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Canada Businesses United States Technology

US Companies Are Moving Tech Jobs To Canada Rather Than Deal With Trump's Immigration Policies, Report Says (recode.net) 444

US companies are going to keep hiring foreign tech workers, even as the Trump administration makes doing so more difficult. For a number of US companies that means expanding their operations in Canada, where hiring foreign nationals is much easier. From a report: Demand for international workers remained high this year, according to a new Envoy Global survey of more than 400 US hiring professionals, who represent big and small US companies and have all had experience hiring foreign employees. Some 80 percent of employers expect their foreign worker headcount to either increase or stay the same in 2019, according to Envoy, which helps US companies navigate immigration laws. That tracks with US government immigration data, which shows a growing number of applicants for high-skilled tech visas, known as H-1Bs, despite stricter policies toward immigration. H-1B recipients are all backed by US companies that say they are in need of specialized labor that isn't readily available in the US -- which, in practice, includes a lot of tech workers. Major US tech companies, including Google, Facebook, and Amazon, have all been advocating for quicker and more generous high-skilled immigration policies. To do so they've increased lobbying spending on immigration.
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US Companies Are Moving Tech Jobs To Canada Rather Than Deal With Trump's Immigration Policies, Report Says

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  • Not new really (Score:3, Insightful)

    by AlanObject ( 3603453 ) on Thursday March 21, 2019 @01:18PM (#58311200)

    That's been going on for some time.

    Since the Bush years we often had to deal with tech seminars and conferences where they were moved out of the U.S. because many of the participants couldn't deal with U.S. Customs and Border enforcement. If you weren't a white European you were basically treated like shit and assumed to be a terrorist unless you could prove otherwise.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      US policies forbid anything that even smells of work in the US. I'm a Canadian contractor. If I went to a seminar in the USA I'd be dragged through the shit to prove that it isn't for my business and is only for personal enrichment. Easier to just say no.

      • Not so. Entry under visa waiver allows you to go to seminar for business.
      • by Pascoea ( 968200 )

        US policies forbid anything that even smells of work in the US

        It's the same thing going up that way. Last place I worked had guys sent home because apparently the answered the "what kind of work are you doing in Canada?" question wrong at the border. It got to the point where our company lawyer drafted a hall pass that anybody going to Canada had to take with them.

    • Re:Not new really (Score:5, Interesting)

      by Moryath ( 553296 ) on Thursday March 21, 2019 @02:00PM (#58311476)
      Meanwhile in reality, these companies were defrauding the USA to avoid hiring Americans so they could pay much less and keep the H1-B's as indentured servants who wouldn't be able to easily leave and find work elsewhere.

      https://www.youtube.com/watch?v=TCbFEgFajGU [youtube.com] Video on how PERM fraud worked, by creating fake job listings that nobody could possibly qualify for (such as demanding 20 years of .NET experience when .NET had only been around for 5 years) and "publishing" in absurdly small markets.

      • by Shaitan ( 22585 )

        Yes, and even if the salaries are within a reasonable margin the flood of additional workers stagnates wages. That is what companies want to avoid, paying tech engineers salaries on par with other fields of engineering.

      • There are body shops that hire H1-Bs because they can get them cheap, but there are also plenty of companies who don't. Google, for example, pays all of its technical staff well, where they're from doesn't matter. But the H1-B crunch it's forcing a lot more international hires to be located outside of the US, where in the past they'd be brought in. I know a few who are in the US now on H1-Bs and are going to have to move because they can't get their visas renewed. These are people making $250K to $500K per

    • Re:Not new really (Score:5, Interesting)

      by godrik ( 1287354 ) on Thursday March 21, 2019 @02:38PM (#58311706)

      I am well involved in organizing scientific conferences. We organize in the US most of the time but went to Canada last year. And we had WAY more attendees that could not get a visa than any other year on record. In particular north african and middle eastern attendees were the most impacted.
      So it may not be true that getting through visa and emigration is going to be easier in Canada than it is in the US. Though I have only the data point of a single conference.

      • by melted ( 227442 )

        What field? In my field (machine learning, computer vision) I don't think I've ever read a paper by any author affiliated with any non-Israeli Middle Eastern institution. It's as if nothing is going on there at all scientifically. There's a lot coming out of China (lots of froth, but some outstanding papers, too), a lot less from Europe, recently some good papers from Russia started appearing at a rate of 2-3 per year. Every now and then you see a paper from Israel (they seem to be predominantly focused on

    • So much winning here.

  • More advantages (Score:5, Insightful)

    by dskoll ( 99328 ) on Thursday March 21, 2019 @01:19PM (#58311216) Homepage

    Also, the corporate tax rate in Canada is very competitive, and health care premiums are much, much lower thanks to universal single-payer health care. Plus, if your income is in USD but your salaries are in CAD, you get a nice little boost.

    • Re:More advantages (Score:4, Insightful)

      by Pulzar ( 81031 ) on Thursday March 21, 2019 @01:24PM (#58311248)

      and health care premiums are much, much lower thanks to universal single-payer health care

      What health premiums?

      • Re:More advantages (Score:5, Insightful)

        by mark-t ( 151149 ) <markt AT nerdflat DOT com> on Thursday March 21, 2019 @01:35PM (#58311318) Journal

        As a Canadian, I can confidently state that we do, in fact, have to pay health premiums.

        In many cases, they are paid for by the employer, but where they are not, they still exist.

        Here in BC, a person can spend up to about $40/month on health premiums.

        • I'd gladly pay double, it would still be a giant savings for me. I pay $200 every 2 weeks.

          • Re:More advantages (Score:4, Informative)

            by Mashiki ( 184564 ) <mashiki@gmail.cBALDWINom minus author> on Thursday March 21, 2019 @02:36PM (#58311696) Homepage

            You're ahead of a lot of people in Canada who pay for private health insurance to cover what isn't covered by universal healthcare up here. So, drugs, dental, vision, hearing, any type of medical equipment and so on. None of that's covered, and to be covered you have to be either a senior or on disability. I know people who pay $200/mo, and only get $700 in drug coverage(70% covered) and glasses every 2-years. In bad years, that $700 doesn't last more than half a year for them.

            • by AmiMoJo ( 196126 )

              Aren't drug prices subsidised too? In the UK there is a fixed cost per prescription, about â10. That is usually a month's worth of drugs. You get medical equipment for free too, they will even come and modify your house to your needs if necessary.

              What we pay is based in earnings and hard to calculate as it's rolled up with other social security items, but it's affordable and free for those on lower incomes.

              • Re:More advantages (Score:5, Interesting)

                by Mashiki ( 184564 ) <mashiki@gmail.cBALDWINom minus author> on Thursday March 21, 2019 @06:02PM (#58312930) Homepage

                Aren't drug prices subsidised too? In the UK there is a fixed cost per prescription, about Ã10. That is usually a month's worth of drugs. You get medical equipment for free too, they will even come and modify your house to your needs if necessary.

                No. Drug prices vary by province, but not by a huge amount. The differences are usually due to distribution costs or pharmacy dispensing costs. Rather instead of subsidizing it, the entire country(all provinces, territories, and federal government) buy for the entire country at a flat rate. The projected costs are based on year-on-year trends for the demand of the drugs required for the amount of users. We don't get our medical equipment free, crutches are $39 at my local hospital if you're wondering.

                Most people pay with their supplemental insurance for it, and nobody comes to modify your house. You pay for that, if it's a fundamentally life changing thing like a stroke? You're better off selling your old property and buying something new. You may be covered to have someone help take care of you, but in general your family is the one who's doing all the hard work.

                Give you an example from the full rundown, diagnostics, costs, everything. When my grandmother was diagnosed with stage 4 lung cancer, the first doctor diagnosing was a ER doctor because she coughed up blood. From there it was 11 days to see her family doctor. 39 days to see her specialist. 40 days to meet with the oncologist, 15 days to start targeted radiation therapy. The doctors and oncologist remarked at the fast turn around time and asked if she knew someone "high up the chain" who might have bumped her name for faster treatment. Most people wait double. She was a head nurse, nursing teacher, and had a bunch of other certifications so maybe someone did, but if they did - we didn't know about it.

                For her treatment, we drove 51km one-way. Luckily her residence was "far enough away" that the VON(Victorian Order of Nurses - The VON is a not-for-profit care program, and is mainly funded by donations) which operated a hospice, and took patients to the treatment center would take her on. After that treatment, she was cut loose by the system until her care became so bad that family could no longer take care of her. That was around 9 months of pure hell with degrading health, memory, and various bouts of cancer and drug induced dementia of me taking care of her because both my dad and uncle worked between 40 and 50hrs/week and had no room in their houses, or because it wasn't very good to have a person who couldn't keep their balance walk up or downstairs for a bathroom. Her planning a head, before that she put herself on the list for a nursing home. The average wait time is 4 years, luckily or unluckily someone died and because she was already in the "last 6mo of estimated life" they got her in. She was in there for 3 weeks before she took an even harder turn. The hospital had no room for long term care for the last 6mo. Rather it was the VON again, who had space in a end-of-life hospice care facility. That was the last 27 days of her life.

                The state of care for end-of-life is pretty shit. It's shit enough that the government offers "escape" programs for people where a nurse comes in for a couple of days so you can bug the hell out, and try not to have a complete breakdown.

                What we pay is based in earnings and hard to calculate as it's rolled up with other social security items, but it's affordable and free for those on lower incomes.

                You pay pretty much for everything unless you're old age or on disability here. What is considered "critical care" is mostly covered, but there's plenty of people who go financially broke from the secondary costs of healthcare. And the 'safety net' is really your family.

        • "Here in BC, a person can spend up to about $40/month on health premiums."

          Most Americans would wet their pants to only pay $40/month for health premiums.

          • Re:More advantages (Score:4, Insightful)

            by Mashiki ( 184564 ) <mashiki@gmail.cBALDWINom minus author> on Thursday March 21, 2019 @02:40PM (#58311716) Homepage

            Most Americans would wet their pants to only pay $40/month for health premiums.

            BC is an odd province out. If you lived in Alberta, traveling 6hrs to see a specialist or being flown out to a major city is the norm for any type of critical care. In Ontario, traveling 2-5hrs for a specialist is common. $40 sounds great to even those of us in Ontario, especially since most people spend $200-400/per-person in private health insurance to cover drugs alone. That's on top of the money that's already being paid for it via taxes. Figure in Ontario you're blowing around 50% of your income on taxes right out of the gate. And you sure don't see much for it.

            But the real question is, how many Americans are willing to wait 2yrs for cataract surgery? Or 4 months to start cancer treatment? Cause those aren't outside a norm in Ontario either.

            • But the real question is, how many Americans are willing to wait 2yrs for cataract surgery? Or 4 months to start cancer treatment? Cause those aren't outside a norm in Ontario either.

              People in the states already have excessive waits. We have death panels also, they are insurance companies that deny coverage. Plus, don't complain about medication when it's about double or more for the same meds and expensive insurance still has large deductibles and pays only a portion of the cost. It's sad when people have to go to Canada and Mexico for medications and treatments because in many cases paying directly is cheaper than in the states with coverage.

            • I had a parent (in Canada) diagnosed with an aggressive cancer and started treatment within the week.

              There will always be the need for some sort of system in place to allocate limited health care resources; demand always outstrips supply. In the US, the queue of first to last is determined by who has the most money, as opposed to who has the greatest need. Up to you to debate which is the better approach.

              Like it or not, if you were told to wait 4 months to start cancer treatment, it is because you d
        • As a Canadian, I can confidently state that we do, in fact, have to pay health premiums.

          In many cases, they are paid for by the employer, but where they are not, they still exist.

          Here in BC, a person can spend up to about $40/month on health premiums.

          Back in my day it was $36. Outrageous how much health care increases are! 10 percent increase ... that could buy you a double double!

          Is it still $5 for an overnight hospital stay?

      • If you're not Canadian and not paying Canadian taxes then you have to buy health insurance. When was there as a student it was something like ~$900 / year.
    • by Mashiki ( 184564 )

      Canada's corporate tax rate is competitive to US companies because you can pay in USD. Which right now slashes 30% off your costs 1CAD=0.71USD right now. But that didn't really help here in Ontario. Now the question is why? Because electricity is expensive, for businesses you're paying around 4x the rate of Michigan or New York. If you were manufacturing the previous government implemented tax rates that were punitive to anything but the service industry, enough so that companies with massive data cent

    • Funny, read a story how Canada can't keep tech employees since they get payed a lot less than US employees. I hope the Canadian Tech workers are keeping track of the numbers in the article. This will NOT make it better for Canadian employees, it will drive down wages even more.

      It always looks great to economists and investors, but not for employees.

      US is making the correct move, Canada is just the new landing spot. Enjoy!

  • Thanks Obama! (Score:3, Insightful)

    by Anonymous Coward on Thursday March 21, 2019 @01:21PM (#58311224)

    I know it's hip & trendy to blame Trump for everything under the sun, these movements have been happening for longer than he has been in office. Ex: https://www.geekwire.com/2016/trudeau-speak-opening-microsoft-vancouver-facility/

  • by SuperKendall ( 25149 ) on Thursday March 21, 2019 @01:22PM (#58311226)

    Seems like, if companies have a lot of demand for workers, and it's harder to reign in foreign workers, that it's good news for legal U.S. workers already here...

    Some things may be moving to Canada but even the summary sure made it look as if the tech market in the U.S. was still growing also. Which you'd honestly expect.

    • by lgw ( 121541 )

      I'm more than happy to let Canada win the race to the bottom. The "disaster" of big west coast tech employers having to *gasp* hire US citizens hasn't kept them from expanding.

      When I was at Amazon, it was amazing how fast the story on my team switched from "we'd be happy to hire US citizens, we just can't find qualified people" to "we hired 3 US citizens this quarter, no problem" when we needed 3 people who could apply for top secret clearance. Amazing coincidence, really, how those previously non-existen

      • by Mashiki ( 184564 )

        Canadians have been getting pissed off over this the last few years under Trudeau because it's expanded. A company is more likely to claim that they can't find anyone to work a PT job in a fast food joint and then hire a TFW(temporary foreign worker) to cover it, but it hasn't stopped companies that hire skilled trades from pulling the same stuff, or banks doing the same. The problem is that while the Trudeau government likes to claim "unemployment historic lows!" and all the rest, wages have entered a st

    • Not from where I'm sitting. We hire all the Americans we can find, but we just can't find enough who can meet our requirements. We pay very well, have great benefits, etc. Doesn't matter. It's not a problem of finding people willing to work, it's a problem of finding people who can do the job. The only way to get enough good people is to hire globally. If that means more teams have to be based outside of the US, so be it.

      If the process continues for long enough that our teams are primarily based outside o

  • Healthcare too (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Thursday March 21, 2019 @01:23PM (#58311236)
    I've lost jobs to Canadian outsourcing because companies didn't want to deal with our screwed up healthcare system. One of the worst/best was when a US based insurance company moved it's call center operations to Canada.

    That said, if this really is just H1-Bs shifting to Canada I find it really hard to care. I couldn't have gotten those jobs anyway and to be blunt I see very, very little of the benefits from immigration here in America. Without robust set of programs to take advantage of those economic wealth generated it's all just money going to the top. Even small businesses can be hurt since they're left to compete with companies that can hire engineers for less money (though it's debatable whether wage depression brought on by the influx of cheap labor offsets that).
    • by sinij ( 911942 )
      Canada has robust merit-based immigration system but makes it very difficult to sponsor people for non-immigrant visas like H1B in US. As such, shifting jobs to Canada isn't about being able to import more cheap programmers from India.
      • by Mashiki ( 184564 )

        Doesn't apply to TFW's just a heads up. [www.cbc.ca] And if a company can lie it's way through to get a TFW, you can bet your ass that they will. [afl.org] The best way to think of the TFW program is to think H1B's on steroids. Instead of just applying to a particular sector, or job area. A company can hire a TFW for anything, min wage to highly skilled. Out in Alberta during the big oil rush, at least one company laid off of hundreds of skilled trades(welders, mechanics, pipe fitters, etc) and then hired TFW's as replace

    • I don't think Canada messes around with a "worker in purgatory" program like H1-B (where, if you don't follow the employer's wishes, you get let go, and have to return to your home country since it is hard to get another employer to sponsor you on short notice). Canada just allows more skilled workers to become legal immigrants right away.

      That is what the US should be doing. When the immigrants get a green card, they then lack restrictions which allow them to be exploited. Allowing them to participate in th

      • the ones I know work the same hours as the Americans. Rather, it's about keeping wages down and about not having to pay to train. And not just the training the business does. Don't forget that the US has been slashing funding to education for decades. We couldn't get away with that if we didn't have a supply of trained people.
  • by layabout ( 1576461 ) on Thursday March 21, 2019 @01:27PM (#58311272)
    in another country than it is to hire developers older than 40 and pay them for their skills??
  • by MobyDisk ( 75490 ) on Thursday March 21, 2019 @01:31PM (#58311294) Homepage

    The title implies that tech companies are not dealing with the immigration policies. The summary says that they are dealing with them, and dealing with them so well that they are hiring equal or greater numbers of foreign workers. Which is it?

    Let's look at the article and see:

    “Due to a shortage of green cards for workers, many employees find themselves stuck in an immigration process lasting more than a decade. These employees must repeatedly renew their temporary work visas..."

    That problem has existed for >20 years. Much of the article reads the same way:

    ...there aren’t enough skilled Americans...

    ...US companies are hiring outside the US...

    Most of this could have been written in 1995 and nothing would sound different.

    But this is slightly different:

    Recent immigration data shows the US is issuing fewer total visas to these types of workers than in previous years. This is a result of an executive order Trump issued...

    This quote links to an article showing that only 75% of H-1B visa applications are being accepted. But that conflicts with the statement

    Some GOOD news:
    Take a look at the chart in the article showing which companies are getting their Visa's rejected. Microsoft, Amazon, Google -- 99% acceptance. Tata consulting: 78%. Accenture: 69%. Good riddance! Companies like Tata and Accenture are the real abusers of H1-B. These firms just hire as many H1-B applicants as they possibly can, and then find jobs for them later by promising other companies they can do the same job for less, then offshoring the work later. That's a garbage business model and if that's the only companies having trouble than good riddance!

  • not my experience (Score:5, Interesting)

    by mejustme ( 900516 ) on Thursday March 21, 2019 @01:36PM (#58311326)

    As a Canadian working many years as a software developer, while I'm sure examples can be found where this is happening, 99% of the work is still in the U.S. And U.S. employers, as much as they like to complain they cannot find enough developers, are reluctant if not outright 100% against hiring people working in Canada, even with the CAD USD difference.

    Just try and convince a hiring manager that you'll get the work done from Canada while the company is U.S. based! I've tried several hundreds of times over the last few decades.

    Unless you're willing to move down to the U.S. and be sitting in an office chair at their location 9-5 M-F, you'll never get a call back from HR or the hiring manager.

    • But if you move down here, the housing is cheaper than Vancouver and you get paid more in USD, so it's win win for Canadians working in the US.

      • But if you move down here, the housing is cheaper than Vancouver [...]

        Canada != Vancouver

        • I thought we were talking about tech outsourcing? It usually does mean that. Some of my old friends from BC teach at college there in IT and gaming.

          • I know Americans are notoriously bad at geography, but take a look at a map and find Vancouver. You'll find that Canada is much larger than 1 medium-sized city. (Vancouver itself is only 600K people while Vancouver + lower mainland is 2.7 million.)

            And the cost of housing is through the roof, while the tech salaries are the lowest of all the large Canadian cities. Unless you are born there and have ties that keep you there, the best thing you can do for your tech career is to move somewhere else. Calgary

  • the salaries they have to pay to have the best.

    So they can't import cheap ass Indians by the gross anymore so they will go to Canada where they can...

  • by Bigbutt ( 65939 ) on Thursday March 21, 2019 @01:52PM (#58311414) Homepage Journal

    We can then get H1B's and abuse the system.

    [John]

  • If they are presumably moving people from India, I would think they could plop them down in Mexico and it would be a lot cheaper. They could...
    pay them less that in US or Canada but more than India
    have them in the same time zone
    only be a few hours or less away by air
    minimal employment laws compared to US/Canada
    dangle US employment

    • If they get out of line, you can hire cartel to make an example of one!

    • Also healthcare benefits.

      I used to work with an Indian visa worker. He could hardly believe US healthcare expenses. Even with health insurance he could barely afford the deductibles and the stuff the insurance would not pay for.

      Healthcare in Mexico is much more affordable.

  • by 140Mandak262Jamuna ( 970587 ) on Thursday March 21, 2019 @02:13PM (#58311564) Journal
    Times have changed a lot since my immigration. Those days, (1990s) most top quality graduates emigrated. Education is the classic ticket out of poverty, out of India. These are the ones that came to USA worked their butts off and impressed their bosses and made them think, "ALL Indians are smart, well educated and hard working". The supply is not all that deep. Once you get past IITs, IISc, RECs, NITs the quality drops precipitously. Emigrants till about 2002 - 2005 were decent.

    Then the H1B to green card transition became hard, the waiting lists got longer, and USA was losing its charm for the elite graduates. At the same time, Indian economy boomed, these grads were getting great career prospects back at home. The stream of resumes with IIT BTech has dwindled to nearly nothing.

    Let Canada keep them. When USCompanies realize most of them are duds, it will be Canada's problem, bot ours.

  • by Nova Express ( 100383 ) <lawrenceperson AT gmail DOT com> on Thursday March 21, 2019 @02:25PM (#58311632) Homepage Journal

    Theory: "We want the very best developers and engineers from around the world to supercharge the American economy!"

    Reality: "Hey, my cousin Sanjay knows Sharepoint. Let's write the job rec so narrowly tailored that we can get him into the country on an H-1B."

  • Back in the 50s, 60s, and 70s, Canada was consider the prime outsourcer for American white collar work. Lots of benefits to this such such as having the same time zone or close to it, cultural similarities, and a lack of a language barrier (eh?).

    And honestly, I'm ok with that. I'd like to support countries that are similar in values, culture, politics, and legal systems. Outsourcing work to the lowest bidders ends up supporting at best cronyism and bribery. And at worst totalitarian regimes.

  • The data must flow.

  • Gee, if only there were a field of study which tried to understand how people respond to incentives. If only there were only a way to predict if you make something more difficult, you'll get less of it. And that if you make something harder, organizations will use the easiest possible answer (which might not be the outcome you were hoping for).

Technology is dominated by those who manage what they do not understand.

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