• Insights

Fragomen on Immigration: Report Finds Lack of H-1B Visas Causes Job and Wage Loss for U.S. Tech Workers

June 18, 2014

Country / Territory

  • United StatesUnited States

Related contacts

austin_fragomen

Austin T. Fragomen

Chairman Emeritus

Fragomen in Miami, FL, United States

Email

[email protected]

T:+1 786 539 1744

Related offices

  • Atlanta
  • Boston
  • Chicago
  • Fragomen in Miami, FL
  • Dallas
  • Houston
  • Irvine
  • Los Angeles
  • Matawan
  • New York
  • Phoenix
  • San Diego
  • San Francisco
  • San José
  • Silicon Valley
  • Detroit
  • Washington, DC

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

austin_fragomen

Austin T. Fragomen

Chairman Emeritus

Fragomen in Miami, FL, United States

Email

[email protected]

T:+1 786 539 1744

Related offices

  • Atlanta
  • Boston
  • Chicago
  • Fragomen in Miami, FL
  • Dallas
  • Houston
  • Irvine
  • Los Angeles
  • Matawan
  • New York
  • Phoenix
  • San Diego
  • San Francisco
  • San José
  • Silicon Valley
  • Detroit
  • Washington, DC

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

austin_fragomen

Austin T. Fragomen

Chairman Emeritus

Fragomen in Miami, FL, United States

Email

[email protected]

T:+1 786 539 1744

Related offices

  • Atlanta
  • Boston
  • Chicago
  • Fragomen in Miami, FL
  • Dallas
  • Houston
  • Irvine
  • Los Angeles
  • Matawan
  • New York
  • Phoenix
  • San Diego
  • San Francisco
  • San José
  • Silicon Valley
  • Detroit
  • Washington, DC

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Austin T. Fragomen, Jr.

A new report by the bipartisan Partnership for a New American Economy has found that the denial of H-1B visas for foreign computer technology professionals has caused a significant loss of job and wage growth for U.S.-born tech workers. The report, entitled “Closing Economic Windows: How H 1B Visa Denials Cost U.S.-Born Tech Workers Jobs and Wages During the Great Recession,” drew on data from a naturally-occurring randomized sample: the 2007 and 2008 H 1B visa lotteries. 

The large numbers of H-1B petitions filed in those years (and in all of the years since)—and the consequent need for U.S. Citizenship and Immigration Services (USCIS) to conduct a lottery to determine which petitions to process—resulted in what the study described as “a rationing of foreign-born, high-skilled immigrant workers that was both significant in size and randomly distributed among applicants.” This “H-1B shock” gave researchers the opportunity to measure the impact the lack of sufficient H-1B visas had on individual metropolitan areas across the country. While a sudden “shock” in the supply of H-1B workers might be expected to cause employers to hire U.S. workers instead, this is only true if there are sufficient numbers of U.S. workers with the skills employers need. In fact, what this study found is that H-1B shock is damaging to the U.S. economy because H-1B workers are complementary to U.S. workers, not substitutes for them. 
 
For example, those cities that experienced the greatest H-1B shock in 2007 and 2008 also experienced slower growth in the number of information technology jobs, both high-skilled and low-skilled, for U.S. workers. Specifically, the study found that “every time a city experienced a 1 percent [H-1B] shock … the growth in the number of jobs available for non-college educated U.S.-born workers slowed as much as 7.1 percent … [and that for] equivalent U.S.-born college-educated workers, it slowed by as much as 1.3 percent.” The report’s key findings included the following:
  • The high number of H-1B visa applications that were eliminated in the 2007-2008 visa lotteries represented a major lost opportunity for U.S.- born workers and the American economy overall.
  • The U.S. tech industry would have grown substantially faster in the years immediately after the recession if not for the large number of visas that didn’t make it through the 2007 and 2008 H-1B visa lotteries.
  • U.S.-born workers without bachelor’s degrees were disproportionately hurt by the H-1B visa lotteries in 2007-2008.
  • The H-1B visa denials from the lotteries in 2007 and 2008 greatly slowed wage growth for workers in computer-related industries. 
 
Looking at general wage and job growth data from the Department of Labor, America’s metropolitan areas added approximately 110,000 jobs for U.S.-born workers in computer-related fields from 2005-2010. Comparing these numbers with statistics from the 2007 and 2008 H-1B visa lotteries, the study concluded that this figure would have been at least 55 percent higher if there had not been so many H-1B denials in 2007 and 2008. 

When employers were unable to hire H-1B workers to whom they had made job offers, those employers did not create jobs in operations, sales and other support positions that expanded businesses would have needed. And contrary to the popular myth that all tech jobs are performed by high-skilled workers, many of these lost jobs would have gone to lesser-skilled support staff working in secretarial, administrative and other lower-level positions. Notably, these are the types of jobs that would have gone to precisely those workers who were hardest hit by the recession that began in 2007. 

The clear results of the detailed analysis set out in this report show that “[d]enying H-1B visas didn’t help the economies of America’s cities or their U.S.-born workers. Instead, it cost their tech sectors hundreds of thousands of jobs and billions in missed wages.” 

The report, available at the link below, is well worth reading in its entirety: 

http://www.renewoureconomy.org/wp-content/uploads/2014/06/pnae_h1b.pdf 

Country / Territory

  • United StatesUnited States

Related contacts

austin_fragomen

Austin T. Fragomen

Chairman Emeritus

Fragomen in Miami, FL, United States

Email

[email protected]

T:+1 786 539 1744

Related offices

  • Atlanta
  • Boston
  • Chicago
  • Fragomen in Miami, FL
  • Dallas
  • Houston
  • Irvine
  • Los Angeles
  • Matawan
  • New York
  • Phoenix
  • San Diego
  • San Francisco
  • San José
  • Silicon Valley
  • Detroit
  • Washington, DC

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

austin_fragomen

Austin T. Fragomen

Chairman Emeritus

Fragomen in Miami, FL, United States

Email

[email protected]

T:+1 786 539 1744

Related offices

  • Atlanta
  • Boston
  • Chicago
  • Fragomen in Miami, FL
  • Dallas
  • Houston
  • Irvine
  • Los Angeles
  • Matawan
  • New York
  • Phoenix
  • San Diego
  • San Francisco
  • San José
  • Silicon Valley
  • Detroit
  • Washington, DC

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

austin_fragomen

Austin T. Fragomen

Chairman Emeritus

Fragomen in Miami, FL, United States

Email

[email protected]

T:+1 786 539 1744

Related offices

  • Atlanta
  • Boston
  • Chicago
  • Fragomen in Miami, FL
  • Dallas
  • Houston
  • Irvine
  • Los Angeles
  • Matawan
  • New York
  • Phoenix
  • San Diego
  • San Francisco
  • San José
  • Silicon Valley
  • Detroit
  • Washington, DC

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Times Higher Education: UK Student Visa Applications Fall in October

Senior Manager Jonathan Hill discusses factors behind the decline in UK student visa applications, including recruitment restrictions, rising costs and changes to post-study work rights.

Learn more

Fragomen news

Comment on USCIS’s Proposed Rule to Eliminate Deference to Prior ApprovalsLearn more

Fragomen news

Fragomen Appoints Timo Heck as Managing Partner of DACH Region

Fragomen has appointed Timo Heck as Managing Partner of the DACH region, encompassing Germany, Austria and Switzerland.

Learn more

Awards

Fragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™

Eight professionals in Fragomen’s Mexico City office have been recognized in the 2027 edition of The Best Lawyers in Mexico™ for Immigration Law.

Learn more

Blog post

How Employers Can Support Integration and Retain International Talent in Germany

Senior Manager Katharina Vorländer explores how employers in Germany can look beyond the initial immigration process to support integration, long-term stability and the retention of international talent.

Learn more

Media mentions

Scottish Legal News: Scotland’s Investment Ambitions Depend on Workforce Readiness

Director Kelly Hardman explores why workforce planning is essential to Scotland’s investment ambitions and long-term economic growth.

Learn more

Fragomen news

Comment on DHS Proposal to Eliminate the 60-day Grace PeriodLearn more

Fragomen news

Comment on DHS proposal to impose up to $100,000 in Optional Practical Training FeesLearn more

Media mentions

Human Resources Director: Fixed-Term Contract Limits Squeeze Visa Sponsorship, Research Warns

Co-authors Partner Charles Johanes, Senior Counsel Anna Boucher and Allens Partner Tarsha Gavin explore the intersection of Australia’s migration and employment laws and the implications for employers sponsoring temporary visa holders.

Learn more

Media mentions

Prawo: Pracodawca na pierwszej linii: jak reforma zatrudniania cudzoziemców przesuwa odpowiedzialność na firmy

Partner Karolina Schiffter examines how Poland’s proposed foreign employment reforms could increase employers’ administrative and compliance responsibilities.

Learn more

Blog post

Trusted Digital Identity Is Critical Infrastructure for Global Mobility

In the first blog in a new series, Managing Director, Digital Identity Amit Sharma explores why trusted digital identity is becoming increasingly important to global mobility, how reusable digital credentials could work and why interoperability across systems and jurisdictions will be critical.

Learn more

Blog post

UK Global Talent Visa vs Innovator Founder Visa: A Guide for Tech Professionals, Researchers and Founders

Senior Associate Amelia Haynes compares the UK’s Global Talent and Innovator Founder visa routes, examining who each route may suit, the evidence required, professional flexibility and potential pathways to settlement.

Learn more

Media mentions

Times Higher Education: UK Student Visa Applications Fall in October

Senior Manager Jonathan Hill discusses factors behind the decline in UK student visa applications, including recruitment restrictions, rising costs and changes to post-study work rights.

Learn more

Fragomen news

Comment on USCIS’s Proposed Rule to Eliminate Deference to Prior ApprovalsLearn more

Fragomen news

Fragomen Appoints Timo Heck as Managing Partner of DACH Region

Fragomen has appointed Timo Heck as Managing Partner of the DACH region, encompassing Germany, Austria and Switzerland.

Learn more

Awards

Fragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™

Eight professionals in Fragomen’s Mexico City office have been recognized in the 2027 edition of The Best Lawyers in Mexico™ for Immigration Law.

Learn more

Blog post

How Employers Can Support Integration and Retain International Talent in Germany

Senior Manager Katharina Vorländer explores how employers in Germany can look beyond the initial immigration process to support integration, long-term stability and the retention of international talent.

Learn more

Media mentions

Scottish Legal News: Scotland’s Investment Ambitions Depend on Workforce Readiness

Director Kelly Hardman explores why workforce planning is essential to Scotland’s investment ambitions and long-term economic growth.

Learn more

Fragomen news

Comment on DHS Proposal to Eliminate the 60-day Grace PeriodLearn more

Fragomen news

Comment on DHS proposal to impose up to $100,000 in Optional Practical Training FeesLearn more

Media mentions

Human Resources Director: Fixed-Term Contract Limits Squeeze Visa Sponsorship, Research Warns

Co-authors Partner Charles Johanes, Senior Counsel Anna Boucher and Allens Partner Tarsha Gavin explore the intersection of Australia’s migration and employment laws and the implications for employers sponsoring temporary visa holders.

Learn more

Media mentions

Prawo: Pracodawca na pierwszej linii: jak reforma zatrudniania cudzoziemców przesuwa odpowiedzialność na firmy

Partner Karolina Schiffter examines how Poland’s proposed foreign employment reforms could increase employers’ administrative and compliance responsibilities.

Learn more

Blog post

Trusted Digital Identity Is Critical Infrastructure for Global Mobility

In the first blog in a new series, Managing Director, Digital Identity Amit Sharma explores why trusted digital identity is becoming increasingly important to global mobility, how reusable digital credentials could work and why interoperability across systems and jurisdictions will be critical.

Learn more

Blog post

UK Global Talent Visa vs Innovator Founder Visa: A Guide for Tech Professionals, Researchers and Founders

Senior Associate Amelia Haynes compares the UK’s Global Talent and Innovator Founder visa routes, examining who each route may suit, the evidence required, professional flexibility and potential pathways to settlement.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
November 12, 2026 | MexicoFragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™
November 13, 2026 | CanadaCanada: 2027–2029 Immigration Levels Plan Maintains Overall Targets and Adds Permanent Residence Spaces
November 13, 2026 | United KingdomTimes Higher Education: UK Student Visa Applications Fall in October
November 12, 2026 | United StatesComment on USCIS’s Proposed Rule to Eliminate Deference to Prior Approvals
November 12, 2026 | Austria, Germany, SwitzerlandFragomen Appoints Timo Heck as Managing Partner of DACH Region
November 12, 2026 | MexicoFragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™
November 13, 2026 | CanadaCanada: 2027–2029 Immigration Levels Plan Maintains Overall Targets and Adds Permanent Residence Spaces
November 13, 2026 | United KingdomTimes Higher Education: UK Student Visa Applications Fall in October
November 12, 2026 | United StatesComment on USCIS’s Proposed Rule to Eliminate Deference to Prior Approvals
November 12, 2026 | Austria, Germany, SwitzerlandFragomen Appoints Timo Heck as Managing Partner of DACH Region
November 12, 2026 | MexicoFragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.