Denial rates for H-1B petitions increase as a result of strict Trump policy
The denial rates for H-1B petitions have increased significantly from just 6% in 2015 to 24% in the third quarter of the current fiscal, a study carried out by an American think-tank has revealed. This comes as a result of more restrictive Trump administration policies.
The study by the National Foundation for American Policy, based on data received from the US citizenship and immigration services (USCIS) further reflects that the denial rate for H-1B visas is highest among major Indian IT companies, thus hinting at the fact that Indian companies are being unduly targeted by the current administration.
For instance, the denial rate of H-1B petitions for initial employment for Amazon, Microsoft, Intel and Google in 2015 was just 1%. In 2019, the same increased respectively to 6%, 8%, 7% and 3%. The denial rate for Apple remained the same at 2%.
During the same period, the study has shown that Tech Mahindra has seen its denial rate for H-1B petitions jump from 4% to 41%, Tata Consultancy Services from 6% to 34%, Wipro from 7% to 53% and Infosys from just 2% to 45%.
12 companies that provide professional or IT services to other US companies, including Accenture, Capgemini and others, had denial rates of over 30% through the first three quarters of fiscal 2019.
The denial rate for H-1B petitions for continuing employment was also high for Indian IT companies.
For Tech Mahindra, it increased from 2% to 16% during the same period, while that of Wipro increased from 4% to 19%, and Infosys from 1% to 29%.
On the other hand, the denial rates for H-1B petitions for continuing employment among major American companies were low -- Amazon (from 1% to 3%), Microsoft (remained at 2%), Intel (from 1% to 3%), Apple (remained at 1%) and for Google, it increased from 0.4% in 2015 to 1% in 2019.
'A key goal of the Trump administration -- achieved through memos and policy changes -- has been to make it more difficult for well-educated foreign nationals to work in America in science and engineering fields,' the foundation said.
In response to being unable to hire high-skilled foreign nationals, US companies have increased their hiring overseas, which causes more innovation by foreign nationals to take place in other countries, benefiting those nations, the think-tank said.
H-1B visa restrictions, such as those now being implemented by the administration, push jobs outside the United States and lead to less innovation in America, it said.