Why the Global Talent Conversation is Important to Migration Trends
The race to attract global talent is ultra-competitive and ever-shifting. Employers across the globe continuously compete to find and retain top-tier talent in order to fill internal hiring needs. Industries and professional sectors are borne from, and dedicated solely for this purpose. According to an industry report by IBIS, the market size, measured by revenue, of the Global HR & Recruitment Services industry in 2023 was $868.8bn.
Furthermore, this desire to attract highly skilled labor is not limited to private-sector enterprises. Countries also compete to attract both employers as well as highly-skilled labor. Through fiscal incentives (i.e. tax-breaks), and new visa regimes (i.e. remote work visas), the contemporary rise of “talent migration” is notable and cannot be ignored.
“Talented and skilled individuals have a key role to play in countries’ future prosperity. They hold jobs that are key for innovation and technological progress and ultimately contribute to stronger economic growth with other employment opportunities and better living conditions for all.” - Organization for Economic Cooperation and Development (OECD, 2023)
So in the context of this article, when we consider the “innovation economy”, we are referring to the ability for the United States, as a nation, to attract both the entities and talent necessary to compete on a global economic scale.
The United States of America: Labor Market Shortages & Skilled Labor Gaps
The conversation about talent migration is intricately interwoven with nationwide economic development. It embodies the ability for the United States to meet domestic hiring needs that not only foster economic growth, but ensure stability. A 2024 snapshot at the current state of affairs in the United States illustrates an evident gap in the domestic labor market.
© US Chamber of Commerce (January 2024)
“We hear every day from our member companies—of every size and industry, across nearly every state—they’re facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, the latest data shows that we have 9.5 million job openings in the U.S., but only 6.5 million unemployed workers.” - Stephanie Ferguson Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce.
If we accept that immigration pathways are a meaningful source for filling labor shortage gaps in the United States, it is obvious that the immigration framework itself has bottlenecks. Many qualified U.S. immigration practitioners, and most U.S.-based employers hiring foreign national talent will know this old, frustrating adage. Therefore, it comes as no surprise that a root of this issue exists within a visa category that is over three-decades old, yet remains the most utilized visa for highly-skilled foreign-national professionals seeking to live and work in the United States.
It is worth noting that the purpose of this article is not to enumerate problems within the U.S. immigration framework. As mentioned, immigration is inherently complex with multifaceted interests that are constantly competing. Rather, the main objective of this article is to illustrate an innovative U.S. visa solution that provides a fully compliant immigration pathway for employers seeking to hire and retain global talent in the United States.
The H-1B Visa: The Immigration Pathway for Speciality Occupations
As hinted above, there is a glaring gap between existing regulations and practical economic needs that emphasize the importance of this innovative H-1B cap exempt model.
Since the authorization of the Immigration Act of 1990, the H-1B visa has provided foreign-born workers the ability to work temporarily in the United States. Notably, the H-1B “Specialty Occupations” visa has become a “go-to” immigration pathway for college-educated workers to enter, live and work in the United States. U.S. employers rely on the H-1B visa category to effectively sponsor workers and petition USCIS on their behalf. Furthermore, the “dual-intent” nature of the H-1B visa provides a long-term immigration solution, as visa holders can reside and work in the United States while simultaneously applying for permanent residency.
Simply put, there is a lack of direct alternatives for highly-skilled “speciality workers”, and the H-1B visa has become the “visa of choice” for most employers seeking to hire and retain foreign talent in the United States.
“H-1B visas are essential because they generally represent the only practical way for a highly-skilled foreign national, including an international student, to work long-term in the United States and have an opportunity to become an employment-based immigrant and a U.S. citizen. A 2022 NFAP study found 55% of America’s startup companies valued at $1 billion or more have at least one immigrant founder, illustrating the importance and contributions of immigrants to the U.S. economy.”
We only need to look at the actual numbers to understand the severity of the situation. And some of the most notorious numbers are 65,000 and 85,000 – representing the maximum capacity of H-1B “cap-subject” visas that are issued by the United States through a lottery system on an annual basis – also known as “cap-season”.
And there is nothing festive about “cap-season”. In fact, trends in applying for the H-1B cap-subject visa have sharply increased to a point of implosion. While this has promulgated new regulatory measures in 2024 to combat abuse of this overworked immigration pathway, it does not address immediate needs of talent migration into the United States.
In conclusion, the mismatch between job openings and unemployed workers underscores the critical role of immigration, particularly the H-1B visa, in addressing labor shortages. Despite the complexities within the U.S. immigration framework, the H-1B visa stands out as a vital pathway for skilled professionals, underscoring the need for innovative solutions to maintain the U.S.'s competitive edge in the global talent race.
