Bad News for Banks Could Be Good News for H1B Applicants
The economy is terrible, unemployment is the worst it’s been in decades, and financial institutions seem unwilling to loan us any money, or adjust the loans we already have with them, at a time when we need it the most. How could there be any good news? Well, for foreign professionals seeking new H1B classification, this could actually be very good news.
As many of you may already know, there are only 85,000 H1B visa numbers available each year, with 20,000 of those reserved for people holding U.S. advanced degrees. On April 1st, the filing window opens for fiscal 2010 visas which become available this October. Last year, all 85,000 visa numbers were gone by the end of April. In fact, the 65,000 visas available to non-advanced degree holders were gone after the first day of filing. USCIS received over 130,000 petitions for the 65,000 available visa numbers. As a result, fully half of the applications were rejected without even being adjudicated.
This year, however, the bad news for the economy may be good news for the H1B program. As a result of the poor economy, the number of H1B petitions filed will almost certainly be down significantly over last year. In addition, it is now much more difficult for financial institution to sponsor H1B professionals. Although this was a bad move by Congress, it will almost certainly help businesses and prospective H1B professionals outside the financial sector.
In an article published in early February by the Associated Press, it was reported that Banks and other financial institutions had sponsored nearly 22,000 H1B applicants over the period covered by the article. In response, when Congress passed the economic stimulus bill, the bill included a provision that all but prevents financial institutions from being H1B sponsors if they receive any of the bailout money authorized by Congress. What this means to the H1B program is that the financial sector, which may have accounted for as much as 20% of the H1B visas issued last year, will not be competing for this year’s quota.
It is impossible to predict exactly how much this all will effect H1B applications this year. However, it is almost certain that the effect, whatever its magnitude, will be significant. It would not be surprising at all to see the number of applications this year fall to less than 100,000 – and perhaps even to less than 85,000. If that happens, it is likely that we won’t see any rejections this coming April. In fact, H1B visa numbers may remain available well into the spring, and perhaps even into the early summer months, something that has not happened in several years. So, as I said earlier, although much of this is bad news for the economy and the financial sector, it could be very good news for H1B applicants.
Attorney Franklin W. Nelson is a licensed attorney in the State of California as well as Federal District Courts throughout California, the United States Court of Appeals for the Ninth Circuit and the United States Supreme Court. He has been practicing law for nearly 20 years and is the President and principle shareholder of Nelson & Associates, PLC, with offices in Pasadena and El Monte, CA. Further inquiries should be directed to Attorney Nelson at his Pasadena Office by calling (626) 683-3451.
Published in Asian Journal, Saturday February 21, 2009
