Study shows losses in the business sector due to immigration restrictions

The Brookings Institution is a nonprofit organization that conducts in-depth research on public policy to propose strategies to overcome problems and crises.

This institution recently released a study called “An executive order worth $100 billion – The impact of an immigration ban’s announcement on Fortune 500 firms valuation”

This research reveals repercussions of restrictions implemented by the Trump administration on business immigration during the health crisis caused by the global coronavirus pandemic.

Do you need help with a business immigration case? Take experts’ advice and protect your future.

What are current restrictions on business immigration?

In June 2020, the White House released a presidential proclamation, stating that most employment-based visas will not be available until 2021 (some restrictions have already been lifted).

With this, we refer to H-1B visas for highly qualified foreign workers and L-1 visas for inter-company transfers. These work permits are used by local businesses that benefit greatly from foreign workforce.

The Trump administration states that this restriction helps to protect the employment of American citizens, incentivizes companies to hire local staff, and safeguards essential resources to overcome the current crisis.

Adding to that, President Trump assures that foreign workers reduce possibilities for the American population because companies tend to pay them lower wages, which increases local unemployment rate.

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Research results

The Brookings Institute took market valuation information from Fortune 500 companies and analyzed stock returns before and after President Trump’s executive order, which substantially restricts business immigration.

For a better understanding, the Fortune 500 refers to a list published annually by Fortune magazine. This list shows the 500 largest companies in the US (depending on their turnover), which have open capital for investors. Fortune 500 firms rely heavily on the talent of highly skilled foreign workers.

Therefore, the study reveals that there was an economic loss of approximately $100 billion as the market valuation of these companies decreased by 0.45% the day after the Trump administration implemented the restrictions.

Adding to that, companies’ performance remained low for 10 days after the executive order, showing that these restrictions will have even worse long-term repercussions.

The study concludes that “restricting the entry of temporary foreign workers to the U.S. negatively affected the valuation of 471 publicly traded Fortune 500 firms (…) These results also inform the current ongoing policy discussions surrounding H-1B visas in particular.”

Follow experts’ advice for your immigration case

The US is experiencing a crisis unprecedented in recent history. By this, we mean that it is not only a health crisis, but also a political, social and economic crisis.

Therefore, if you plan to start an immigration journey, we recommend for you to seek reliable help from experts, who are up to date with current immigration policies and can guide you towards the success of your application.

If you have any questions about an immigration issue or relating to a case you may have currently in progress, then please don’t hesitate to contact us for a FREE Phone Consultation with one of our expert immigration attorneys.

Simply call Motion Law today at: (202) 918-1799.