In recent months, the subprime mortgage crisis has prompted fears of an impending recession in the United States.

Indeed, the United States has seen sluggish economic growth in the past few months. In 2007, the national gross domestic product expanded by a mere 2.2 percent, the weakest rate of the past five years. Although the housing and financial service industries have been hit the hardest by this slowdown, the effects are spreading to more and more sectors of the economy as time goes on.

We at Zhang & Associates are also concerned that a possible recession, or even just a prolonged period of slow economic growth, would affect immigrants’ status in the United States—especially if their status depends on their employment. We believe that the status of the economy does have a direct influence on immigrants. However, we also believe there are things immigrants can do to prevent the potential negative consequences of an economic downturn.

Economic Growth and Immigration

One of the best examples of how immigrants can benefit from periods of strong economic growth comes from recent history, with the passage of the American Competitiveness in the 21st Century (AC21) Act in October 2000.

The circumstances surrounding this piece of legislation are probably still familiar to you. The 1990s were a period of strong economic growth in the United States, particularly the late ‘90s, which witnessed the flourishing of the high-tech industry and the so-called dot-com boom.

By the end of the ‘90s, many analysts were beginning to worry about the relatively small supply of American high-tech workers versus the large demand for these workers by high-tech firms. Many technology companies had been using H-1B visas to address this shortage, bringing in high-tech workers from overseas; however, the annual limits on H-1B visas were beginning to inhibit this process.

The AC21 Act was passed as a short-term solution to this problem. It raised the H-1B quota to 80,000 for the 2000 fiscal year, 87,500 for the 2001 fiscal year, and 130,000 for the 2002 fiscal year. The AC21 Act also provided exemptions from the quota to aliens employed by nonprofit organizations (including universities) and aliens who had received advanced degrees in the United States. Furthermore, the legislation provided increased the portability of H-1B status (please refer to this article for more information) and relaxed limitations in other areas of immigration policy.

Economic Stagnancy and Immigration

On the other hand, tough economic conditions can have unfavorable consequences for immigrants, as shown by the passage of the Chinese Exclusion Act in the late 19th century. This legislation followed the immigration of many Chinese workers to the United States during the 19th century—mainly during the 1849 California Gold Rush and in the latter half of the century, when the Transcontinental Railroad was being built. An economic downturn in the 1870s, due in part to the diminishing supply of gold in the West, led to increasing American resentment for Chinese immigrants, who were willing to work for lower wages than their American counterparts.

The Chinese Exclusion Act, passed in 1882, prohibited Chinese workers from entering the country for the next ten years (in fact, the law was extended and ultimately remained in effect until 1943). It also prevented current immigrants from obtaining citizenship, making them “permanent aliens” in the United States.

The Chinese Exclusion Act is perhaps an extreme example of how an economic downturn can affect U.S. immigrants; we do not imagine that a recession in modern times would prompt such dramatic measures. However, we should not ignore the overall lesson of the Chinese Exclusion Act: namely, that economic downturns tend to have adverse effects for both individual immigrants and overall immigration policy.

Our Advice

One of the main consequences of an economic downturn is the reduction of available jobs and the growth of unemployment rates. If your current status and/or future immigration plans depend on your employment, this could be problematic for you. We’d like to offer you some advice, depending on your current situation.

Current F-1 Holders:

If you currently hold F-1 status, our advice for you depends on whether you already have a job (or job offer).

If you already have a job, we suggest that you apply for an H-1B in April. Remember that having an advanced degree obtained from a U.S. institution will greatly increase your chances of securing an H-1B visa number. Also remember that if you work for a university or other nonprofit institution, you are exempt from the H-1B cap and can apply for an H-1B visa whenever you wish.

If you do not yet have a job, we suggest that you maintain valid status, probably in one of two ways: by either starting another program of study or finding a job at your school (technical or postdoctoral), since they are generally easier to find and not subject to the H-1B quota.

Current H-1B Holders:

We advise that all H-1B holders apply for their green cards as soon as possible.

Of course, there are a few ways you can go about doing this. You might be able to file a PERM-based immigration petition through your employer, especially if your job is secure. But you should also consider filing an NIW or EB-1(a) petition if you are qualified to do so, since you are able to file those petitions on your own behalf. If you are not sure whether you qualify for an NIW or EB-1(a), we suggest you consult an experienced attorney. In fact, our firm offers a free evaluation service for potential NIW and EB-1(a) applicants, so you can find out at no cost to you.

Furthermore, if you hold an H-1B visa but have lost or are about to lose your job, you should consider maintaining legal status by either switching to a dependent status (e.g., F-2 or H-4) or returning to school for a higher degree. Remember that high-level skills and top performers are always needed, even during periods of economic stagnancy. Obtaining a higher degree will have the dual benefit of both helping you maintain your status now and increasing your job prospects in the future.

Let Zhang & Associates Help You through the Immigration Process

We at Zhang & Associates can advise you and help you with any of these strategies, and many other immigration strategies besides. In particular, many of our attorneys have extensive experience with NIW and EB-1(a) petitions, and our 2007 NIW and EB-1(a) success rates reflect that fact.

Our immigration attorneys can help you even if you’re just trying to figure out what your options are and how a potential economic downturn would affect you. For more information, you can contact us by phone at 1-800-230-7040 or by email at @hooyou.com">info@hooyou.com. We respond to most email inquiries within 24 hours.