages," White House spokesperson Taylor Rogers told Business Insider in an email. "No 'economic study' can change the reality lived by many Americans across the country who bore the brunt of the massive abuse of the H1-B system," Rogers said."

"Most research suggests that companies don't respond to visa restrictions by hiring more local workers, Britta Glennon, an assistant professor of management at the University of Pennsylvania's Wharton School, told Business Insider. Some US multinational companies are already using strategies to offshore jobs, she said. With the latest H-1B changes, "they're just going to intensify that," Glennon"

The Trump administration raised H-1B visa fees to $100,000 for visas intended for skilled workers not available domestically. Higher fees may increase employer costs without prompting more hiring of US workers. Some firms could intensify offshoring or hire remote foreign workers instead of recruiting domestically. A reduction in skilled foreign workers could weaken innovation, slow economic growth, and reduce demand across multiple job sectors. The program currently brings in up to 85,000 international workers per year, so fee hikes can ripple through labor markets and corporate staffing decisions.

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