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Eli Kantor is a labor, employment and immigration law attorney. He has been practicing labor, employment and immigration law for more than 36 years. He has been featured in articles about labor, employment and immigration law in the L.A. Times, Business Week.com and Daily Variety. He is a regular columnist for the Daily Journal. Telephone (310)274-8216; eli@elikantorlaw.com. For more information, visit beverlyhillsimmigrationlaw.com and and beverlyhillsemploymentlaw.com

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Wednesday, July 15, 2015

Senator Sessions Leading Or Misleading On Immigration?

Forbes (Opinion)
By Stuart Anderson
July 14, 2015

Perhaps concerned that Donald Trump was getting all the attention on immigration, Senator Jeff Sessions (R-AL) last week repeated an assertion on high-skilled jobs that two Wall Street Journal editorials explained was a distortion of the actual job market.

In a recent press release, Senator Sessions stated, “Each year, universities graduate twice as many students with STEM [science, technology, engineering, and math] degrees as find STEM jobs. According to the Census Bureau, more than 11 million Americans with STEM degrees are not employed in STEM jobs – or three in four STEM degree holders.” The problem with these statements is they rely on a narrow bureaucratic government classification and bear no relation to reality. Why would any Americans keep getting science or engineering degrees if 75% of the people with such degrees were unemployed or sweeping floors, as Senator Sessions implies?

Here’s the problem: Senator Sessions is counting only individuals employed in what the federal government considers STEM “occupations,” which is a government definition that does not count millions of people working in jobs that utilize their science and engineering (S&E) education. (See this National Foundation for American Policy report.)

As the National Science Foundation’s Science and Engineering Indicators 2014 explains: “The application of S&E knowledge and skills is widespread across the U.S. economy and not just limited to S&E occupations. The number of college-educated individuals reporting that their jobs require at least a bachelor’s degree level of technical expertise in one or more S&E fields (16.5 million) is significantly higher than the number in occupations with formal S&E titles (5.4 million).” (Emphasis added.) An April 2015 National Science Foundation report updated these figures to show that 12 million people who require at least a bachelor’s degree level of technical expertise in one or more S&E fields are not included in the government’s formal definition of a science and engineering “occupation” (the definition Senator Sessions uses).

In other words, the only way Senator Sessions arrives at his contention that most Americans with degrees in science and engineering fare poorly in the job market is by ignoring 12 million people doing quite well with such degrees.

An April 27, 2015 Wall Street Journal editorial commented on the use of Census data by Senator Sessions and explained: “The problem is that these numbers for STEM jobs are based on definitions that are artificial and narrow.” (Registration required.)

The narrow government definition of STEM “occupation” would likely exclude every American recipient of the Nobel Prize in the past 100 years who worked as a professor, which would be classified as a postsecondary teacher using Census data, and the CEO of Apple, since management positions typically do not count as a STEM occupation under government classifications. Also among the many typically excluded from the federal government’s definition of working in STEM “occupations” are individuals promoted to jobs overseeing other workers, which is good for a career but moves them out of the federal government’s STEM occupation classification.

A more realistic picture of the labor market can be found in a January 2015 Conference Board report. That report found there were more than five vacancies advertised online for every one unemployed person in a “computer and mathematical science” occupation: 599,800 total ads and 107,200 unemployed, the best supply/demand ratio of any occupational category in America.

According to the National Science Foundation, only 1.4% of individuals who received a master’s degree within the previous five years (as of 2010, the latest year available) in computer and mathematical sciences reported being involuntarily out of their field – undermining the notion suggested by Senator Sessions that almost no Americans with degrees in STEM fields are actually working in their field. Similarly, only 3% of individuals who received a master’s degree within the previous five years (as of 2010) in engineering reported being involuntarily out of their field, according to the National Science Foundation. And individuals in the social sciences, which employs few foreign nationals, were more than four times as likely to be involuntarily out of their field as individuals with a master’s degree in computer or mathematical sciences.

That does not mean everything is great for everyone and that there can’t be improvements to U.S. education, workforce or immigration policies. When 82% of high school students in the Maryland suburbs can’t pass Algebra I exams there is something wrong. Increasing the green card quotas or other measures that would increase the mobility of H-1B visa holders would be positive reforms.

In response to recent news stories, some favor Congress placing significant new restrictions on high-skilled work visas. But realistically, even critics should recognize that any reforms Congress is likely to pass would not prevent companies from outsourcing certain functions. A global labor market exists and companies will retain the ability to shift work outside the country. Outside of the context of immigration, outsourcing is not controversial, since it is done for payroll, accounting, legal work, printing, etc. New immigration restrictions that affect the outsourcing of information technology (IT) services would perhaps affect who performs the services and where, not whether it happens at all. Cloud computing is likely to have the biggest impact on both multinational corporations and IT outsourcing models.

Ironically, the most “effective” reforms could also be the worst. Because U.S. labor laws do not protect incumbent employees as in Europe, it is easier to fire or lay off a worker in the United States. However, by making it more difficult to fire and lay off employees, France, for example, makes it less likely employers will want to hire new employees in the first place, since removing workers from payrolls may be impossible. As a result, the unemployment rate in France is nearly twice as high as in the United States – about 10.3% in France vs. 5.3% in the U.S.

Congress should focus on economic reforms that encourage companies to invest and expand their workforce inside the United States. That includes reforms to tax, education and immigration policies. Arguing, in effect, as Senator Sessions has done, that Americans should not pursue degrees in science and engineering because they will never find jobs is hardly a good blueprint for reform.

For more information, go to:  www.beverlyhillsimmigrationlaw.com

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