(What’s Left of) Our Economy: Tech’s Cheap Labor Quest Just Got More Brazen & Fact-Free

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(What' Left of) Our Economy, Bloomberg.com, CCP Virus, Cheap Labor Lobby, CompTIA, coronavirus, COVID 19, H1B, immigrants, Indeed Hiring Lab, information technology, job openings, Jobs, labor shortages, recession, tech, tech jobs, U.S. Chamber of Commerce, unemployment rate, visas, Wuhan virus

Just went you think that many major U.S. business groups and their members couldn’t get any greedier or out of touch or both, check out this news on the immigration front: Some of the biggest of these organizations, containing most of the country’s most gigantic companies, have just sued the Trump administration seeking to freeze or block visas for immigrant workers in various job categories.

In other words, they’re trying to swell the American workforce with foreign workers at a time when literally tens of millions of Americans who want them can’t find jobs. And adding insult to injury, in the midst of this jobs-pocalypse, these companies are justifying their demands by claiming they face labor shortages. The obvious objective: pump up the national supply of workers, and thereby drive down the price – i.e., wage – these workers can command.

Worse, their contentions that they can’t find the employees they need continue to include the tech sector, even though the U.S. economy’s CCP Virus-induced downturn has been so bad that it’s spurring major job-shedding even in those industries and occupations. (The final word in the previous sentence is meant to remind that many non-tech businesses employ workers with tech specializations.)

According to the one of the major plaintiffs, the U.S. Chamber of Commerce,

“Our lawsuit seeks to overturn these sweeping and unlawful immigration restrictions that are an unequivocal ‘not welcome’ sign to the engineers, executives, IT [information technology] experts, doctors, nurses and other critical workers who help drive the American economy.”

Indeed, the plaintiffs insist that these kinds of workers are currently so scarce in the United States that if the restrictions remain in place, they’ll need to secure them by investing more in their foreign operations.

These shortage claims, whether involving labor or skills, are anything but new, and have been bogus even in good economic times – as proved in devastating detail by this recent Bloomberg.com analysis of the tech sector’s longstanding drive to import more workers under the H1B visa program. Thus you should be Laughing Out Loud at the notion that the human assets companies need simply don’t exist in the 50 states during American economy’s worst stretch since the Great Depression of the 1930s.

But the shortage-mongers (who I like to call collectively the Cheap Labor Lobby, since) aren’t only fighting common sense, or even simply a U.S. President’s broad authority to control foreign entry into the country. They’re fighting the data.

For example, CompTIA, which describes itself as “the world’s leading tech association,” reports that information technology “occupations in all sectors of the [U.S.] economy declined by an estimated 134,000 jobs” between June and July. And although the organization judges that such employment is up by more than 203,000 since the CCP Virus broke out in America, the 4.4 percent tech unemployment rate it cites – however much lower than the economy -wide jobless rate – is still much higher than the 1.3 percent it estimated in July, 2019.

In addition, the widely followed consulting firm Indeed Hiring Lab has found that between mid-May and late July, “tech job postings have trended below overall job postings” in the United States, and as the graph below shows, the gap is getting much wider. Also clear: Since mid-May, these tech job postings have been stagnant at this very low level.    

The information technology sector of course has long been one of the U.S. economy’s biggest bright spots, so far be it for this tech dinosaur to offer it advice. But I still can’t help but wonder how much better it could do if it didn’t spend so much time spreading misinformation about the country’s labor markets.

Following Up: Mercury News Treats H1B Debate as Non-News

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Following Up, H1B, immigrants, Immigration, journalism, Mercury News, Neil Chase, Norman Matloff, Ro Khanna, Silicon Valley, tech, tech workers, workers

The story of the video of a major debate on U.S. immigrant tech worker policies that earlier this week looked like it was being kept under wraps now looks like the story of a video that never was – due to some astonishingly unenterprising journalism from the Mercury News, Silicon Valley’s main newspaper and therefore a leading source of information on the technology industry.

As RealityChek regulars know, the story began with a June 1 debate in Silicon Valley centering on the controversial H1B immigrant visas. Squaring off were the Valley’s new Democratic Member of Congress, Ro Khanna and Norman Matloff, a professor of computer science at the University of California, Davis. (A tech entrepreneur took part in the event, too, but in a minor way.)

Technology companies claim that the H1B and similar programs are crucial to accessing the world’s best talent. Critics charge that they’ve overwhelmingly been used to cut their costs by replacing native-born U.S. workers with much cheaper foreign counterparts. Khanna favors relatively modest changes to H1B policies; Matloff believes major surgery is needed.

Matloff, who’s become a valued friend of mine, has written that the event marked  the first time a debate has been held between an elected official and a researcher on the topic, a major event in that sense. (Khanna has not disagreed.) Matloff also noted that a videographer from the Mercury News was present and apparently recording the proceedings.

Yet the Mercury News failed to cover the debate and never posted a recording on its website. Matloff asked a reporter on the paper to find out why, and was told that a recording existed, but that “it was essentially scrapped as a standalone report, but there’s apparently a possibility that parts of it will be used in coverage of Rep. Khanna. Not sure the reason(s) for this…” Matloff then speculated that the paper failed to make the video public because Khanna performed poorly – leading the Mercury News, which editorially has sided with the tech industry on H1B and related issues, to consign it to non-event status.

I emphatically agreed that the video’s import deserved to see the light of day, and last Sunday urged the Mercury News to post it both to perform a public service on a major technology policy area and to affirm its journalistic chops. Gratifyingly, the post and follow-up tweets prompted Khanna readily to agree, and to call openly for the video’s posting. (For the record, he contends that it was Matloff who was highly ineffective.)

Two days later, Matloff and I got answers from Mercury News editor Neil Chase. In the version he sent Matloff, he wrote, “We had a photographer there who captured some still photos and some video for use with a future story, but we didn’t attend with the intention of taping the full debate and did not.”

Based on information Matloff had shared with me and my own journalistic experience, yesterday, I sent Chase the following email. I had hoped to get a response from him in time to prepare this post, but no such luck yet:

Dear Neil,

Many thanks for your comment to my blog and my apologies for the short delay in responding.  

I must confess, though, that the response leaves me somewhat mystified on two counts.

First, the statement that the Mercury News videographer did not “record the whole event” doesn’t track with an email from one of your reporters, Ethan Baron, to Matloff.  Baron said, in response to the latter’s query re the video’s availability, “it looks like the video was essentially scrapped as a standalone report, but there’s apparently a possibility that parts of it will be used in coverage of Rep. Khanna.”  Granted he’s conveying some uncertainty here. But Matloff also has written in his blog that “the videographer seemed to be taping continuously.”  In addition, Matloff noted that “the video cam [was] on a high tripod, seemingly much for an occasional clip.”

Similarly, it sounds odd, as your email indicates, to give the videographer the responsibility for choosing the portions of the debate to be shot.  Was this the case?  If so, what were the criteria used to determine what was captured?  Or were they simply taken to get a bit of file footage of each participant, irrespective of what they were saying at the time?  

Second, I certainly don’t mean to tell you how to do your job.  But as someone with a journalistic background, I’m hard pressed to understand the paper’s seemingly offhand attitude toward this event.  After all, the H1B issue has been described as crucial by the dominant industry in the region served by the Mercury News, and it’s surely of comparable importance to all your tech worker subscribers.  The new Congressman from your area, Rep. Khanna, has been touted by several national publications as a rising star in the Democratic party, and possibly all of national politics.  To his credit, he was willing to appear in public with an outspoken, prominent critic of the H1B and related programs – a rare event at the very least, according to Matloff.  And of course, H1B and other immigration issues have become even greater controversies nationwide since the last presidential campaign heated up.  So from all appearances, the leading paper of Silicon Valley would be expected to view the debate was highly newsworthy from the get-go.  And yet it seems from your email that no coverage was ever planned.  

Now it’s clear that some fur was flying at the event, and that Rep. Khanna and Matloff are begun feuding in public over what was said and over their qualifications to claim expert status on the issue.  I.e., because of this aftermath, their debate has become by any reasonable definition even more newsworthy.     

So I respectfully make the two following requests:

1. Would you check whatever video archive you have – including whatever the videographer might possess – to determine conclusively whether a full recording of the debate is indeed available?  (If not, I would hope to find out how it was disposed of, and why.)

2. Would you assign a reporter to cover this emerging Khanna-Matloff dispute — in which a local Congressman who’s increasingly prominent nationally has publicly gone after a critic on an issue that’s one of his top legislative priorities, and a major national concern?  The Mercury News would get an excellent scoop, and perform a valuable public service at the same time.  

Thanks for your consideration, and I look forward to your reply.

Sincerely,

Alan

As per the email, I’m still hoping that the Mercury News finds a recording and shares it, and that it reports on the differences between Khanna and Matloff, which cut to the heart of the debate on H1B and broader questions and arguments concerning the future of the domestic workforce in an age of rapid innovation. At a time when Fake News abounds, it would amount for welcome coverage of some real news.

Following Up: Progress in Freeing the Mercury News H1B Debate Video

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Following Up, H1B, Immigration, Mercury News, Norman Matloff, Ro Khanna, Silicon Valley, social media, tech workers, Twitter

What a day it’s been for RealityChek on Twitter today! Yesterday, I posted on the peculiar failure of the Mercury News, the top newspaper in technology industry center Silicon Valley, to post a video it made of a landmark and apparently heated recent debate on the H1B visa program. Under this controversial feature of U.S. immigration policy, American employers can secure foreign workers they can demonstrate are needed because they boast special talents that generally can’t be found in the U.S. workforce.  

Thanks to this item, and to some tweets today, I seem to have persuaded the most prominent participant, Rep. Ro Khanna (D.-Cal.) to ask the paper to release the full version.

Another participant in the event, University of California, Davis computer science professor Norman Matloff, had already made such a request, but got a “Thanks, but no thanks”-type answer.

So this morning, I decided, via Twitter, to ask Khanna to join the campaign. It was great to see him respond, and after a few tweets back and forth, at about 1:45 PM EST, he declared, “I have told them [the Mercury News] I would welcome the release of the tape if they have one. I would love for this to be public. I’m all for transparency.” So let’s hope that a request from a Member of Congress will do the trick. And let’s also hope that the paper still has the video!

I’ve asked Khanna to let me know the Mercury News‘ answer as soon as he can, and of course, I’ll pass the word on to you – ideally with a link – right away. And FYI, you can get in on this kind of action first-hand yourself by following me at @AlanTonelson. As with RealityChek, feedback is always welcome, and that includes heavy doses of snark!

P.S. Just for a bit of context, a major point of contention between Khanna and Matloff is a bill sponsored by Democratic Senator Dick Durbin of Illinois and Republican Senator Chuck Grassley of Iowa that attempts to address H1B-related problems.  Khanna is another sponsor of the legislation; Matloff considers its remedies inadequate.

Im-Politic: Free the Mercury News H1B Debate Video!

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H1B, H1B visas, Im-Politic, immigrants, Immigration, media bias, Mercury News, Norman Matloff, Ro Khanna, Silicon Valley, technology companies, technology workers, Voice of America, wages

There’s been no shortage of controversy stirred up by the H1B visa program that brings immigrants to the United States to take jobs allegedly requiring special talents – mostly in technology companies. So when what could well have been the first public debate ever that centers on this subject is held that included a researcher on the visas (who has charged that they overwhelmingly go to foreign workers who simply lower wages for companies who want to replace more expensive Americans) and a politician who’s been strongly in favor, you’d think a major newspaper would find that pretty newsworthy.

In the case of the Mercury News, however, you’d be wrong. And much worse, it looks like the San Francisco Bay area daily is keeping a video of the event under wraps because it makes the politician – whose views closely mirror the paper’s pro-H1B editorial stance – look absolutely terrible.

Here’s the skinny on the event. Precisely because there’s no recording available, I’m relying on this account from participant Norman Matloff, a computer science professor at the University of California, Davis, a leading national authority on immigration issues and the H1B program in particular, and a strong critic of the latter. Joining Matloff on a panel convened at the newly opened offices of the Voice of America’s Silicon Valley bureau were freshman Silicon Valley Congressman Ro Khanna and Kamran Elahian, who Matloff describes as “an immigrant tech entrepreneur.”

According to Matloff, most of the H1B exchanges took place between him and Khanna, who has been characterized in the press as “the favorite of the tech industry since he tried to first overtake incumbent Mike Honda in the 2014 election” in large part because of his defense of the domestic tech industry’s H1B practices.

As Matloff describes it, Khanna – who has also been described in the national media as a rising Democratic party star and champion of pragmatic fixes for economically besieged middle class Americans – was stunningly ignorant about recent H1B-related news developments. More troubling: Khanna sunk to thinly disguised personal (and completely unjustified) attacks on Matloff and several times seem to have flown off the handle when presented with evidence that clashed with his preconceived ideas.

I’d say “Don’t take my (or Matloff’s) word for it; see for yourself” – but I can’t. The debate was filmed by the Mercury News, but in response to a query from Matloff about whether the video would be posted, a reporter he knew at the paper told him that

“it looks like the video was essentially scrapped as a standalone report, but there’s apparently a possibility that parts of it will be used in coverage of Rep. Khanna. Not sure the reason(s) for this, but I know videos of such events are often just used in bits and pieces…”

As Matloff noted in an email to me, “Certainly it would have cost the Merc nothing to put the video on the Web, quite easily and simply.” And it’s hard to disagree with his judgment that the paper “would be performing a major public service by placing the video online (in full, of course).”

So it’s necessary to take seriously Matloff when he speculated, in that same email to me: “I can certainly see the Merc wanting to protect Rep. Khanna. They had endorsed Khanna, and generally feel their loyalty is to the tech industry. Their coverage of H-1B has been fair, but their editorial position has always been pro-H-1B.”

Matloff’s views are hardly dispositive – though I have always found him to be scrupulously honest. What could not be clearer, however, is that the Mercury News could reenforce its claims to objectivity by posting the video. With every passing day that it fails, the case for questioning its motives can only grow.

Glad I Didn’t Say That! No More Excuses for the H1B Visa Tech Immigrants Program

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Ananya Bhattacharya, Glad I Didn't Say That!, H1B, immigrants, immigratiion, innovation, Jobs, Qz.com, tech workers

“Trump’s crackdown on H-1B visas could prevent the next US unicorn born of Indian immigrants”

–Ananya Bhattacharya, Quartz India, February 5, 2017

Share of Indian engineering graduates capable of writing “the correct logic for a program, a minimum requirement for any programming job”: 4.77%

–Ananya Bhattacharya, Quartz India, April 20, 2017

(Sources: “Trump’s crackdown on H-1B visas could prevent the next US unicorn born of Indian immigrants,” by Ananya Bhattacharya, Quartz India, Februay 5, 2017, https://qz.com/900729/trumps-crackdown-on-h-1b-visas-could-prevent-the-next-us-unicorn-born-of-indian-immigrants/ and “Fewer than 5% of engineers trained in India are cut out for high-skill programming jobs,” by Ananya Bhattacharya, Ibid., April 20, 2017, https://qz.com/964843/less-than-5-of-india-engineers-are-cut-out-for-high-skill-programming-jobs/)

Im-Politic: Sadly Poetic Justice for California Open Borders Enthusiasts

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ACA, Affordable Care Act, border security, California, Disney, H1B, illegal immigrants, illegal immigration, Im-Politic, Immigration, Norman Matloff, Obamacare, Open Borders, San Francisco, Sanctuary Cities, tech workers, University of California

As I’ve mentioned previously, computer scientist Norman Matloff is a great source of information and analysis on immigration issues – and especially on the visa system that lets businesses replace high paid domestic tech workers with low-paid foreigners. Late last week, the University of California-Davis professor once again showed his chops. Thanks to him, I learned about a stunning instance of poetic justice for a leading national center of Open Borders policies and enthusiasm.

Surely everyone knows by now that, as a municipality, San Francisco is proud to be one of America’s most ardent cheerleaders and enablers of dangerously permissive immigration policies. Its sanctuary city status directly resulted in the murder of a young woman by an illegal immigrant criminal that it released from custody rather than comply with an extradition request from the federal government. And of course the entire Bay Area’s zeitgeist is strongly influenced by the Silicon Valley tech companies whose profits depend heavily on continually driving down labor costs by hiring relatively young and extremely cheap immigrant programmers and the like and getting rid of older, more expensive native-born employees.

In addition, these descriptions also apply to the entire state of California – which has been charged with moving ever closer to become a full-fledged sanctuary jurisdiction.

So although it’s always unfortunate when someone loses a job, some smirking is surely understandable in response to the news – summarized in this September 8 post by Matloff – that the University of California’s San Francisco branch is pink-slipping 80 of its tech workers and some of the vacant positions will be filled with H1Bs supplied by an Indian outsourcing company. Worse, at least some of the cashiered employees at this public university believe they will need to train their imported replacements – as with a widely publicized case involving the Disney Corporation two years ago.

As made clear in this comprehensive account, the university’s decision could well spread throughout its numerous branches and potentially affect thousands of tech workers. And as Matloff explains, these government tech workers

“are highly sophisticated, aggressive people who know how to pull strings. It becomes especially important in light of UC’s generous defined-benefit pension plan. If someone has worked, say 10 years, at UCSF and had planned to work 25, they are having enormous future pension sums snatched away from them. So it’s real money” they’ll be losing.

A final point worth considering. According to the executive in charge of information technology services at the University of California-San Francisco:

“the campus is facing ‘difficult circumstances’ because of declining reimbursement and the impact of the Affordable Healthcare Act, which has increased the volume of patients but limits reimbursement to around 55 cents on the dollar….”

California, of course, is a major Democratic Party stronghold, in part because its (immigrant happy) public employee unions are so enormous and so powerful. I wonder how many more state university workers will be replaced by immigrants – and how long it will take the broader state government to adopt these practices – before the Golden State’s politics begin to change.

Im-Politic: The New York Times Loses It on Trump and Immigration

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2016 elections, deportation, Donald Trump, E-Verify, H1B, ICE, illegal immigration, Im-Politic, Immigration, Immigration and Customs Enforcement, Jobs, Republicans, September 11, tech workers, The New York Times, visa overstays, visas, wages

The New York Times‘ recent editorial trashing of Donald Trump’s immigration proposals was so over the top and intellectually dishonest that you’d think the paper’s editorial board members and owners’ main worry was losing access to the super-cheap illegal nannies and gardeners that support their one percent-er lifestyles. Certainly nothing else about Trump’s policies can possibly justify the vehemence with which The Times attacked him.

Predictably, the editorial focused on Trump’s position on deporting America’s huge illegal immigrant population, and the related issue of birthright citizenship. Trump does deserve some criticism on this score. As I’ve argued, aside from criminal aliens, he should be focusing not on active deportation but on a policy of attrition – discouraging illegals from remaining in the country by denying them both employment opportunities and government benefits. And although I agree with Trump (and many others) that the anchor babies problem is unacceptable, it does seem that Constitutional issues will prevent any solution for many years.

But as I’ve also pointed out, mass deportation wasn’t even a part of Trump’s plan, although he did endorse the idea in a media interview. Completely indefensible, by contrast, is the paper’s charge that every plank of Trump immigration platform is “despicable,” “cruel,” “racist,” and “xenophobic.” If anything’s despicable, its much of The Times’ own tendentious analysis.

Take the editorial’s treatment of Trump’s call to make mandatory the E-Verify system that was developed to enable employers to check the legal status of job-seekers. It’s currently a crime for businesses to hire applicants residing illegally in the country, but many illegals find work anyway largely because the documents needed to prove legal status are so easy for forge, and because so many businesses simply don’t care and believe that the government really doesn’t, either.

E-Verify is a federally created “internet-based system that compares information from an employee’s Form I-9, Employment Eligibility Verification, to data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility.” The good news is that it’s free to use, it produces results quickly, and its accuracy rates are not only astronomically high, but improving, according to independent auditors of this program. Moreover, E-Verify enjoys overwhelming bipartisan Congressional support. The only significant problem associated with it is that in most of the country, its use is voluntary.

So here’s how The Times characterizes Trump’s view that every U.S. employer should be brought into E-Verify to ensure that a law that’s on the books, and that the paper apparently does not oppose, is effectively enforced: It would “impose a national job-verification system so that everyone, citizens too, would need federal permission to work.”

Only somewhat less inane is The Times‘ description of Trump’s plan to “triple the number of [immigration enforcement] officers”: It would “flood the country with immigration agents….” What the paper doesn’t tell readers is that this “flood” would amount to 10,000 new employees for the Enforcement and Removal Operations branch of the Homeland Security Department’s bureau of Immigration and Customs Enforcement (ICE). Talk about crying wolf.

Also falling into The Times‘ category of “despicable” Trump proposals:

>ending the phony “catch-and-release” practice applied to illegals crossing the border and detaining them until they are sent home;

>establishing criminal penalties for legal visitors to the United States who overstay any of the wide variety of visas offered by Washington (a group that has included at least two of the September 11 hijackers);

>stepping up ICE’s cooperation with local law enforcement authorities to increase the chances that illegals belonging to criminal gangs will be deported;

>and addressing employer violations and other abuses of the H-1B visa system for workers supposedly possessing special skills in technology or other areas, practices which needlessly cost American workers both jobs and wages;

The Times of course wasn’t content to savage Trump. It castigated other GOP presidential hopefuls who haven’t repudiated all of his proposals for “racing to the bottom” on immigration. But if the paper’s editorial writers are looking for demagogues on immigration, they should try a mirror instead.

(What’s Left of) Our Economy: A Must-Read Voice on Immigration Policy

Tags

H1B, Immigration, Norman Matloff, technology, {What's Left of) Our Economy

Careful readers of RealityChek may have noticed that I’ve just added a new blog to my recommended list: Norman Matloff’s “Upon Closer Inspection.”

For more than 20 years, Norm has established himself as one of the sanest and best-informed American voices on the always vexing, emotional subject of immigration policy. He comes at the issue from a somewhat unusual position — a professorship of computer science at the University of California at Davis. His first-hand observation and later rigorous study of the rapidly evolving job market in U.S. high tech industries turned him into a trenchant critic of the H1B visa program. This aspect of U.S. immigration policy has ensured American technology firms an ever-growing supply of skilled but bargain basement labor from countries like India at the expense of native-born workers and domestic wages.

As a result, Norm first gained reknown for his thorough debunking of self-serving claims by U.S. tech firms and their paid lackeys that the nation faced a potentially crippling shortage of science and technology workers that could only be filled from overseas. His research has also been crucial in exploding the myth that most of the H1B immigrants were tech geniuses whose arrival would ensure that America continued to lead the world in the competition for premium talent.

Norm’s work originally came to my attention when I was working on my own book, The Race to the Bottom. His findings made clear to me that high tech immigration policy was in many ways the flip side of high wage and high tech job offshoring. In addition to sending many of America’s best-paying and most productive jobs to low-wage developing countries, many multinationals were also bringing this third world labor to the United States. And these practices stemmed from the same shortsighted cost-cutting rationale that’s wound up inflicting such long-term damage on the domestic economy, and especially its genuinely productive sectors.

Thanks to Norm’s research, I was also introduced to a huge body of evidence challenging the long-standing and widely swallowed proposition (even by liberal Democrats like Bill Clinton) that all America needed to do to maintain its international economic competitiveness was fix its lagging schools. His H1B studies helped document the reality that the United States was far from the only country recognizing the imperative of training its workers for “jobs of the future.” Governments all over the world had also been aiming at re-skilling and re-educating their own workers, including many in the labor-rich developing world, where wages would long remain orders of magnitude below America’s even in these advanced industries.

Norm is also maintaining his long-running immigration e-newsletter, which archives his previous work. It’s well worth visiting regularly, too. Welcome to the blogosphere, friend!