US Labor and the Death of the H-1B Visa?

Labor offshoring has already changed our country in a multitude of unexpected ways, but the rise of remote offshore work could change the dynamics of employment in ways we may never have expected.

H-1B visas have long been the backbone of America’s ability to bring in highly skilled workers from across the globe, but they can be both expensive and come with a bureaucratic nightmare. Big businesses may be able to deal with the hassle, but smaller businesses just can’t.

What would happen if we no longer need to bring skilled workers here? Does an alternative exist that allows businesses to bring in the same talent without the same oversight, and for less than an H-1B visa-holding employee?

By switching to offshore workers, businesses can bring in the talent they need from anywhere in the world, without having to deal with H-1B visas, and still employ them for less than American workers.

The growth in popularity and extraordinary value of remote offshore work could very well spell the end of the H-1B visa.

The H-1B Visa and Its Place in Our Economy

America issues 85,000 H-1B visas each year. This includes 20,000 reserved for those who have earned a master’s degree or higher in the United States. This is an incredibly small number compared to the number of applicants, with over 700,000 people applying in 2024 alone.

H-1B visas have long been a pillar of America’s economic growth. Used to bring in specialized and well-educated foreign workers, the H-1B visa program allows American businesses to fill in the gaps created by a lack of qualified domestic workers. When the American labor force can’t provide your business with the skills that it needs, a worker from another country may be able to provide you with just what you need, and an H-1B visa can bring them here.

For the US as a whole, H-1B visas allow the US to expand its workforce and increase productivity. H-1B visa holders are also required to pay the same taxes as American workers, meaning that the US government gets to increase its tax revenues.

The H-1B visa is generally a win for the US economy. Businesses get to hire qualified workers they might not be able to readily find in the US, and the American labor force and tax base expand.

The Limits of the H-1B Visa

The H-1B visa program, though, has its limitations. The Bureaucratic oversight can be an absolute mess, and the payoff may not be worth the hassle.

All applicants require sponsorship by a US employer before they can receive a visa, and are incapable of self-petitioning. This means that if a business wants to hire someone from out of the country, they better be prepared to jump through bureaucratic hoops right from the start. 

The paperwork for employers of H-1B visa holders can be extensive and messy, to say the least. Even after the employee is hired, the paperwork won’t end – any changes in job title or type of work could require overhauls to preexisting legal papers. Businesses that hire H-1B visa-holding employees may also be subject to onsite visits and audits to ensure compliance with all rules and regulations, only adding to the chaos.

H-1B visas are also only temporary, lasting just 3 years, but can be extended to 6. Getting that extension, though, can be a pain for any business. Sponsoring a green card can extend the stay of valued employees significantly, but doing so requires even more paperwork and bureaucratic wrangling. Businesses may be forced to give up their qualified and experienced employees thanks to the madness.

The Trump administration also significantly curtailed the H-1B visa program, increasing scrutiny, strictly enforcing rules and regulations, increasing denial rates, and lengthening the processing times for petitions. This only added to the many problems a number of businesses had and have when trying to work within the program.

Workers hired must also be paid according to US labor laws, meaning the costs associated with hiring an employee who requires an H-1B visa might still be just as high as someone born in the US. That alone could overshadow any form of qualifications on the part of a potential hire.

While the biggest of US businesses may be able to shoulder the extra burden of H-1B visa-holding employees, smaller businesses may be unable to. The oversight, the paperwork, all of it may just be too much of a burden, especially when any of these hires must be paid the exact same as American workers who don’t come with the extra hassle.

Offshoring – The H-1B Visa Alternative

Many employers choose to forgo H-1B visa employees, and rightly so. It can be a pain. The biggest businesses may be able to absorb the burden, but smaller ones can’t. Even if H-1B visa-holding employees might come with a top-notch education, the right skills, and plenty of experience, it may just not be worth it.

What most businesses are unaware of, though, is that there are other options. By switching to offshore labor, businesses can find employees who are just as qualified as those who require an H-1B visa, but with nowhere near as much paperwork, bureaucracy, and at a significantly lower price tag.

If the goal of the H-1B visa program is to build America’s labor force and give its businesses access to global talent, then the newfound prevalence of remote work has rendered the effort moot. Businesses today can hire the most qualified and experienced workers in the world, without having to go through the nightmare of bringing them into the US, and without having to pay them high-priced American wages.

Today, it no longer matters where a business is or where its employees are. They can get the job done, and they can get it done better than ever before. The top talent with the most experience and the best education can be matched up with any business, no matter where they are in the world.

Offshore labor can provide any business with the exact talent they need. Accounting, finance, software design, customer support, marketing and graphic design, management, and countless other positions can be filled by offshore employees. All can come together through remote work technologies to get the job done anywhere in the world. With offshore labor, all of these employees can come together for less than one who requires an H-1B visa, and for less than their American counterparts.