CONTINUING HIGH-TECH WORKER SHORTAGES TAKE THEIR TOLL ON THE ECONOMY.

AEA President Tells Lawmakers Only Short-Term Solution Is To Increase H-1B Visas 

American Electronics Association President William Archey, testifying late last week before a Senate Judiciary Subcommittee, warned that the continuing shortages of high-tech professional workers are exacting economic and technological costs on the US by eliminating the ability of high-tech companies to operate efficiently, to innovate and to compete effectively.

"Continuing shortages of high-tech professionals diminish the capacity of America's most dynamic businesses to bring existing and innovative new products and services to market in the most cost-efficient, internationally competitive manner," said Archey. "Put simply, shortages of high-tech workers shortchange not just the businesses directly affected, but the overall national economy."

Archey stressed that the only short-term action available for reducing these shortages is to increase the H-1B visa program cap on the number of foreign professionals high-tech companies can hire to fill critical vacant jobs. "That is an absolute imperative," he said. He also praised Michigan Senator Spencer Abraham (R-MI) for his "singular leadership" in working to raise the H-1B visa cap. "Senator Abraham has shown rare economic acumen by his vigorous efforts to allow high- tech businesses the simple opportunity to recruit the skilled workers they need to be competitive on the world market."

In this testimony, Archey reviewed data indicating that the current supply of high-tech workers is not keeping pace with industry demand. The data showed that the primary cause for this imbalance is the decline in the number of students with high-tech graduate and undergraduate degrees. Among the facts Archey presented:

The unemployment rate for engineers is 1.6 percent; for computer programmers, 1.4 percent; for computer scientists, 1.2 percent.

The unemployment rate in Santa Clara County, Calif. (Silicon Valley) is 2.9 percent; in Austin, Tex. 2.1 percent; and in Fairfax County, Va. 1.5 percent.

The total number of students with undergraduate, graduate, and doctoral high-tech degrees dropped five percent between 1990 and 1996.

The number of bachelor's degrees in electrical engineering decreased 33 percent between 1990 and 1996, and the number of bachelor's degrees in computer and informational sciences decreased 27 percent between 1990 and 1996.

The Dept. of Labor estimates that by 2006 demand for database administrators, computer support specialists, and computer scientists is expected to increase 118 percent, reaching 461,000, while demand for computer engineers is expected to jump 109 percent, totaling 451,000. System analysts will double from 506,000 to more than one million.