On the other hand, associations representing  employers argue that H-1B workers were not treated differently than U.S.  workers during the economic downturn, and that use of the H-1B program  by employers has decreased substantially. H-1B Beneficiaries Were Approved to Fill a Broad Range of Occupations, and as U.S. Citizen Employment Generally Declined with the Recent Economic Downturn, So Did the Number of H-1B Petition Approvals

H-1B beneficiaries were approved to fill a wide variety of occupations, and  the number of H-1B petition approvals in certain occupations has  generally declined with the economic downturn, along with the  employment levels of U.S. citizen workers in these occupations. In  contrast with patterns in 2000, most H-1B beneficiaries in 2002 were  approved for positions that were not related to IT. Both the number of H-1B petition approvals and  U.S. citizens employed in certain occupations decreased from 2001 to  2002. Despite increases in unemployment among  highly skilled U.S. workers, about two-thirds of employers said that finding  workers with the skills needed in certain engineering and other science- related occupations remains difficult. We contacted 145 employers to discuss issues  related to the H-1B program, and 36, or 25 percent, of the employers  agreed to speak with us. The Extent to Which Wage Is a Factor in Employment Decisions Is Unknown

While a number of employers acknowledged that some H-1B workers  might accept lower salaries than U.S. workers, the extent to which wage is  a factor in employment decisions is unknown. In addition to information systems issues, we also  determined that DHS’s ability to provide information on H-1B workers is  limited because it has not issued consistent guidance or any regulations on  the legal status of unemployed H-1B workers who remain in the United  States while seeking new jobs. DHS Has Incomplete Information on H-1B Worker Entries, Departures, and Changes of Visa Status

DHS cannot account for all the H-1B worker entries, departures, and  changes of visa status using its current tracking systems, because NIIS and  CLAIMS 3 data are not integrated, and data for certain fields in each of  these systems are not consistently collected and entered. As a result, DHS  is not able to provide some key information needed to oversee the H-1B  program and assess its effects on the U.S. workforce. This includes  information on the number of H-1B workers in the United States at any  time, the extent to which these workers become unemployed, the extent  to which H-1B workers become long-term members of the labor force  through other immigration statuses, and the occupations they fill as  permanent members of the labor force. While DHS has long-term plans for providing better  information on H-1B workers, policymakers in the interim need data to  inform discussions of program changes. Employers were selected based on their number of H-1B petition  approvals and occupations for which they requested H-1B workers in  fiscal year 2000.
Why GAO Did This Study

The continuing use of H-1B visas, which allow employers to fill specialty occupations with highly skilled foreign workers, has been a contentious issue between U.S. workers and employers during the recent economic downturn. The H- 1B program is of particular concern to these groups because employment has substantially decreased within information technology occupations, for which employers often requested H-1B workers. In light of these concerns, GAO sought to determine (1) what major occupational categories H- 1B beneficiaries were approved to fill and what is known about H-1B petition approvals and U.S. citizen employment from 2000-2002; (2) what factors affect employers' decisions about the employment of H-1B workers and U.S. workers; and (3) what is known about H-1B workers' entries, departures, and changes in visa status.

What GAO Found

H-1B beneficiaries were approved to fill a variety of positions in 2002, and the number of approved petitions (i.e., employer requests to hire H-1B beneficiaries) in certain occupations has generally declined along with the economic downturn, as have U.S. citizen employment levels in these occupations. In contrast with 2000, most H-1B beneficiaries in 2002 were approved to fill positions in fields not directly related to information technology, such as economics, accounting, and biology. Both the number of H-1B petition approvals and U.S. citizens employed in certain occupations, such as systems analysts and electrical engineers, decreased from 2001 to 2002. GAO contacted 145 H-1B employers, and the majority of the 36 employers that agreed to speak with GAO said that they recruited, hired, and retained workers based on the skills needed, rather than the applicant's citizenship or visa status. Despite increases in unemployment, most employers said that finding workers with the skills needed in certain science-related occupations remains difficult. Although some employers acknowledged that H-1B workers might work for lower wages than their U.S. counterparts, the extent to which wage is a factor in employment decisions is unknown. The Department of Homeland Security (DHS) has incomplete information on H-1B worker entries, departures, and changes in visa status. As a result, DHS is not able to provide key information needed to oversee the H-1B program and its effects on the U.S. workforce, including data on the number of H-1B workers in the United States at any time. GAO also found that DHS's ability to provide information on H-1B workers is limited because it has not issued consistent guidance or any regulations on the legal status of unemployed H- 1B workers seeking new jobs. Allowing unemployed H-1B workers to remain in the United States may have implications for the labor force competition faced by U.S. workers. While DHS has long-term plans for providing better information on H-1B workers, policymakers in the interim need data to inform discussions on program changes.