August 14, 2002

H-1B Visa Numbers Announced for FY 2002

The Immigration and Naturalization Service (INS) released the H-1B visa numbers for fiscal 2002 (from October 1, 2001 to June 30, 2002). Employers petitioned for and INS approved 60,500 requests for foreign nationals to be classified in H-1B status. Another 18,000 petitions were pending at the time the numbers were released, for a total of 78,500 petitions. In FY 2002 the cap for new H-1B classifications was set at 195,000. The number of approved and pending petitions in FY 2002 pales in comparison to the FY 2001 when 130,700 petitions that were approved. In fact, H-1B filings declined by 41 percent between the first nine months of FY 2001 and the first nine months of FY 2002.

The relatively low number probably reflects the turbulent economic conditions both on a national and on a global scale. The decrease in the number of new H-1B classification requests appear to confirm the maxim that the economy is dictating the use of highly skilled professional foreign nationals and not U.S. employer’s search for "cheap labor".

Finally, it is important to note that the calculation does not include the visas that fell into the “exempt” category, which includes employees hired at research institutions, certain non-profits, and higher education.

In the wake of a slowing economy, there are likely to be continued calls to curtail visa use still further. Such efforts, however, ignore the fact that legitimate visa use in a recession reflect the economy – as it appears has already happened with the significant decrease in H-1B visa filings in FY 2002. In FY 2003, the cap will drop down again to 65,000 and even with the current economic trends it does not seem as though this number will be sufficient to meet the needs of U.S. employers.