No shortage of STEM workers in U.S., study finds

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shira

Diamond Member
Jan 12, 2005
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America has a woeful shortage of workers educated in science, technology, engineering, and mathematics (STEM), right? The shortage is so bad that tech companies simply MUST look offshore for qualified workers, and the U.S. really, really needs to increase the number of worker visas (H-1Bs) it issues annually. This demand couldn't possible be motivated by greed-head companies, disingenuously trying to hire foreign workers for 20% below market salaries. I mean, if there weren't actually a severe shortage, then it wouldn't be the case that pretty much any American STEM-educated worker seeking a job can find one without any problem at all . . . NOT!

Well guess what, there isn't a shortage. And those H-1B visa holders - earning 20% less than equivalent American workers (even though that discrepancy is illegal) are indeed displacing American STEM workers, who are in fact having a very, very difficult time finding jobs.

Maybe it is greed-head companies looking for cheap labor after all.

http://www.washingtonpost.com/busin...cea-11e2-a8b9-2a63d75b5459_story.html?hpid=z4

By Jia Lynn Yang, Published: April 24

If there’s one thing that everyone can agree on in Washington, it’s that the country has a woeful shortage of workers trained in science, technology, engineering and math — what’s referred to as STEM.

President Obama has said that improving STEM education is one of his top priorities. Chief executives regularly come through Washington complaining that they can’t find qualified American workers for openings at their firms that require a science background. And armed with this argument in the debate over immigration policy, lobbyists are pushing hard for more temporary work visas, known as H-1Bs, which they say are needed to make up for the lack of Americans with STEM skills.

But not everyone agrees. A study released Wednesday by the left-leaning Economic Policy Institute reinforces what a number of researchers have come to believe: that the STEM worker shortage is a myth.

The EPI study found that the United States has “more than a sufficient supply of workers available to work in STEM occupations.” Basic dynamics of supply and demand would dictate that if there were a domestic labor shortage, wages should have risen. Instead, researchers found, they’ve been flat, with many Americans holding STEM degrees unable to enter the field and a sharply higher share of foreign workers taking jobs in the information technology industry. (IT jobs make up 59 percent of the STEM workforce, according to the study.)

The answer to whether there is a shortage of such workers has important ramifications for the immigration bill. If it exists, then there’s an urgency that justifies allowing companies to bring more foreign workers into the country, usually on a short-term H-1B visa. But those who oppose such a policy argue that companies want more of these visas mainly because H-1B workers are paid an estimated 20 percent less than their American counterparts. Why allow these companies to hire more foreign workers for less, the critics argue, when there are plenty of Americans who are ready to work?

The EPI study said that while the overall number of U.S. students who earn STEM degrees is small — a fact that many lawmakers and the news media have seized on — it’s more important to focus on what happens to these students after they graduate. According to the study, they have a surprisingly hard time finding work. Only half of the students graduating from college with a STEM degree are hired into a STEM job, the study said.

“Even in engineering,” the authors said, “U.S. colleges have historically produced about 50 percent more graduates than are hired into engineering jobs each year.”

The picture is not that bright for computer science students, either. “For computer science graduates employed one year after graduation . . . about half of those who took a job outside of IT say they did so because the career prospects were better elsewhere, and roughly a third because they couldn’t find a job in IT,” the study said.

While liberal arts graduates might be used to having to look for jobs with only tenuous connections to their majors, the researchers said this shouldn’t be the case for graduates with degrees attached to specific skills such as engineering.

The tech industry has said that it needs more H-1B visas in order to hire the “best and the brightest,” regardless of their citizenship. Yet the IT industry seems to have a surprisingly low bar for education. The study found that among IT workers, 36 percent do not have a four-year college degree. Among the 64 percent who do have diplomas, only 38 percent have a computer science or math degree.

The bipartisan immigration plan introduced last week by the so-called Gang of Eight senators would raise the number of H-1B visas, though it would limit the ability of outsourcing firms to have access to them. Tech companies such as Facebook and Microsoft have fought hard to distinguish themselves from these outsourcing companies, arguing that unlike firms such as Wipro, they’re looking for the best people, not just ones who will work for less.

But some worry that the more H-1Bs allowed into the system, the more domestic workers get crowded out, resulting in what no one appears to want: fewer American students seeing much promise in entering STEM fields.
 

Farang

Lifer
Jul 7, 2003
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As a former recruiter I would be interested to see the actual study and how they arrived at their conclusions.

A STEM graduate, like many other graduates, may not immediately find work because the shortages are mainly in sr. level positions that require more knowledge/experience.

There is also a litany of IT-related degrees.. for example a "Software engineering" graduate from India may be more in demand than a "IT Systems" graduate from the University of Phoenix.

The high numbers of tech workers without a degree does not signal a lack of need for educated workers. It is a technical skills-based position so even sr. engineers may be self taught rather than having obtained a formal education.

The biggest victims of the H1b system are the immigrants. The H1b holding agencies take a huge portion of their salary, and unlike recruiting agencies (which I can defend), I can't really defend H1b agencies. They hold the worker's visa so the worker must accept any assignment given to them or else leave the country.

In my experience the bill rates for consultants, H1b or otherwise, are often similar. On average the H1b rates will be lower but on average the H1b workers will not have the same level of technical skills as an American educated, experienced worker.
 

Merad

Platinum Member
May 31, 2010
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There's also the problem that a ton of companies want to hire massively qualified people and don't want to pay for it.

Just yesterday my school sent out an email about an opening for an entry-level developer position at a company in my home town.

The required qualifications are:
4 year CS or CIS degree
ASP.NET experience with C# and VB.NET
Extensive knowledge of HTML5, CSS 3.0, Javascript, jQuery, AJAX and MSSQL
Photoshop & graphical design knowledge
MSIIS knowledge

Desired skills:
SAP experience
iOS development experience
SEO skills

Knowing the area and company that posted this position I'd be very surprised if the job pays more than $40-45k. If even that.
 

ichy

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Oct 5, 2006
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The whole H1B system is a bullshit scam designed to push down wages. If companies want a foreign worker's skills they should sponsor him for a green card. Make those easier to get for skilled workers and abolish the H1B indentured servitude program.
 
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