labor shortages

Projected Labor Shortages Affecting U.S. Industries

The deadlock in the U.S. Congress over immigration reform continues. U.S. companies are having trouble finding employees for vital industries. Short-term efforts, like the Keep STEM Talent Act offer some relief to specific industry needs, but a comprehensive overhaul of immigration policies is needed. Until real progress is made in Congress, three industries in the U.S. will continue to experience labor shortages of qualified and willing workers. According to research from Law360, three industries—Healthcare, the semiconductor sector, and hospitality—are particularly affected by labor shortages, which could be helped with updates to visa policies.

Healthcare

The U.S. healthcare system is experiencing persistent staffing shortages, leading to a decline in the quality of care available to Americans. Projections from the Association of American Medical Colleges estimate a shortfall of 54,000 to 139,000 primary and specialty physicians in the next decade. Openings for nurses are expected to reach 191,000 per year over the same period. The Paraprofessional Healthcare Institute anticipates a need for 9.3 million long-term care workers by 2031. Currently, immigrants constitute 25% of the long-term care workforce in the U.S. Despite the availability of qualified and willing individuals globally, the U.S. immigration system limits their recruitment. A survey by the American Health Care Association in June 2023 revealed that 77% of nursing homes face moderate-to-high shortages in staffing, with 25% either closing or downsizing due to the lack of workers.

Proposed solutions include increasing the number of available visas for foreign healthcare workers. The Healthcare Workforce Resilience Act, introduced in November 2023, suggests recapturing 25,000 unused visas for nursing professionals and an additional 15,000 visas for physicians awaiting green card processing. The act also proposes exemption from per-country caps and eligibility for premium processing, drawing inspiration from the 2005 Emergency Supplemental Appropriations Act.

Semiconductor

Becoming a global competitor in the semiconductor industry is a priority for President Biden, but the U.S. lacks the necessary skilled workforce. The CHIPS and Science Act, signed into law in August 2022, allocated over $52 billion for the development of the U.S. semiconductor industry. Despite this, a labor shortfall of 67,000 workers by 2030 is forecasted. One solution involves enabling U.S. companies to hire qualified foreign talent, including proposals to grant qualified Russian nationals with STEM PhDs the option to apply for green cards, subject to national security screening. Another option is expanding immigration options for foreign students with STEM degrees from approved U.S. universities.

Hospitality

The U.S. hospitality industry, witnessing a post-pandemic surge in tourism, faces challenges in finding staff due to extensive layoffs and workforce attrition. Despite efforts such as increased wages and benefits, 82% of hotels report staffing shortages as of June 2023, with 87% stating the inability to recruit sufficient U.S. workers. The option of seeking foreign labor is limited by U.S. immigration options for unskilled workers, primarily relying on the H-2B program, capped at 66,000 visas annually.

Conclusion

A comprehensive immigration reform is essential to address ongoing challenges recruiting talent to fuel U.S. industries. As Congress grapples with partisan divides and intertwines border issues with employment-based visas, targeted proposals attempt to address critical needs. Until a broader reform is achieved, the impact on U.S. industries and their competitiveness on the global stage remains a pressing concern. If you have questions regarding any U.S. immigration-related issues, feel free to contact us. We are with you every step of the way.

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