FY2010 H-1b Visa Demand Slow

FY2010 H-1b Visa Demand Slow - Both Regular and Masters caps petitions continue to be accepted by USCIS with employer demand sluggish - Demand for FY2010 H-1b visas is significantly off this year as compared to previous years, no doubt a function of the weak economy, legislative efforts to limit H-1b use by recipients of TARP funding, and hesitation by some corporate employers  to hire H-1b workers during a period of high unemployment.  Whereas in recent years the annual allotment of 65,000 cap-subject H-1b visas and 20,000 Masters Degree H-1b “cap exemptions” was exhausted almost immediately upon USICS opening the filing window, USCIS continues to accept new petitions nearly three months after the April 1 first-filing date.

As of June 19, 2009, only 44,500 general cap petitions had been filed, representing a decrease in the number of filings from late May 2009, when the count had been 45,800. The Masters Cap count was 20,000 petitions received, with USCIS continuing to accept additional filings.  USCIS anticipates a denial and withdrawal rate of approximately 5 – 10%, so the Masters category will not be cut off until sufficient petitions are received to ensure that all 20,000 visas for the year are likely to be issued. The general cap will likely stay open for the same reason well beyond the receipt of 65,000 petitions. USCIS has not said whether the 1,300 reduction in the general cap count between May and June was the result of an initial over count or due to a spate of denials.

In any event, USCIS appears to be more stringent this year than it has in the past, although the reasons are unclear. One reason may be USCIS’ intent to inhibit admission of foreign workers in light of high unemployment among U.S. workers. Another may be the introduction of new – and overbroad – anti-fraud initiatives made possible by the fee designated for that purposes paid with each new H-1b petition filed. 

In any event, there has been very little increase in demand for FY2010 H-1b visas since April 1, and that demand will remain slow until U.S. hiring as a whole shows signs of picking up dramatically.

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