Talent

Obamacare Could Boost Entrepreneurship

Obamacare Could Boost Entrepreneurship

Here’s what we know about the Affordable Care Act: 32 million Americans who would otherwise be uninsured will now have coverage. What you might not know is that Obamacare could also boost entrepreneurship by decoupling healthcare from employment. The pressure to be employed by a larger company is loosening as the Affordable Care Act makes it easier and less expensive to purchase individual coverage.

Immigration Reform Can Reinvigorate the Economy

Immigration Reform Can Reinvigorate the Economy

Despite the current government shutdown, the march towards immigration reform is continuing. Last week, House Democrats released a comprehensive reform bill, and House Republicans too are working on solutions behind the scenes.Amidst signs of poor economic performance that will only get worse with the current shutdown and looming debt-ceiling debates, a comprehensive solution to immigration reform makes economic sense.

Education – A Talent Solution

Education – A Talent Solution

Effective solutions to low educational attainment, specifically in STEM subjects, remain hard to find. Since the United States education system has so far failed to produce enough high-tech talent -- in the right places -- many U.S. firms are sourcing STEM (science, technology, engineering and math) talent from around the globe. But immigration reform is only a short-term solution to the talent shortage. To truly solve the problem, we must consider large-scale education reform. Holistic reform of education is a sustainable mechanism for economic growth, and the most direct solution for building a society of skilled individuals prepared to participate in the economy -- and specifically to replenish the high-tech labor market.

Startups Speak: I'm Here to Contribute, Build, Collaborate and Learn

Startups Speak: I'm Here to Contribute, Build, Collaborate and Learn

Pedro Sorrentino hails from Sao Paolo, Brazil, and is currently living in San Francisco working for SendGrid. While attending graduate school in Boulder, Colorado, Pedro started and sold his first business. Once he graduated, however, Pedro had a hard decision to make. Based on his visa class, and the fact that he came from Brazil, the rules stated that it was mandatory for him to return home upon graduation. Would he go back to Brazil to work for his company? Or could he find an employer who would sponsor his H-1B application to stay in the United States?

Texas Tech Organization Leads Charge on Business Engagement with Patent Policy

Texas Tech Organization Leads Charge on Business Engagement with Patent Policy

Debate around the patent system, and how we can fix it, is beginning to take shape in Washington, after many years of discussion in entrepreneurial communities around the country. Texas Republican Senator John Cornyn recently joined the debate with well received draft legislation that would help on a number of fronts; Senator Cornyn released his plan after actively seeking the input of the entrepreneurial community in Texas.

Senate Immigration Success: Time to Keep Working

Senate Immigration Success: Time to Keep Working

By a vote of 68-32, the United States Senate completed a landmark bipartisan effort by passing S. 744 on comprehensive immigration reform. We applaud the efforts of the Senators who voted in favor of the bill, and all their staff, as well as recognising the historic impact of the technology community. Today we stand closer to the promise of an immigration system that works for all Americans than we have for decades. Now we must ensure this promise is realized.

Tech Leaders Urge U.S. Senate to Pass Immigration Reform

Tech Leaders Urge U.S. Senate to Pass Immigration Reform

This week, we signed and sent a letter to the U.S. Senate alongside other leading tech groups. The movement led by TechNet gathered over 100 signatories, including the Consumer Electronics Association, Cisco Systems, Facebook, and Partnership for a New American Economy. The technology community understands the importance of the high-tech industry to the American economy, and agrees unanimously that comprehensive immigration reform is the solution we need.

Hangout for Immigration: What You Can Do

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This morning, I was honored to convene a Google+ Hangout with leaders, and Keep Us Here coalition partners, from across the country to talk about immigration reform. As we reach a pivotal point in the political process, we spoke about the state of play on reform in Washington and, more importantly, about about the tools that allow ordinary Americans to be a part of that debate.

Engine Advocacy's Immigration Hangout from Engine Advocacy on Vimeo.

I was joined by Ali Noorani, Executive Director of the National Immigration Forum, Jeremy Robbins, Director of Partnership for a New American Economy, Mahrinah von Schlegel, Founder and Managing Director of Cibola, a tech incubator in South Side, Chicago, with PandoDaily’s Hamish McKenzie moderating. You can watch it for yourself here to find out more on what we’re all doing and how you can get involved.

Overall, our remarks centered on the uniqueness of the moment we’re seeing right now in Washington, with a coalition being built across the aisle and from every corner of America, speaking on the need for reform to our broken system. This morning, the coalition was able to push 82 Senators to begin debate on this critical issue, While that in itself was an historic achievement, we still have a lot of work left to do.

As you know, Engine launched Keep Us Here to provide a focal point for lots of that activism, but we can’t do it without our coalition partners, and especially, all of you. Everyone on today’s Hangout independently made the point that unless Senate offices -- and soon, hopefully, House offices as well -- hear from all of us about why this issue matters in our daily lives, we run the risk of losing this moment and the promise of building an immigration system that works.

Only you have the power to make that a reality. So take action, join us at Keep Us Here, join with coalition partners like BBB, March for Innovation, Cibola and so many more, and let your voice be heard. Pledge to call next week on our day of action, and send a tweet or a letter. 

Stand up and be counted. We’re closer than we’ve been in the last half century to meaningful reform. Don’t let this moment pass us by.

Keep Us Here. Pass Comprehensive Immigration Reform

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Engine supports comprehensive immigration reform, and specifically the bipartisan “Gang of Eight” bill that passed out of the Senate Judiciary Committee with amendments that further encourage innovation and boost economic growth.

To the aim of bringing this bill to a vote, and getting it passed into law, we’ve launched Keep Us Here
-- a campaign centered around online tools to call, write to, and tweet at, Congress.

This is a unique moment in American politics, and you can be a part of it.

For this to work, we need to mobilize startups, entrepreneurs, investors, innovators, and everyone who wants an immigration system that works for America in a global economy. We also hope to build a broader coalition, including a wider range of interest groups also pushing for comprehensive immigration reform.

Why does it matter?

1. Startups are responsible for all net job growth over the last twenty years
2. Engine Advocacy research tells us that for every new high-tech job, 4.3 other jobs are created in a local economy
3. With forty percent of Fortune 500 companies founded by immigrants, or the children of immigrants, it’s critically important that we safeguard the ability of the next generation of founders to start business here.
4. Under the current system we are losing knowledge, and losing out to other countries who are welcoming American-taught talent with open arm
s

Startups promise the rebirth -- and rejuvenation -- of the American economy. Startups can power the next generation of growth in the American economy if we let them.

Engine is working towards an immigration system that works for the United States in a global economy, and we need your help.

You can tell policymakers that you care about knowledge, talent, jobs, growth, and keeping the U.S. competitive in the global economy. Let’s raise our voices to encourage the Senate to pass comprehensive immigration reform now.

Go to Keep Us Here
. Write a letter to your Senator, tweet at Congress, and pledge to call your Senator directly on June 18th, to show your support for comprehensive immigration reform.

Use the image above as your Facebook cover picture, and the badge below for your website. If you want any further messaging, or other images, don't hesitate to reach out to us at comms@engine.is.

 

Startups Speak: The Entrepreneur Visa is Key

Peruvian born, Fulbright scholar, engineer, entrepreneur, and Hattery Co-Founder and Managing Director, Luis Arbulu, takes us through his perspective on current immigration policy and the Senate “Gang of Eight” bill. The highlight? The visa specifically for entrepreneurs.

In his spare time, Luis works with the White House Office of Science and Technology Policy and USCIS as an Entrepreneur in Residence, advocating for growing companies and entrepreneurs right at the center of it all.

If you have a story to tell, email editorial@engine.is

Immigration Bill Moves to Senate Floor with Amendments

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The amended Senate “Gang of Eight” immigration bill yesterday passed 13-5 out of the Senate Judiciary Committee -- but not before concessions were made by Chairman Patrick Leahy (D-VT), and Senators Orrin Hatch (R-UT) and Charles Schumer (D-NY) reached an agreement on certain provisions for high-skilled labor. 

Now the bill moves forward, with significant bipartisan support from the Committee, to the full Senate for their consideration, and then hopefully to a vote. Majority Leader Harry Reid (D-NV) said this bill will be first up for debate when Senators return from their Memorial Day break, and Senate Minority Leader Mitch McConnell (R-KY) vowed that Republicans would not block the immigration bill from the floor.

In a statement on Tuesday night, President Obama thanked “the leadership of Chairman Leahy and a bipartisan group of eight Senators,” and said that “the legislation...is largely consistent with the principles of commonsense reform I have proposed and meets the challenge of fixing our broken immigration system.”

Since the proposal was first released last month, over 300 amendments -- offered by Republicans and Democrats -- were submitted to the Senate Judiciary Committee for consideration. The Committee debated over 100 and has done a great job of making the bill better where necessary, but also rejecting efforts to severely restrict legal immigration, which would impede the ability to meet workforce needs. Moreover, this mark-up process is essential in giving everyone a stake in the final product as it moves through the approval process.

Focusing on the high-skilled sections of the bill, a host of amendments have been approved, and two were approved unanimously: an amendment by Senator Sheldon Whitehouse (D-RI) to help participants in startup accelerators obtain INVEST visas, and Senator Leahy’s amendment to permanently authorize the EB-5 visa program. The program lets a private entity or state apply to become an approved regional center, and then propose development projects for immigrant investors.

Looking at the H-1B system, the efforts of Senator Hatch were particularly noteworthy; his amendment, agreed upon late in the deliberations, increases the minimum number of high-tech H1-B visas allowed annually -- but it does so without accounting for domestic economic conditions. On the issue of fraud within the system, the broad bill requires employers filing visa petitions to first offer a job to an “equally qualified” U.S. worker, but in another amendment from Senator Hatch yet to be debated, this requirement would only be imposed on “H-1B-dependent” companies.

On student visas and funding for education, the committee adopted an amendment from Senator Grassley (R-IA) to improve the student and exchange visitor visa programs, and a further amendment from Senator Hatch to put the labor certification fee towards “improving science, technology, engineering, and mathematics education and training in the United States.”

Late in the day, still trying to get the bill to the floor, Senators Leahy and Schumer were forced to agree with dissenting members of the committee to hold off on adding an amendment that would have allowed certain provisions for same-sex couples. As a result of this, and other compromises, Committee members and other Senators know the bill is not perfect, but it is the best shot at fixing our broken immigration system. And with deals already being made between supporters and those who had previously been detractors as part of the full Senate markup process, it’s clear that Senate leadership on both sides of the aisle is looking for a process which swiftly and judiciously moves the bill to a vote. 

Last night’s developments are good news for those of us fighting for reform, but now is the time to step on the gas. The need for pressure on Senators to pass this bill and keep moving towards fixing our broken system is real, and it is immediate. 

In league with organizations from across the political spectrum, including Organizing for ActionConsumer Electronics Association, Voto Latino, Silicon Valley Leadership Group and many more, Engine and March For Innovation are launching two days of initiatives across the Internet. Stay tuned to Engine for more news about the March, and what we’ll be doing afterwards as well. Join the March, follow us on Twitter and Facebook, and keep working. Your voices can tilt this debate, help guarantee the bill’s passage, and go a long way towards protecting innovation and building an immigration system that works here in America.

Photo courtesy of  Talk Radio News Service.

Startups Speak: We Won't Be Hiring in the U.S.

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Sumit Suman is the co-founder of Mentii, an online mentoring platform connecting successful mentors with aspiring young people. Sumit started the business both in New York and Bangalore in order to benefit from capital, talent and the market across two startup hubs. But, as the co-founder of Mentii, it was imperative that Sumit could work on the U.S. side. This is where the trouble began.

The whole visa process was an expensive distraction, especially during the early bootstrapped stage when the team needed to devote all their resources to finding and proving the market. After receiving a protracted Request For Evidence (RFE), where responding to it would have resulted in further legal expenses, Sumit had no choice but to withdraw his visa application. This is despite the fact that Mentii had already invested 40 percent of their total expenditure on immigration-related costs!

Now back in India, Sumit explains that his decision was the only option for his business; even if there was a legal (though uncertain) way to stay in the U.S. in order to grow the company, the cost of doing so was too prohibitive. While the Mentii team will still find a way to engage the U.S. market, and U.S. investors, the team will not be growing here -- in other words, no additional jobs will be created in America.

Startups Speak: Sumit Suman

from Engine Advocacy on Vimeo.

If you have an immigration story to tell, email editorial@engine.is

Engine to Senate Judiciary: Pass Immigration Reform Now

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Engine endorses the Senate “Gang of 8” proposal on comprehensive immigration reform. So, on behalf of more than 500 startup members and other startup companies across the U.S., we sent a letter of support to Chairman Patrick Leahy (D-VT), Ranking Member Charles Grassley (R-IA) and the members of the Senate Judiciary Committee.

We thought it prudent at this juncture to thank the Senators who have been working hard on this proposal. Going forward, we hope their good work will be the subject of robust debate and then we’ll look towards the swift passage of this bill as we march towards solving our nation’s broken immigration system.

The Judiciary Committee is the first stop on the bill’s journey to hopefully becoming law. The markup process that begins today will amend and refine the legislation into a bill that can pass in the Senate, and one that can also do real and permanent good for people and businesses across the country who are in need of a working immigration system.

As we’ve said before, you can take action as well by committing to remain a vocal participant in this process. You can sign up for the March for Innovation which is now only 11 days away. It is only with your voice that we’ll be able to make a difference on this issue, so sign up, get involved and let your voice be heard today.

Here’s the full text of the letter:

Dear Chairman Leahy and Ranking Member Grassley and members of the Committee,

I’m writing to you, on behalf of the startup community, in support of S. 744 -- the recent Comprehensive Immigration Reform proposal released by your Senate colleagues. Engine Advocacy represents more than 500 startup companies from all across the United States, and we believe the provisions in this bill would greatly benefit the startup community, and therefore the U.S economy as a whole.

New and young firms are responsible for all new net job growth since 1980, according to research from the Kauffman Foundation. In addition, our own Tech Works research projected that for every job created in the high-tech sector, 4.3 additional jobs will be created in the local goods and services economy, including barbers, lawyers, and health care professionals. Finally, with forty percent of Fortune 500 companies founded by immigrants, or the children of immigrants, it’s critically important that we safeguard the ability of the next generation of founders to start business here.

The proposed INVEST visa will directly benefit immigrant founders and entrepreneurs who want to start a business here, and already have the support of local venture capitalists. In addition, raising the H-1B visa cap, and expanding the green card system with merit-based visas for high-skilled immigrants, will also make it easier for startups to employ much needed workers. Taking into account recent developments, we also support Senator Hatch’s amendment to make the H-1B visa cap responsive to market demand.

We applaud the work already done by your Senatorial colleagues and look forward to a spirited debate, a robust amendments process, and the opportunity to be a resource for the committee and the Senate at large as the debate advances. In the end, the continued good work of this committee and of Congress can affect real and permanent good for our country -- helping to catalyze continued economic growth in our community, and opportunity for the country as a whole. Startups can power the next generation of growth in the American economy if we let them.

We hope that you will support this proposal that will lay the foundations for a prosperous future.

With thanks,

Michael McGeary
Co-Founder
Engine Advocacy

Photo courtesy of Talk Radio News Service.

Startups Speak: Immigration and the Innovation Economy

This post is by Fabien Beckers, Co-Founder at Morpheus Medical.

I am a foreign-born entrepreneur in America. My company, Morpheus Medical, has created the first cardiac diagnostic tool that provides 3D interactivity, flow and pressure inside the heart. And all it takes is a ten minute MRI exam. But since I am a French citizen, I faced deportation, and the possibility of losing the chance to build this life-saving company. Understanding the importance of immigration reform is understanding what innovators, of any nationality, are capable of achieving.

Heart-related diseases account for more than a third of all U.S. deaths, and in 2010, the total cost was estimated at around $444 billion; treatment of these diseases accounts for about $1 of every $6 spent on health care in this country. These numbers are second only to oncology -- the diagnosis and treatment of cancer.

Responding to the current lack of accuracy in diagnosis, our technology not only solves the problem, it also reduces the time required by doctors, and therefore lowers the cost. In addition, the non-invasive aspect makes our solution perfectly suited to diagnosing small children with heart defects and diseases.

After studying for my PhD at Cambridge in the UK, I came to the United States in 2010 to attend Stanford’s Graduate School of Business where I certainly benefited from the best education this country has to offer. But when I graduated and wanted to start a business of my own, I faced an additional challenge as a result of my nationality.

Founding a business is already a very challenging and chaotic process. When finding partners, investors and customers is just the beginning, immigration battles present another, totally unnecessary, hurdle.

At Morpheus, we were lucky enough to pique investor interest early, but unfortunately, the investment was conditional upon securing my immigration status. When my H-1B application was denied, my appeal failed, and other avenues were successively closed off, the survival of this company came down to one person in one office in California who thankfully put a stamp on my O1 application.

This is not how the system should work.

No company, community, or country can survive without talent. So we should be helping brilliant innovators who want to build companies that will change lives, here in America. Everyone I’ve spoken to -- Republicans and Democrats -- agrees that this issue needs attention. Now is the chance to act; this bill needs our support. A quarter of all tech startups have an immigrant founder. I think I speak for many of these founders when I say that I want to stay here and build a successful company that creates jobs. We need an immigration system that supports the American innovation economy.

If you have an immigration story to tell email editorial@engine.is.

It’s All Relative: STEM Workers are in High Demand

Recent claims of an excess supply of high-skilled workers in the STEM occupations of science, technology, engineering and math are at odds with anecdotal and empirical evidence. While it’s difficult to definitively conclude whether or not there is a shortage of workers in any field, publicly available government data and common sense reject the notion that there are “too many” high-tech workers in the United States. More importantly, this entire discussion misses a larger point—high-skilled employment isn’t a zero sum game where a fixed set of workers are competing for a fixed set of jobs in an economy free from global competition. Let’s separate fact from fiction as we move forward with immigration reform.

Background

As the immigration reform debate heats up, so too has the rhetoric. One issue that has generally received broad support is the idea of expanding visas for high-skilled foreign workers—in particular those in the STEM fields of science, technology, engineering and math. Such support is based on the view that there aren’t enough qualified native-born American workers to fill demand for these roles. It also comes from the acknowledgment that employment in these fields is critical to economic growth, making them a national priority.

Despite this, some critics have voiced concerns about expanding visas for STEM workers, arguing not only that there isn’t a shortage of STEM workers, but in fact there are too many of them. Expanding high-skilled work visas, they claim, would push native-born American workers out of key technological occupations and reduce the wages of those who remain in them. Such claims are certainly outside the mainstream, but they have been taken seriously enough to appear recently in the Op-Ed page of the New York Times, the Washington Post, the Wall Street Journal, and most recently, the Atlantic.

So, which is it? Are there too few or too many STEM workers in the United States? It can’t be both. Since the truth has important implications for thousands of workers, startups, and the economy, we had better get it right.

The “we have too many high-tech workers” hypothesis is flawed because it is informed by an incomplete set of information. It also lacks common sense. The aforementioned articles rely upon a November report and a report published last week by the same think-tank, both of which point to tepid inflation-adjusted wage growth in computer and math sciences (CMS) fields—a subset of STEM—as definitive evidence of an abundance of labor supply in those professions.

The fact that inflation-adjusted wages grew slowly during the last decade lacks important context. Quite obviously, there were two economic recessions during this period—one of which was the worst contraction since the Great Depression. Both were followed by “jobless recoveries,” or prolonged periods of low employment growth after the economy has begun to grow again.

At minimum, a more relevant question is: how did wages in the CMS fields, and by extension STEM, grow relative to other professions? Looking at just one side of the story is the intellectual equivalent of concluding that the Cincinnati Reds lost last night because they only scored 2 runs. They actually won, because the team they played, the St. Louis Cardinals, scored just 1 run. Context matters.

A more complete and responsible analysis would look at relative performance as well as a broader set of measures to determine labor market “tightness”—a term that applies to areas where potential shortages may exist. A tight labor market would have some or all of these qualities relative to others: rapid employment and wage growth, low unemployment, and a high prevalence of job vacancies.

One final note before we get started: because this debate is taking place in the context of immigration reform for high-skilled workers, whenever possible the data here will be restricted to workers with at least a bachelor’s degree.

Wage Growth

Economic theory says that if shortages existed, prices (wages) would adjust upward until supply (workers) met demand (employers). But the reality is much more complicated. For example, wages adjust slowly and workers must learn new skills—especially for technical roles like in STEM. Still, it’s an important measure for assessing labor market tightness.

The chart below shows how the inflation-adjusted median wage has changed since January 2000 through 2012, for three groups of workers—those in the STEM occupations, those in the CMS subset of STEM, and those in all occupations outside of STEM.

Real Median Wage Change, Bachelor’s Degree Holders (2000-2012)

Wage change

Source: U.S. Census Bureau, Current Population Survey; Bureau of Labor Statistics, CPI; Engine calculations. Note: Data have been smoothed using a 12-month moving-average

The median wage in STEM and CMS occupations grew by an inflation-adjusted 3.5 percent and 4.0 percent respectively. That amounts to average annual growth rates of around one-third of a percent. Ouch.

But let’s take look at this in context: it’s been a very rough twelve years. As I mentioned before, there were two recessions—one of them the worst economic contraction since the Great Depression—followed by two jobless recoveries. The fact that there was wage growth at all during this period might actually be impressive.

Compared with workers in other fields, wage growth for STEM and CMS workers was actually quite robust. The inflation-adjusted median wage for all occupations outside of STEM fell by 5.5 percent during the same period, for a decline of half a percent each year on average.

Employment and Unemployment

Beyond wage growth, there are a few other measures to consider when analyzing labor market tightness—here we look at employment growth and the unemployment rate before turning to job vacancies afterward.

Employment Change, Bachelor’s Degree Holders (2000-2012)

Employment change

Source: U.S. Census Bureau, CPS; Engine calculations. Note: Data have been smoothed using a 12-month moving-average

This chart shows employment growth since January 2000 for college-educated workers in the STEM, CMS and non-STEM categories. Employment in the non-STEM occupations increased 31.3 percent, for an average annual gain of 2.3 percent. STEM fields performed even better, growing 41.6 percent or 2.9 percent per year on average—that’s about one-third more growth than non-STEM. The CMS subset blew the others away—more than doubling non-STEM growth as it increased by 83.1 percent or 5.2 percent annually on average.

Unemployment Rate, Bachelor’s Degree Holders (2000-2012)

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 Source: U.S. Census Bureau, CPS; Engine calculations. Note: Data have been smoothed using a 12-month moving-average

This chart shows the unemployment rate for each of our occupational groups during the same time period. The unemployment rate shows the number of people without a job, but who are willing and able to work, and are actively looking for a job (the unemployed), as a share of the total labor force (the unemployed plus the employed). In this case, the occupation assigned to an unemployed person would be the one they held in their last position.

As the chart shows, unemployment rates for college-educated workers of all varieties have been quite low over the last twelve years. The rate for STEM, and especially CMS workers, spiked during the dot-com boom—highlighting the job losses that occurred in that segment of the economy. Important to note, however, is that after peaking unemployment in STEM and CMS fell sharply. This indicates the ease with which unemployed workers in those fields were able to find new work—highlighting their relative value to employers.

The three rates peaked at about the same level during the Great Recession, though STEM and CMS unemployment has fallen sharply since mid-2010; declining by about 2.5 and 2.0 percentage points respectively during that two-year period. Unemployment for workers outside of STEM has only declined by about half a percentage point during the same period. Overall, the evidence here is more mixed: STEM workers seem to face higher volatility while unemployment for non-STEM workers rises less during recessions but also falls slower in recoveries. Even so, the STEM rate has fallen sharply in the last year.

Job Vacancies

Perhaps the most important measure for assessing labor market tightness is the ability of employers to fill open positions. If labor shortages exist, it would be difficult to fill open positions—openings would remain vacant for extended periods or discouraged employers may not even bother posting them at all. Since the reasons for not filling a job are complex, and even if they weren’t, data are elusive, the next best option is to compare the number of open positions with the number of workers available to fill them.

Here, we look at two ways of presenting that data. One caveat first—the job vacancy data used here aren’t available by level of educational attainment. Therefore, we are unable to restrict this portion of the analysis to workers with a bachelor’s degree or more. As a result, the differences here between STEM, CMS and non-STEM may be somewhat overstated.

Number of Unemployed per Job Opening (2005-2012)

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 Source: U.S. Census Bureau, CPS; Conference Board, HWOL; Bureau of Labor Statistics, JOLTS; Engine calculations

In a market with an abundance of available labor, the ratio of unemployed per job opening would be high—a large number of workers would be competing with one another for a smaller number of jobs. Where the labor market is tight, this number would be low—in other words demand is outstripping available supply. While the reality is more complicated, this is still a very good way to estimate the relationship between demand and supply.

As the data make clear, the market in STEM and CMS fields is much, much tighter than for fields outside of STEM. At the end of 2012, there were 2.4 CMS job openings for each unemployed CMS worker and 1.4 STEM openings for each unemployed STEM worker. That’s a lot of job openings for each unemployed worker to potentially be matched with. The exact opposite was true in non-STEM fields, where 4 unemployed workers battled for each job opening.

Job Vacancy Rate (2005-2012)

Job Vacancy

 Source: U.S. Census Bureau, CPS; Conference Board, HWOL; Bureau of Labor Statistics, JOLTS; Engine calculations

If you’re unconvinced that unemployed workers are an adequate measure of available labor, we can extend that definition to include workers who are currently employed in those roles. Recall that the unemployed plus the employed constitute the labor force. Here, we use the labor force as a measure of labor availability for STEM, CMS and non-STEM workers.

This time, the number of job openings is in the numerator and is expressed as a share of the labor force. This is often referred to as the job vacancy rate. Here, a bigger number would indicate a tighter labor market, showing that there are a larger number of job openings relative to the ability of the labor force to fill them. A smaller job vacancy rate would indicate the opposite.

We still see a similar story, though less pronounced: there is a larger number of job openings relative to available labor to fill those roles in STEM and CMS, compared with fields outside of STEM. The difference between this chart and the prior one likely has to do with a more rapidly declining unemployment rate and higher employment growth in STEM and CMS—both positive signs.

Conclusion

Wage growth for STEM and CMS workers with at least a bachelor’s degree has been more robust during the last twelve years than it has been for workers outside of these fields. Not only did wages grow at the median for these fields while wages in all other professions fell substantially, that growth also reached workers with a broader set of income levels.

Looking at other measures, available labor to meet job openings has been scarcer for the STEM and CMS fields, employment growth has been more robust, and unemployment has fallen to lower levels. The evidence is more mixed when it comes to unemployment, but overall the consistency across measures and the magnitude of differences point to tighter labor markets in these fields.

In fact, according to performance thresholds to assess labor market tightness outlined in a comprehensive review of the literature published by the Bureau of Labor Statistics, the CMS labor market is tight on each of three metrics (employment, wages, and unemployment). STEM is tight on two of three (wages and unemployment) and goes halfway on the third (employment). The BLS report doesn’t provide threshold criteria for job vacancies because these data weren’t available at that time.

This highlights a few important points worth making. Firstly, providing definitive evidence of the existence or nonexistence of a labor shortage in any profession is difficult, both because what constitutes a shortage can be broad based and because the appropriate data can be elusive. It’s irresponsible for researchers to claim there is an oversupply of STEM workers because of one metric taken outside of its proper context.

To be clear, the approach here does not claim that there is a shortage of workers in STEM and CMS fields. Instead, it shows that these labor markets are tighter than others based on a broad set of measures. At minimum, it is a clear rejection of the notion that we have too many high-tech workers in the United States—an argument that not only fails on evidence, but common sense as well.

Secondly, and perhaps most importantly, the argument about whether there is or is not a true shortage of STEM workers misses the entire point. Recent research has shown that foreign-born STEM workers increase employment and wage opportunities for high-skilled native-born American workers (STEM and non-STEM). In other words, these workers are complementary to, not substitutes for, one another. Foreign-born STEM workers are important contributors to productivity gains, which fuel economic growth and national prosperity. And because these workers tend to be employed in sectors of the economy that compete globally, if the United States doesn’t capture the talent and therefore growth, someone else will.

Let’s get our facts straight, and in context, as we move forward with immigration reform. Sure, foreign worker programs like the H-1B visa have a number of problems and need rethinking. So does our education system. But let’s fix those, not shut our doors to high-skilled foreign workers based on poor economics. That would be throwing the baby out with the bathwater, and in the process, shooting ourselves in the foot.

Ian Hathaway is the research director at Engine.

Startups Speak: Let Me Grow My Business

Sacha Tueni, co-founder of Changemakrs, grew up in Austria. When he moved to the United States to work with Facebook’s mobile partnership team in 2009, he was granted a visa within 3 short months. As a result, when Sacha decided to start his own business, he had no sense of how complicated the immigration process could actually be for a small company with limited resources. Now Sacha spends a third of his time talking to his lawyer, instead of growing his business.

Startups Speak: Sacha Tueni from Engine Advocacy on Vimeo.

If you have an immigration story to tell, email editorial@engine.is.

After the Gang of Eight

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Last Wednesday, the Senate’s so-called “Gang of 8” released their proposal to fix our nation’s immigration system. The 844-page bill, (which you can read here you speak legal), aims to rebuild a system which has become overloaded, burdensome and anti-competitive in a global context. The nuanced proposal covers multiple sectors of our economy, and different skill levels of potential immigrants.

For our community, there are many encouraging signs which we’ve written about in our full policy update. The inclusion of provisions like a startup visa, merit-based visas, and an increase in H-1B visas provide for more and better pathways for immigrant entrepreneurs to build business in America.

So, ok, great! Job well done everyone. Glad we fixed that. Is it time to move on?

Not even remotely.

From at least one conversation I had at the end of last week with a tired Senate staffer, I can report that “now is the time for the real work to begin.” This comes from an individual who has been working on immigration legislation with other Senate offices for the last four years.

The next step for the bill is to wind through the sometimes-rocky committee and amendment processes in the Senate. We also expect, in fairly short order, to see a companion piece of legislation from a similarly tasked group of House members. Then, the pundits, interest groups, and others will weigh in on what they see.

If the Senate bill passes in both chambers, it can be sent for the President’s signature to become law. If the Senate and House proposals pass through both chambers, the bills must then be conflated before reaching the President’s desk. In the worst case scenario, neither bill passes both houses and we start again from the beginning.

Now more than ever, it is critically important for you to keep the pressure on Congress to make sure the immigration debate and reform legislation continues to advance -- we need to ensure that the positive provisions for our startup community are represented in the final bill. We can do this by reminding members of Congress that building an immigration system that works, and can scale, is of critical importance to our ability to remain competitive in a global marketplace. We started by telling the House Small Business Committee just how important startups are to the U.S. economy.

Right now, the best way to take action is to join with our friends at March for Innovation. There, you’ll find resources, ways to get active, and can sign up for the Thunderclap in anticipation of the upcoming virtual march on Washington. We’ll be making more resources available in the coming weeks and months as this process continues.

To ensure we reach the eventual goal of rebuilding a broken immigration system, we as a startup community need to continue our active engagement in this process as it unfolds. Our voices will be critically important, and our work is underway. Engine, and all of its resources, stand at the ready to help reach our goal.

If you have an immigration story to tell, email editorial@engine.is