Donald Trump H-1B fee rule: How many jobs will be impacted per month? Report reveals
&imwidth=600&imheight=450&format=webp&quality=medium "Donald Trump H-1B fee rule: How many jobs will be impacted per month? Report reveals")
The US is the biggest market for the Indian IT industry. Photograph: (AFP file)
Donald Trump H-1B fee rule: The new rule comes amid a downturn in the US job market, with just 29,000 jobs added monthly over the past three months.
The Donald Trump administration's move to impose a hefty $100,000 fee on new H-1B visa applications will likely cut 5,500 jobs every month. Even though it is a small figure compared to the US job market, Indian workers may be the worst-hit, said a report.
The US is the biggest market for the Indian IT industry. These companies send several employeesevery year for on-site projects. This new rule will make sending Indian workers abroad less cost-effective than hiring locals, eliminating the need to secure H-1B approvals.
JPMorgan Chase & Co.'s economists said that computer-linked job roles constitutedtwo-thirds of H-1B approvals in FY24. Around 71 percent of the applications that were approved were of Indians.
65,000 H-1B applications last year were processed abroad. These are the most vulnerable jobs.
This rule will reduce work authorization for immigrants by up to 5,500 per month. They can, however, try getting employment through other visa categories.
Donald Trump's $100,000 rule
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Loujaina Abdelwahed, senior economist at Revelio Labs, told Business Standard that the fee hike is tantamount to dismantling the H-1B system, which can potentially eliminate around 140,000 new jobs in the long run.
The new rule comes amid a downturn in the US job market, with just 29,000 jobs added monthly over the past three months.
Meanwhile, Donald Trump's policy also came under criticism in the United States.
California Attorney General Rob Bonta told Bloomberg that the move would hurt the US state, which depends on the H-1B programme.
He said the state might challenge the rule if it finds it illegal.
He said his office is examining whether the visa fee violates the Administrative Procedure Act.