US Skilled Labor Business Immigration- Trends and Drivers

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US Skilled Labor Business Immigration- Trends and Drivers

The primary corporate hiring trends centered around hiring either US nationals or foreign citizens include dropping degree requirements and leveraging artificial intelligence. Recruiting a diverse workforce, skill gap persistence, and stringent immigration policies are the key drivers of immigration in the United States.

CORPORATE HIRING TRENDS

Dropping Degree Requirements
  • Several top corporations in the United States are dropping a long time preference — the college degree, in hiring skilled workers.
  • The trend towards dropping degree requirements gets approval from labor market experts. It favors relevant skills, sometimes acquired through bootcamps or industry-related vocational training, over a four-year degree. The Harvard Business Review has prior noted: "that competency is more important than credentials, and warned of how degree requirements could threaten the economy."
  • According to a study conducted by LinkedIn, most companies are now either asking for a college degree or "equivalent practical experience."
  • A Learning House and Future Workplace study found that about nine in ten employers in the nation are open to hiring candidates without a college degree.
  • Nearly 66% say they are open to accepting candidates with a certificate, an online degree from a MOOC (47%), or a digital badge (24%) in place of a college degree.
  • IBM, Nordstrom, Google, Costco, Apple, Netflix, and Bank of America are some corporations that don't require a degree, according to a list from Glassdoor.com.
  • The director of IBM career and skills, Kelli Jordan, reports that they have dropped this requirement for "the vast majority of jobs" and have turned to "administering skills tests to ensure candidates have what it takes to succeed in positions ranging from software engineer to accountant."
  • In addition to major corporations taking part, this trend is also among the most talked-about by experts and authoritative news articles.

Leveraging Artificial Intelligence

  • The adoption of AI is on the rise in the United States' staffing industry.
  • Artificial intelligence is suitable for almost every stage of the hiring process, including screening candidates, vetting resumes, interviewing candidates, writing job descriptions, and deciding which jobs to fill.
  • AI can automatically identify candidates for a particular job through trained algorithms, faster than the traditional recruiting process.
  • The AI matching and response capability can help recruiters to "identify and respond to top candidates more quickly than ever before so that more candidates can have quality interaction with recruiters."
  • A survey sponsored by Oracle and conducted by HR Research Institute found that 77% of HR professionals in the nation will adopt AI in the next two years for talent acquisition to some extent.
  • Other studies report that "96% of HR managers believe AI can improve talent acquisition and retention significantly."
  • L'Oreal is one organization that uses AI for corporate hiring. Reportedly, the company uses AI to screen over 1 million candidates for its 15,000 jobs a year.
  • It has indicated in the past that the adoption of AI has saved the firm more than 200 recruiting hours and enabled it to hire the most diverse group to date.
  • In addition to receiving mention in news and experts articles repeatedly, this trend is also among the most talked-about by experts and authoritative news articles.

DRIVERS OF IMMIGRATION

Recruiting a Diverse Workforce
  • About 40% of US employers report that recruiting a diverse workforce is the primary driver in the growth of immigration in the country, according to the 2020 Immigration Trends Report.
  • The survey also found that 93% of employers state that "sourcing foreign talent is important to their companies' talent acquisition strategy."
  • As such, more than 80% expect their recruitment of foreign nationals to increase in the near future as they pursue organizational diversity.
  • The Silicon Valley region tops the list for driving immigration by scooping foreign talents, followed by the Seattle region.
  • Another survey of 442 employers in the United States found that some 55% plan to increase their foreign national headcount.
  • According to a study conducted by the National Foundation for American Policy, big tech organizations like Facebook, Apple, Microsoft, Amazon, Google, and Intel are sourcing for more foreign talents.
  • In addition to major corporations taking part, this trend is also among the most talked-about by experts and authoritative news articles.

Skill Gap Persistence

  • The 2020 Harris Poll survey found that the persistence of the skills gap in the U.S. labor market is a primary driver of immigration as companies seek ways to remain exceedingly competitive.
  • According to the report, "85% of employers expect their companies’ foreign national headcount to increase or remain the same in the next year, a 6% increase from 2019." Their intention is to remain competitive.
  • A recent survey conducted by Adecco U.S. acknowledges that the skill gap is an issue. The findings suggest that 92% of business leaders in the country think that "American workers aren't as skilled as they need to be."
  • Several companies are tackling this challenge by leaning on foreign talent. For example, Envoy Global’s 2019 Immigration Trends Report found that 40% of HR professionals classify hiring foreign talent as "very important."
  • Some companies relying on foreign talent to fill skills gap in the US are Amazon and Intel.
  • In addition to receiving mention in news and experts articles repeatedly, this trend is also among the most talked-about by experts and authoritative news articles.
Stringent Immigration Policies
  • A new survey found that approximately half of U.S. employers said that "the primary reason they send employees to other countries is an inability to secure a work visa or green card in the United States."
  • About forty-eight percent report that the stringent H-1B visa requirements are the reason for their outbound immigration assignments to their offices located outside the United States.
  • The 2020 Immigration Trends Report revealed that "41% and 38% of employers pointed to uncertainty of outcome in cases and a rise in application denials, respectively, as two of their biggest pain points with the U.S. immigration application process."
  • The majority of H-1B dependent companies, such as Cognizant, Amazon, Google, and more, have suffered high denial rates for initial applications under the Tramp's administration, forcing some to send foreign employees to other countries.
  • In addition to major corporations taking part, this trend is also among the most talked-about by experts and authoritative news articles.

Research Strategy

The research team sought after the corporate hiring trends and immigration drivers repeatedly mentioned in news/expert articles and authoritative industry reports. These trends and drivers were the most talked-about by experts or publications and participated in by several corporations.
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