By Lewis Loflin
This article, originally compiled in 2013, examines the detrimental impact of importing foreign tech workers on H-1B and L-1 visas while American workers face layoffs. The practice, which gained momentum in the early 2000s, continues to exacerbate labor market challenges in 2025. A notable contributor to this trend is Rep. Morgan Griffith (R-VA), who has supported legislation expanding access to these visa programs, despite the economic struggles of his constituents in Southwest Virginia (SWVA). This updated analysis revisits historical data, integrates current insights, and serves as a record to evaluate the ongoing consequences of these policies.
In 2002, concerns about offshore outsourcing and visa programs were already evident, as highlighted by HireAmericanCitizens.org. The organization warned that employers were not only replacing American workers domestically but also training foreign H-1B workers at reduced rates, creating a surplus that depressed wages and forced many back to their home countries. This strategy aimed to establish a trained overseas workforce at even lower costs. The IDG News Service and IEEE-USA corroborated these concerns, noting a decline in IT employment from 2003 to 2004 despite falling unemployment rates, suggesting discouraged workers were exiting the field due to outsourcing and visa competition.
Specific data from IEEE-USA, based on U.S. Bureau of Labor Statistics (BLS) figures, revealed significant job losses: software engineers dropped from 856,000 to 725,000, computer scientists and systems analysts from 672,000 to 621,000, programmers from 591,000 to 575,000, and hardware engineers from 86,000 to 83,000 between the first and second quarters of 2004. Unemployment rates paradoxically decreased (e.g., from 3.3% to 2.9% for software engineers), indicating many professionals left the industry rather than remained unemployed, a trend attributed to offshore outsourcing though H-1B and L-1 visa issues were underreported.
Rep. Morgan Griffith, representing Virginia’s 9th District, which includes SWVA, has consistently supported policies expanding H-1B and L-1 visa programs. His votes in favor of legislation, such as the 2015 H-1B and L-1 Visa Reform Act and subsequent measures, have facilitated the importation of tens of thousands of tech workers, predominantly from India, as documented by U.S. Citizenship and Immigration Services (USCIS) data showing over 70% of H-1B visas issued to Indian nationals in recent years. This stance persists despite SWVA’s economic decline, with a 45% drop in the information sector from 2010-2020, contrasting with a 2% national increase.
In 2025, the trend has intensified, with tech giants like Amazon (14,783 H-1B filings) and Google (1,291 filings) relying heavily on these visas, often at the expense of American workers. Critics argue this policy aggravates domestic unemployment, particularly in regions like SWVA, where broadband investments exceeding $300–$400 million have failed to yield high-tech jobs, instead fostering low-wage call center roles ($12–$15/hour). Griffith’s support for these programs, amid local job losses, raises questions about the alignment of federal policy with regional economic needs.
The reliance on H-1B and L-1 visas has evolved since 2013, with 2025 data indicating a surge in visa approvals amid political debates under the Trump administration. Companies exploit these programs to reduce labor costs, with median H-1B wages at Cognizant falling 20% since 2020 despite industry stability, according to Bloomberg. This practice displaces American workers, as evidenced by lawsuits against firms like Cognizant for discriminatory hiring favoring Indian nationals. In SWVA, the economic fallout includes a 5% population decline in counties like Buchanan since 2010, driven by outmigration of 8,000–10,000 college graduates annually seeking better opportunities.
Federal investments in SWVA’s broadband infrastructure, including $120 million from Bristol Virginia Utilities (2002-2013) and $1.5 billion in state funds since 2021, have not reversed this trend. Instead, the region’s tech sector has shrunk, with case studies like Sykes and Travelocity illustrating job offshoring or low-skill substitution. The lack of transparency in these investment figures, often withheld to protect competitive strategies, further complicates accountability.
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Sector | SWVA (% Decline) | USA (% Change) |
---|---|---|
Arts, Ent., & Rec. | -20% | 6% |
Wholesale | -25% | 3% |
Construction | -35% | 24% |
Information | -45% | 2% |
Mining | -50% | -11% |
Notes: Excluding mining, SWVA experienced the greatest declines in sectors that grew nationally. The region’s mining sector decline exceeded the national average. A total of 10,451 jobs were eliminated across these five sectors, with 16,774 jobs lost when including national mining sector declines between 2010-2020. The 45% decline in the information sector persists despite an estimated $200 million in public investment, likely exceeding $300–$400 million, with significant data withheld.
Ref: Zach Jackson, Virginia Tech
The importation of foreign tech workers on H-1B and L-1 visas, supported by figures like Rep. Morgan Griffith, has contributed to a persistent displacement of American workers since 2002. Historical trends, validated by 2025 data, show a continued erosion of IT employment, particularly in regions like SWVA, where local economic development efforts have been undermined. The LENOWISCO study’s warnings about offshoring and low-skill job reliance remain relevant, necessitating policy reform to prioritize domestic labor, enhance transparency in visa and investment data, and address educational disparities. Originally compiled in 2013, updated April 16, 2025.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting in drafting and refining this article. The final perspective and edits are my own.