Technology, Education, Opportunity and the H1B.

    When president Obama recently gave a speech announcing a new high-tech training program, education was highlighted as a part of the solution to the current employment disaster. The basic idea is pretty simple; emphasize so-called STEM (Science, Technology, Engineering, and Math) educational subjects because related fields are where future jobs are likely to be.

    The context of education is somewhat terrible for discussing employment. In truth, neither S, T, E nor M represent an actual job that people get paid to do. Such details make up the content of academic coursework but when education is discussed as a job-creation engine, the jobs themselves remain an abstract out there somewhere in damn-yo-smartville. An academic position as research fellow is quite different than getting paid to grind script in a cubicle - yet both could be characterized as STEM jobs. For employment discussions, STEM education has often been roughly equated to yielding "jobs in tech". While far from a complete list these jobs include: design, engineering, coding, manufacturing, system/db administration and customer support.

    The time investment required for education seems to work against using it as an acute response to unemployment. However, that still leaves the very important question of how technology and education provide for long-term opportunity and job stability. This answer lies in the actual level of opportunity tech jobs represent and just how stable they will continue to be. Are these jobs (or any well-paid jobs for that matter) viable long-term in a globalized economy?

    As with most things in America, there are several views on this. The president presented one view:

    Right now, there are more than four job-seekers for every job opening in America. But when it comes to science and high-tech fields, the opposite is true. The businesses represented here tell me they're having a hard time finding high-skilled workers to fill their job openings. And that's because today only 14 percent of all undergraduate students enroll in what we call the STEM subjects -- science, technology, engineering, and math.

    This rosy-sounding information is sourced directly to a handful of representatives from specific businesses. It is a carefully presented wording that avoids discussion of the larger industry entirely. Another industry insider, Bill Gates, who's company has been known to acquire ~80% of the allocated H1B visas when he wants to shed employees, has this to add:

    I cannot overstate the importance of overhauling our high-skilled immigration system. We have to welcome the great minds in this world, not shut them out of our country. Unfortunately, our immigration policies are driving away the world's best and brightest precisely when we need them most.

    On the flip side, his statement was probably news to the many unemployed (Microsoft) software engineers, database administrators, etc. recently laid off who are having difficulty finding a new job. From this point of view, Dan Rather has posted a few clips and a HuffPo article highlighting his most recent program (transcript .pdf). It takes a closer look at some of the issues in America's tech employment caused by current immigration policy. The article makes this observation in response to Obama's quote:

    That may be true, but recent research shows the number of STEM students graduating each year from U.S. universities far exceeds the number of new jobs.

    And while U.S. corporations decry the shortage of tech talent -- industry data indicates there are upwards of 200,000 tech workers unemployed across the country today. Even with this glut of job-seekers, companies say the talent shortage is SO acute that they are forced to import foreign labor from overseas.

    Rather's program is mainly focused on the negative impacts of the current implementation of H1B visas (and a couple related categories like H2B, etc.). H1Bs are often used to replace vested American workers with temporary workers from overseas - either on a rolling basis or in preparation for the jobs being sent offshore. The tone is somewhat sensationalistic but it is an issue that doesn't get much attention, so I'm pleased to see it highlighted. The video clips are representative of stories I have heard with depressing frequency both in the Northwest and in the Orlando area.

    The transcript itself is really worth some parusal. One interesting part is when an out of work ex-Microsoft employee named Mary pulls up an employment web site in India. Such sites must be browsed in stealth mode because American IPs are usually blocked.

    So I’m now pullling up a site from India where there are a bunch of ads that are posted and every day - I mean, right now there are 155 ads just in this one category alone that are all brand new that have come over, it looks like, in the last couple of days.

    And you’ll see here this one I was able to pull up because I’ve got my stealth mode in here it’s like, “any course, any specialization, graduation not required.” Okay, so is that best and brightest? Oh! Yeah, this ones good. This particular company is looking to hire B1 or B2 visa preferred.[...] So let’s just see what they want. Dot-net. VB, SQL, Windows Development preferred. Not a problem. I guarantee you there’s 50 people around the corner from here who can do that. This is what they lack: they’re American citizens. A qualified American is not eligible to apply.
    [...]
    So this isn't-- has anything to do with, you know, being prejudiced. And I'm not against global competition. What I am opposed to is segregated employment. And our employment situation, with the laws that we have today in place, are disqualifying American citizens for jobs in their own zip code. There is an unlimited supply of people from across the world that come over in this labor arbitrage environment that are cheaper, lowering the salaries for everybody. And-- we're caught in the middle of that whole thing.

    [emphasis mine]

    This brings up a common fallacy about computer tech. College is often not necessary to get a job doing SQL or making web pages or whatever (this is also highlighted in one of the video clips where a woman is required to spend her last month training two completely inexperienced H1Bs to be her replacement). The job mentioned above was for a position writing insurance apps.  In the case of Mary, more education has not helped her find a job at all.

    I hear regularly, "I'm overqualified." And I would go to the resume people at the school and at WorkSource and-- the outsourcing people. I'd say, "What do I do so that I'm not appearing over-qualified for these jobs?" And so I would take whole bunch of stuff off. And-- I was gonna take my MBA off. And that was a big deal to me because I-- worked at night for five years to-- go and-- and get that degree. And it was something that I was really proud of. And the thought that I would have to take it off my resume-- was troublesome to say the least.
    [..]
    If I was on a phone interview or something like that, and they say, “So what have you been doing,” and I tell them, “I was laid off from Microsoft” and then immediately, it changed -- the tone. “Thank you very much.” The people that were laid off were considered damaged goods. And-- it was-- I-- from what I understand people were discouraged from hiring them.
    [..]
    I was out of work for two years. I lost my house. I lost my health insurance. I lost my life savings. I still have my health-- and it was the worst experience of my life. And, you know, standing out and saying that the laws need to change is a big scary thing 'cause I don't want it to happen again.

    Dan Rather contacted Microsoft to inquire why they are sponsoring guest workers when so many local tech workers are looking for jobs. Despite his former loquaciousness on the topic indicating he wanted even MORE guest workers, Mr. Gates refused an interview. Microsoft was kind enough to provide this written statement:

    ”UNFORTUNATELY, MICROSOFT WON’T BE ABLE TO CONTRIBUTE TO THE PIECE YOU’RE WORKING ON, BUT THANK YOU FOR YOUR INTEREST.”

    One of the video clips also provides a glimpse of a related and disturbing trend that deserves mentioning. In this clip (the William Hamman one; having trouble embedding), the gentleman who lost his job was just a couple of years away from retirement. This happens over and over. A company will reorganize and the bulk of positions replaced, consolidated, moved offshore or otherwise eliminated (sometimes by simply renaming the postion) are, amazingly, held by employees who have been with the company long enough to be looking at retirement benefits and salaries representing a career's worth of advancement. It's a hell of a way to treat the people who dedicated careers to building these companies - and an industry.

    If we are looking to tech for the jobs of the future, we need to begin crafting policy to promote and protect those jobs today. None of these issues are even nominally addressed in the border-focused immigration debate currently underway, yet they are crucial for any hope of winning the future™. These jobs are not going to create themselves and employ Americans just because a bunch of people went to school. Tech workers are among the least-protected in the nation. With few unions to speak of, it's pretty much every techie for themselves.

    Finding workable solutions likely won't be easy but we sure aren't going to find them until we begin to look. Hopefully increased media attention will help to provide an opening to include this important issue in the wider immigration and employment discussions currently underway.

    Comments

    It is not easy finding solutions!

    This really really really pisses me off.

    I don't have the links handy but I have read several articles recently concerning the fact that no employers--no big employers--wish to hire anyone that is unemployed. Strange!

    No give us somebody with low expectations or no expectations. Fuck the unemployed.

    Thanks for the links and the blog!


    "What is it you want us to do"

    http://www.youtube.com/watch?v=2Rw5MosKRm4

    How can I love my country when it appears those in control of the counrty want to destoy me?

    Yeah folks WIN THE FUTURE  with BS PHd 

    Bullshite piled higher and deeper   

    "I'm Mad as Hell" and there is nothing we can do.

    Enjoy your passion KGB ....PS  Do you know how to imbed this youtube connection and could you give me a step by step instruction?  The other day someone said I had to have a certain file ext. but I couldnt find one


    It's funny, I had a conversation with a very successful real estate agent who was sponsoring someone to go get computer training. I was gob-smacked - why would you forego your own $300K/year profession to recommend a $40K/year programmer's job?

    I think part of what people are missing is that the new reality has to include business and project skills. Even project management can be easily taught, but not everyone makes a good PM. Engineering management at least gets you above the class, but without strong engineering knowledge, an engineering manager can make some real crap decisions.

    Engineering skills, programming, etc., can all be valuable if turned into serious money-making business. Short of that, they're commodity these days.

    What's not commodity is teamwork, delivery, ingenuity, patentable ideas, first-to-market. Since so many of the competitors in the market are just seeking rent - contracts through name recognition, local access, insider connections.... - it's hard for any technical skill to impact the business relation, and thus no one wants to pay for it. Plus it's easy to find short-term help for tech solutions, or so common wisdom says.

    And so much of the actual work being done is just me-too kind of stuff - just another iPhone or Android app, another bar code reader, another standard social media site. It's extremely hard to introduce quality into these commodity needs - no one will pay unless they see some value differentiation. And when college seniors can code them well enough to not need 10 year veterans, guess what else collapses.

    About 5 years ago I started seeing predictions of "computer analysts" demand increasing while "computer programmer" demand decreased. I'm still convinced it will be field specific knowledge combined with programming/analysis skills that will be in demand long-term, and will retain pay differential, but it's not obvious whether business leaders have a great deal of vision at the moment.

    Clearwire's collapse was one that amazed me - a company gaining new subscribers hand over fist, but they couldn't even manage to roll out their own cell phone. Kind of like newspapers turning into Reuters/AP churn with no internal value - relying on social media tricks and new platforms to save themselves from lack of innovation.

    Somewhere in the 90's it became obvious you didn't have to pay a kid $100K to write just another database app. A million logistics packages out there now, why build your own new one? Search does well enough for most. In 2011 it's obvious that mobile apps are pretty simple (and that the phone networks still suck too badly for people to get too creative).

    In short, the field is getting butchered by the M$ Office effect - if you have a good enough option, you don't re-create. All the fields where we've been putting in effort just don't have enough demand and growth potential to sustain much new unless there's a real demand for it. That might be in medicine, in energy, etc., if there's real promise. We've hit pretty much all the advantage in fast trading machines and seen their limitations.

    Just as I fault liberals for constantly being nostalgic about manufacturing jobs, the 1990's have faded pretty quickly as well. We can talk about basic skills, but no one hires basic skills - they hire a specific exploitable skillset and lay it off or outsource it as quickly as they can. Our industrial policy has to recognize this just as it recognized the effects of cutthoat steel prices and outsourced China manufacturing in the last century. The answer isn't in more GE worship, and much as I'm loathe to accept it, I think it's closer to a Steve Jobs-like appreciation for value, logistics, design and delivery, appreciation for people's wants. Unfortunately, techies usually aren't driving the poor imagination of industry's overpaid CEOs, who are more interested in changing patent/trademark law and bribing Congressman for subsidies than in competing on quality. Unless techies come up with their own ingenuity in their own garages. But with so many garages foreclosed on....

    [KGB - please send me an off-line note at my decader gmail account, would like to discuss a few items of mutual interest based on previous comments]


    The time investment required for education seems to work against using it as an acute response to unemployment.

    Thank you.   Unless Obama failed to take mathematics himself, its perfectly obvious that long-term investment in education is no solution to the unemployment emergency, just as long-term improvement in diet is no solution to an influenza epidemic.  This is a case of Obama exploiting the unemployed as props for the sake of something he was going to do anyway.


     You don't need to find a solution; IT professionals, along with the DOJ, already have. 

    The Department of Justice is recommending that Congress re-write H1-b law, requiring companies to seek local talent first and "to hire any equally or better qualified US workers who apply." They are concerned that "US workers...have been impermissibly replaced by H1-b visa holders and identify employers who may be engaged in a pattern or practice of discrimination against US workers."

    I appeared on Dan Rather Reports 3 months ago, explaining how companies will go to any length, including breaking the law, to avoid hiring Americans for their US job openings.  the link to the video is below.

    We need the American public to get behind Durbin's bill, hopefully out in August, that will fix corporate visa programs.  It will put Americans back to work and end the outsourcing of the "jobs of the future.  Without adding to the deficit!

    Donna Conroy, Director
    Bright Future Jobs
    http://brightfuturejobs.com/dan-rather-visa-loophole/


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