Restrictive Immigration Laws Seen as Damper on City Economy

By ANNA PHILLIPS, Special to the Sun | July 28, 2008

Note: Correction appended.

With concern mounting about the health of New York City's local economy, several members of New York's congressional delegation will join with business and civic leaders today to discuss America's immigration policy, which they say is damaging the city's competitiveness internationally.

Business leaders have said that, in New York City, their principal concern is the country's visa policies. In the global market for the best-educated, highest-skilled workers, advocates say the city is weighed down by the fact that each year the federal government issues a limited number of visas for skilled, temporary workers. These 65,000 H-1B visas are distributed via a lottery system that randomly selects who companies will be able to bring into the country and hire.

After three years, the visas expire, and when they do, their holders have to reapply. This is especially problematic for New York City, as it has the largest number of H-1B visa holders in the country.

Today, Reps. Charles Rangel, Joseph Crowley, Nydia Velazquez, and Anthony Weiner — a mayoral hopeful — will attend a forum co-sponsored by the Partnership for New York City and New York Immigration Coalition, with the goal of pushing immigration reform back into the legislative limelight.

"Current U.S. immigration policy and visa policy are devastating to the New York City and state economy," the president and CEO of the Partnership for New York City, Kathryn Wylde, said. "Members of Congress are talking about getting this issue back on the table next year, but it's going to be very difficult. It's one of those too-hot-to-handle issues."

For New York, the situation is particularly dire, as the economy has weakened while competitors have opened their doors to immigrants.

"London is wide-open in terms of immigration, so that's our most obvious disadvantage," Ms. Wylde said. "Since 2001, the U.S. has consistently closed its doors, while London has gone the opposite direction."

At present, unemployment in New York is on the rise, Wall Street bonuses are expected to plummet, and the city is bracing for budget shortfalls that will top $5 billion in a few years. A recent report by the state Financial Control Board found that the city's budget gaps could end up even deeper, by more than $2 billion.

Another obstacle to the city is the difficulty it experiences in keeping foreign students who graduate from American schools in the country. Once they graduate, even if a company offers them a job, many have to leave the country if they can't obtain work visas.

Once international students and workers do get temporary visas, they face the challenge of obtaining a green card, another uphill battle, advocates of changes to the immigration laws say.

"In talking to business leaders all across the city, there is a huge concern that businesses are becoming less than competitive in this global economy when they're barred from seeking out talent wherever they can," said City Council member John Liu. "That applies to industrial professions, academics, and runway models."

The forum will also focus on how immigration policy has affected New York State, where the worries of the agricultural industry are prominent.

There, business owners are primarily concerned with the supply of immigrant workers and what they say is the federal government's emphasis on holding employers accountable for the status of whom they hire.

Among those in attendance tomorrow will be businessman John Catsimatidis, an immigrant from Greece who is considering a mayoral run. The forum will begin with a panel discussion that will include the New York State Department of Labor Commissioner, Patricia Smith, and the president and CEO of NASDAQ, Robert Greifeld, among others.

Correction: The cap on H-1B visas does not apply to visa holders seeking renewal or to universities and nonprofit research institutes. The cap was mischaracterized in an article on page 1 of the July 28 New York Sun.

Correction from August 5, 2008:

The cap on H-1B visas does not apply to visa holders seeking renewal or to universities and nonprofit research institutes. The cap was incorrectly characterized in an article on page 1 of the July 28 Sun.