US to Suspend Employment Visa Issuance Until Year-End (Comprehensive)
[Asia Economy New York=Correspondent Baek Jong-min] The U.S. government has taken measures to suspend the issuance of work visas until the end of the year. Authorities explain this as a measure to prevent the spread of the novel coronavirus infection (COVID-19) by blocking the influx of foreign workers, but the interpretation that it is a move to expand employment for domestic citizens is gaining traction. Not only IT companies that hire high-quality foreign technical personnel are taking the biggest hit, but companies that need to send expatriates to the U.S. are also inevitably affected by this measure.
On the 22nd (local time), President Donald Trump signed an executive order to suspend the issuance of work visas for certain job categories, including technology and non-agricultural sectors. The affected visas include H-1B for professionals, H-4 for spouses, L-1 used when dispatching employees from overseas to the U.S., H-2B for non-agricultural workers, and J-1 for cultural exchange.
With this measure by U.S. authorities, the 520,000 jobs filled by foreign workers are expected to be replaced by domestic workers. Especially since this is a temporary measure ahead of the November presidential election, it is interpreted as a move with re-election in mind. This is because the U.S. government has shown its intention not to accept foreign workers amid a situation where more than 20 million people are unemployed due to COVID-19.
The core of this measure is the H-1B visa, which has mainly been used by U.S. IT companies to hire foreign talent. The U.S. authorities also plan to launch an investigation into the abuse of H-1B visas in connection with this measure.
The Wall Street Journal (WSJ) expressed concerns that U.S. IT companies will face difficulties in securing overseas talent and that it could lead to the overseas departure of domestic companies. It reported, "The president's order is a direct blow to industries that rely on H-1B visas and H-4 visas for their spouses to hire foreign technicians."
Companies that need to send employees to the U.S. are also under pressure. The L-1 visa is issued to executives and employees and their families who are transferred from overseas to the U.S. Large Korean companies such as Samsung Electronics have also dispatched expatriates through L-1 visas. The J-1 visa, known as a cultural exchange visa, is also subject to restrictions. However, applicants deemed to be in line with U.S. national interests are expected to be exempted.
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Bloomberg News reported that the issuance of new green cards (permanent residency) will also continue to be suspended until the end of the year. President Trump signed an executive order at the end of April to suspend green card issuance for 60 days.
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