According to a report, the nation does not produce enough skilled degree holders to meet the growing demand. The only way out is boosting high-skilled immigration which will help to close the present skills gap, simultaneously contributing to new business development and economic growth opportunities. Despite the favourable effects of immigration and the expansion of the US economy, the existing H-1B visa standards have not changed in the past 14 years.
As per a report produced by a group of technology CEOs, if the US does not take action to address the country’s high-skilled worker shortage, it could result in over 9 million job vacancies and $1.2 trillion in productivity loss over the next decades.
Because the United States does not produce enough qualified degree holders to meet demand, boosting high-skilled immigration is the greatest way to close the present skills gap while also contributing to new business development and economic growth, according to a report released by TechNet.
Considering the favourable effects of immigration and the expansion of the US economy, the existing H-1B visa standards have not changed in 14 years. “We are in a global race for talent. The United States must welcome the world’s best and the brightest, and their families, so they can put their talents to work for the American economy,” said Linda Moore, president, and CEO, TechNet.
According to the review, ‘Closing the Skills Gap: The Data Behind Talent Shortages, High-Skilled Immigration, and Economic Impact,’ while education reform is critical for closing the skills gap in the future, it is a two-decade investment that will not solve the current shortage of skilled labour in the US.
According to the most recent data, there are more than 10 million job opportunities in the United States, with over 7 million individuals unemployed. Businesses’ bottom lines are being harmed by their inability to locate personnel.
According to TechNet’s survey, 64 per cent of companies report a skills gap at their organization, and failing to close the gap could cut productivity by 51 per cent, slow economic growth by 42 per cent, and stifle creativity by 43 per cent. It goes on to say that this does not come at the expense of American employees. As per the report’s findings, immigration increases American workers’ employment and earnings potential.
According to estimates from the US Labor Department, the US economy added just 2,10,000 jobs last month, far less than the half-million expected. The unemployment rate decreased to 4.2%, while the labour force participation rate increased to 61.8 per cent. US President Joe Biden mainly overlooked the missing estimates in his remarks on December 3, instead of focusing on the decline in unemployment.
Overall, the November job numbers indicate a durable economic recovery, albeit one that is threatened by rising prices and the probable impact of the coronavirus strain Omicron.
The employment report is made up of two surveys: one of the employers and another of households. According to the employer survey, hiring has slowed in a variety of industries, including automakers and retailers. The home survey revealed strong employment growth and people returning to the workforce.
Whereas the aggregate number was disappointing, the decrease in the unemployment rate and increase in labour force participation may assist the US Federal Reserve to stay on pace to tighten policy sooner than expected if inflation persists longer than expected.