New study takes stock of the impact of Trump's work visa policy

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…

More Europeans planning to travel in the next 6 months