Current Policies Might Drive Businesses Out of the US
Current restrictions on work visas
In one of our most recent articles, we mention the latest presidential proclamation declaring a series of restrictions implemented on work visas in the US.
Broadly speaking, the issuance of most work visas by the US Citizenship and Immigration Service (USCIS) is suspended until 2021.
In the opinion of President Trump, these restrictions on work visas greatly benefit the US for multiple reasons.
Let’s see some of them:
- Due to the massive outbreak of Coronavirus in the US, the unemployment rate grew exponentially and even reached a higher figure than during the Great Recession, which took place between 2007 and 2009.
Thus, President Trump declares that denying work visas to foreigners protects available jobs and helps reduce the current unemployment rate. - The Trump government ensures that foreigners use local resources excessively and exhaust public benefits that are essential to overcome the health crisis.
- The current administration is of the opinion that the wages offered to foreign workers are normally higher than those offered to American citizens. Therefore, companies that are still active despite the economic crisis should offer these wages only to the local population.
For these and other reasons, the current US government banned the issuance of visas for specialized foreign workers, except for jobs that are essential to the food supply chain.
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These restrictions could force companies to leave the US
According to a recent report by The Economic Times, “Restrictions by the United States on skilled immigration are likely to result in more offshoring”.
This means that multiple companies have already announced that they are analyzing the possibility of moving their companies to countries such as Canada, China and even India.
There are several reasons why local companies could move their services to other countries:
- For a local business to apply for a work permit to bring qualified foreigners, it must demonstrate that there are no appropriately trained local staff available to fill the job position.
Thus, many companies have reported a shortage of workforce due to current restrictions on work visas. - A large number of local businesses depend on foreign investors who come to the country annually and invest in American companies.
Therefore, without the presence of foreign investors, the growth of local companies slows down. - Without foreign workforce, several sectors of the North American market cannot supply the needs of the local population.
This has caused much controversy in the US because this is a country known internationally for the quality of production and work and because thousands of local companies benefit greatly from foreign workforce.
Apart from that, the Trump administration has already received several lawsuits against the current restrictions on work visas and the case may go to a local court due to the social controversy it generates.
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