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The Future of Blue Cities: White Collar Job Loss in Chicago The H-1B hiring program is part of the transmission belt that is transferring cutting edge technical skills out of the country...and leaving the cities to wither.
by Donna Conroy

In the next 10 years, our nation will be losing 800 IT jobs daily, due to offshore outsourcing. However, this job loss will be concentrated in the major cities of the Midwest, East Coast and West Coast.
The IT jobs are the “canaries” of the off shore industry, with other white-collar jobs following suit. Once these jobs leave, any future job growth will most likely follow offshore.
Successful off shoring only occurs because of extensive on-the-job training – known in the industry as “knowledge transfer”. The federal government’s guest worker programs, such as the H-1B, are the foundation of this knowledge transfer.
The H-1B program creates a glass ceiling for Americans and legal immigrants by giving the power to corporations to remove jobs openings from EEOC guidelines and allows companies to narrow the applicant pool. The L-1 program facilitates a corporation’s ability to bring their workers here for training but pay them at their home country's wage rates.
Both of these government programs enable the infamous “training our own replacements”. Offshoring companies have built their business models around the guest worker programs, according to their SEC filings.
Since Chicago and Illinois companies rank in the top 5 states that use the H-1B hiring program, we should be in the top 5 states that experience this “Great Displacement”.
Within Chicago’s city limits, 6,881 companies have removed 107,717 jobs from the local job market via the H-1B hiring program from 2001 to 2004. 14,835 Illinois companies have taken advantage of this program to fill 230,006 jobs across the state with indentured workers during the same period.
These figures are helping to restore the concept of multiple workforces with varying and conflicting rights and privileges. Citizens from abroad who fill these job openings (the “B” team) don’t even have the basic American freedom to change jobs easily and have restrictions on their "at will" employment rights. The H-1B hiring program is one of several weapons weilded by "bodyshops" in a cruel, high-stakes game of Indian-on-Indian subjegation.
Now, let’s take a look at the interlacing of outsourcing and the real estate industry. We have 36 million square feet of empty commercial space, just in the downtown and O’Hare area alone. This represents a 20% vacancy rate. There is a multiplier effect with this job loss on supporting industries, so in effect 1.6 to 1.7 jobs will be lost with every 1 job outsourced from the local economy, according to Dr. Ron Pollina, a real estate expert who has studied this issue.
Most off shored workers experience a 30-50% wage decline once they gain employment outside of their field of expertise. This lays the groundwork for mortgage defaults, increased competition for modest income housing, and creating blocks to employment for lower-skilled workers whom would otherwise be able to compete for these jobs.
Listed below are the number of job openings reserved by the H-1B hiring program in 17 Blue States between 2001 and July 2005.
States # Job Openings Reserved
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CA
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967,982
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NJ
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411,513
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NY
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383,463
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PA
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247,574
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IL
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230,006
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MI
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222,058
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MA
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218,515
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CT
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104,400
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OH
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89,169
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MN
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74,162
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WA
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71,406
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WI
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39,101
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OR
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28,109
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NH
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25,224
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RI
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10,788
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VT
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6,846
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HI
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5,853
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ME
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4,035
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