U.S. News: H-1B Crackdown Gives Laid-Off Workers Little Solace Yet

“A new barrier for foreign workers could open some opportunities for U.S. tech workers, who for months have faced a dismal job market.

 

But many aren't expecting much help.

 

The Trump administration last week said it would now cost $100,000 to apply for new H-1B visas, which are especially used for tech jobs, dominated by workers from India and supply a big labor force for many tech titans, including Amazon.com. The Trump administration's stated goal: to open up more opportunities for American workers.

 

The Wall Street Journal spoke with a dozen recently laid-off tech employees, most of whom are still hunting for work. Most said their biggest problems are a weak domestic job market, the rise of artificial intelligence and a glut of displaced people looking for similar roles. Some said the new visa fees might reduce competition, but others said their H-1B colleagues helped tech companies flourish, which can lead to more jobs.

 

"I've been unemployed for four months, but it's not like I'm not getting interviews because of the H-1B workforce," said Dallas-based Suzanne Carroll, 54 years old, who lost her IT risk and compliance job earlier this year. Recent layoffs have hit H-1B workers hard, too, she said: "We're all being impacted."

 

The U.S. caps the number of new H-1B visas at 85,000 a year, but there are exceptions for employees of universities and other nonprofits. The U.S. issued nearly 400,000 of these visas in the last fiscal year, most to cover situations like extensions or workers switching jobs.

 

The White House and other critics argue the H-1B program takes jobs away from American workers and is subject to abuse, including by IT outsourcing companies that allow tech companies to pay visa holders less for the same work. Former Trump aide Steve Bannon has called it a "scam to destroy the American worker."

 

A September poll by the Associated Press-NORC Center for Public Affairs Research found 6 in 10 Americans think legal immigration offers major benefits to economic growth, up 16 percentage points since March 2024. Many of the tech world's most notable luminaries -- ranging from Microsoft CEO Satya Nadella to Elon Musk -- have previously themselves held H-1B visas.

 

Another survey earlier this year by tech staffing company Howdy.com, which polled more than 1,000 tech workers, found 75% said H-1B workers filled skill gaps in the workplace. Still, one in five people in that survey said they feared H-1B recipients would replace them, and a quarter said workers with the visas were paid less. And some tech workers trying to find jobs are hopeful that Trump's new policy will help.

 

"I think it's going to even the playing field," said Byron Hilyard, 61, a support engineer in Salem, Ore. He quit a job two years ago thinking he would find another, but he is still out of work and worried ageism has also limited his prospects.

 

Graham Harris, a 25-year-old in Brooklyn, has started looking beyond the tech field for a new job after an April layoff. But he also thinks the new visa policy might ease some competition. "Companies will have to look for U.S. talent," he said.

 

Most workers the Journal spoke with said they face much bigger challenges, including layoffs that have erased more than 240,000 tech jobs since 2024, according to Layoffs.fyi, which tracks workforce reductions in tech. During the pandemic, many companies overhired and have since been paring back, and growth in AI also has pushed some to rethink their staffing, said Vijay Govindarajan, professor at Dartmouth College's Tuck School of Business.

 

Labor reports show a sluggish job market overall, with hiring stalled in recent months, hitting white-collar and tech workers hard. Concern about a weak labor market recently prompted the first Federal Reserve interest-rate cut this year.

 

"I just think companies are being very conservative because of the economy," said Juliette Gondon, 26, who lost her job at a recruitment technology startup this spring. Since then, she said roughly 100 job applications have yielded two interviews and no offers.

 

Some tech leaders have praised Trump's new H-1B fee, saying it would encourage tech companies to seek visas only for high-value jobs. Others have said the new policy will motivate companies to offshore jobs.” [1]

 

The companies offshore jobs always, if they can. The only jobs lest in America are not easy to offshore.

 

While the pursuit of lower costs and accessing global talent are strong incentives, many factors make some jobs difficult to offshore. These jobs are often described as requiring a physical presence, high-level relationship management, specialized knowledge, or specific security clearances.

 

Reasons companies offshore jobs

 

    Cost savings: Moving operations to countries with lower labor costs can significantly reduce expenses, increasing profit margins and competitiveness.

    Access to skilled talent: Companies can tap into a larger, more diverse global talent pool, especially in technical fields like software development, to address domestic talent shortages.

    Increased efficiency and productivity: Offshoring can enable 24/7 operations and faster project completion by leveraging teams in different time zones.

    Business expansion: Lower costs and higher profitability can allow a business to expand, reinvesting its savings into other strategic initiatives.

 

Jobs that are hard to offshore

The types of jobs that are resistant to being moved overseas generally fall into a few key categories:

Location-dependent jobs

These roles require a physical presence at a specific site and cannot be performed remotely. Examples include:

 

    Skilled trades: Electricians, plumbers, HVAC technicians, and welders need to be physically present to perform installations and repairs.

    Healthcare providers: While some medical services may be supported by AI in the future, roles like physicians, nurses, and dental assistants require in-person interaction.

    Service industry: Chefs, restaurant staff, hotel housekeepers, police, and firefighters must be on-site to deliver their services.

    Logistics and transportation: Truck drivers, transit operators, and stock clerks perform work that is physically tied to a specific location.

 

Relationship-focused jobs

These roles require extensive personal interaction and a deep understanding of local culture and market nuances. Examples include:

 

    High-level management and leadership: A company's core leadership is almost always located in-house to guide strategy and culture.

    Sales and consulting: These jobs depend on building strong, face-to-face relationships with clients and understanding the intricacies of the local market.

    Educators: Teachers in primary and secondary schools must be physically present to teach and manage classrooms.

 

Jobs requiring high security and specialized knowledge

Certain positions are constrained by legal, security, or proprietary requirements. Examples include:

 

    Federal government jobs: Many roles require specific security clearances that mandate U.S. citizenship.

    Positions involving trade secrets: Roles that require knowledge of core products or processes may be kept in-house to protect intellectual property.

    Research and development: Critical innovation and R&D roles are often kept in the home country to protect intellectual property and foster a homegrown talent pool.

 

Consequences of offshoring for the US economy

While offshoring can offer economic benefits, it also has significant negative impacts on the U.S. workforce and economy.

 

    Job displacement: Offshoring leads to job losses, particularly in manufacturing and technology, affecting individual workers and their communities.

   

Wage suppression: Increased competition from overseas labor puts downward pressure on wages for domestic jobs. As a result, less locals choose to perform these jobs. Low numbers of local talent limit the country’s ability to respond to a military crisis.

 

    Decreased social mobility: The shift to lower-wage service-sector jobs can limit economic opportunity, particularly for workers without college degrees.

 

    Loss of innovation and competitiveness: By moving core operations and expertise abroad, U.S. companies may weaken their ability to innovate and compete long-term.

 

1. U.S. News: H-1B Crackdown Gives Laid-Off Workers Little Solace. Te-Ping, Chen; Ellis, Lindsay.  Wall Street Journal, Eastern edition; New York, N.Y.. 29 Sep 2025: A6.