The new working paper from The Brookings Institution says something about the Trump administration’s restricting entry to non-immigrant work visa holders. The matter is concerning as it says that the move may have cost the US economy $100 billion.
|“An Executive Order worth $100 billion: The impact of an immigration ban’s announcement on Fortune 500 firms’ valuation”||This is the name of the paper published with the facts that reveal the extent of the financial burden that the Trump administration’s move mayhave created. The $100 billion in losses was calculated on Fortune 500 firms. This was calculated based on the valuation of these companies before the new order was issued by the Trump administration.|
The results of Trump’s decision had more impact on those US firms that had a higher reliance on immigrants willing to work in USA. They possess good working skills especially in information technology and financial services.
|Hard time for H-1B, L-1, and J1 visa holders||On June 22, 2020, Trump proposed to bar the entry of H-1B, L-1, and J1 visa holders and suspended these non-immigrant work visas till the end of 2020.|
The Trump order was however nullified by a US district court in early October 2020. The study conducted for the paper was focused on L-1 and H-1B visas. The reason was that these visas were the most relevant to top companies.
The possibility of jobs moving overseas leading to a dip in innovation in the USA is a glaring impact projected as a result of the new policy related to US work permit visa.
The restrictions on skilled visas are bound to create a supply shock for firms in the US in a range of industrial and service sectors. However, the negative impact that will be immediately felt could be countered in the long-run with offshoring arrangements.
If you are looking to Study, Work, Visit, Invest or Migrate to the US, talk to Y-Axis, the World’s No.1 Immigration & Visa Company.
If you found this blog engaging, you may also like…