Friday, July 05, 2013

Is Silicon Valley's immigration agenda gutting the tech industry's middle class?

The kicker:
Callahan says that there may be a surplus of American IT workers looking for employment, but that’s because their skills don’t match up with today’s marketplace. "A lot of folks looking for work are older professionals. As the infrastructure of tech companies increasingly moves to the cloud, these positions have dried up. You don’t need a big IT staff to get a company to global scale anymore."
I can attest to this personally. Due to the way software and updates are distributed these days, the days of needing a lot of "on the ground" tech staff are numbered. One person with a comprehensive system in place can do what used to be done by 4 or 5 people.

Remember I've been talking about the future of [un]employment for a while now. And recently. Lastly:

How can both of these things be true at the same time? The answer reflects a larger trend in the American labor market: an increasing gap between the top earners and everyone else. In Silicon Valley, elite programmers are in high demand, fought over by employers who pay six- and seven-figure salaries on top of generous stock grants. It's understandable that these companies would spend money lobbying Washington for more access to premier talent.


But in the broader IT market, the environment is more like manufacturing, with less-skilled Americans being replaced by cheaper foreign labor. The largest employers of H1-B workers aren’t firms like Facebook and Microsoft, they are actually outsourcing companies like Infosys, Tata, and Wipro. These companies account for around half of the annual H-1B workers, and the majority of their employees are overseas, according to a recent report from Computerworld. The study found that less than three percent of H-1B workers apply for permanent residency. Most learn the job, then leave to continue the job from their home country.