Leadership

Debunking the IT Shortage Myth

By Nicole Solis

Updated on: August 20, 2007 / 5:45 PM EDT / MoneyWatch

While Microsoft, Google, and Oracle are lobbying Congress to increase the number of H-1B temporary worker visas so they can meet what they describe as a shortage of skilled technology workers, many skilled technology workers who are already in the U.S. are reporting having trouble finding jobs. InformationWeek recently explored the phenomenon, wondering if the issue is more the cost of the workers, rather than their skill sets.

There are a couple of key details the article raises:

If there truly is a shortage of skilled tech workers, salaries should be skyrocketing. Instead, they are stagnating and, in some instances, even declining. In 2005, the median salary for new H-1B computing professionals was $50,000, lower than the entry-level wages of a worker with a bachelor's degree and no professional experience.
If the goal truly is to hire the best minds, why are the majority of H-1B visa applications for the lowest skill level (1 out of 4)?

This situation sets up a vicious cycle: fewer students enroll in technology programs at the university level, presumably because the incentive for U.S. workers (high salaries paid to counterbalance the long hours worked) is gone.

U.S.-based tech companies will need to find ways to cultivate the talent they need in order to stay competitive. Offsetting the higher cost of such talent with cheaper H-1B labor has its benefits, but it also overlooks the role of entry-level jobs as apprenticeships for the innovators of tomorrow.