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IP: Letter to Congress on Engineering Unemployment] IEEE addresses the myth of the skills shortage.
From: Dave Farber <dave () farber net>
Date: Sun, 21 Jul 2002 21:18:25 -0400
------ Forwarded Message From: Nathan Cochrane <ncochrane () theage fairfax com au> Organization: The Age newspaper Reply-To: ncochrane () theage fairfax com au Date: Mon, 22 Jul 2002 10:43:34 +1000 To: Dave Farber <dave () farber net> Subject: [Fwd: IEEE-USA 07/12/02 Letter to Congress on Engineering Unemployment] Hi Dave This content in this letter from the IEEE should be no surprise, although it comes a bit late. IEEE addresses the myth of the skills shortage. http://www.ieeeusa.org/forum/POLICY/02July12.html For years those such as Dr Norman Matloff at UC Davis have been preaching to the choir that there is no desperate IT skills shortage; just an attempt by big companies to expand supply so as to reduce their costs. Debunking the Myth of a Desperate Software Labor Shortage http://heather.cs.ucdavis.edu/itaa.real.html This is as true in other Western countries as it is in the US. Even in the boom times there was great unemployment in certain areas, poor conditions in many others. US IT professional industry groups complained that foreigners were taking their members' jobs, much like the blue-collar unions did a generation or two ago. But it was no holiday for imported IT workers, who were basically used as slave labor, doing the same job sitting alongside their US colleagues and earning a fraction of the salary. Meanwhile, valuable skills were leached from developing economies as their people left for where the grass, dollar bills and hopefully the cards were greener. 'In a July 13, 1999 column by Nathan Cochrane in an Australian publication, Fairfax IT, computer graphics guru Carsten Haitzler noted, "Be wary of H1-B visas in the USA - you basically get shackled to a company...Being a non-American in the USA is almost like being a second-class citizen."' http://heather.cs.ucdavis.edu/itaa.real.html In Australia, the problem has been tackled, at least in part, by reducing by more than half the Migration Occupations in Demand List (MODL), compiled by the Australian Government to assist selecting new arrivals. Security experts join list of most-wanted migrants "The list of jobs on the MODL has shrunk to a dozen, from a high of 26 last year, mostly centred on big-ticket e-business implementations and operating systems expertise, and is expected to fall to just a handful in the next few weeks." http://www.theage.com.au/articles/2002/07/15/1026185154225.html -------- Original Message -------- IEEE letter to congress on the myth of the skills shortage. http://www.ieeeusa.org/forum/POLICY/02July12.html 12 July 2002 The Honorable Dennis Hastert U.S. House of Representatives Washington DC 20515 Dear Representative Hastert The latest unemployment statistics from the second quarter of 2002 confirm an alarming trend regarding the employment status of engineers in the United States, and especially electrical engineering and computer science. Despite continuing claims of "shortages" of highly skilled professionals, U.S. engineering unemployment has increased dramatically in the past two years, reaching an all-time high for electrical engineers and computer scientists in the quarter just ended. The Institute of Electrical and Electronics Engineers - United States of America (IEEE-USA) promotes the careers and public-policy interests of the more than 235,000 electrical, electronics, computer and software engineers who are U.S. members of the IEEE. On behalf of our members, we urge you to hold a field hearing or town hall meeting during this August District Work Period to gather input from engineers and other high-tech workers in your district on the unemployment situation, its causes and possible solutions. Unemployment data for the past several years shows that the gap between general unemployment and engineering unemployment has narrowed considerably. This is significant because engineers are the innovators whose work underpins the creation of high value-added goods and services that generate wealth in our economy, and hence are usually the last part of the labor force to experience widespread unemployment. Historically, high levels of engineering unemployment are a warning that the gears of our economy are grinding to a halt. But overall unemployment is dropping, and many analysts are beginning to forecast economic recovery. Why then is engineering unemployment continuing to rise? IEEE-USA is concerned that the most recent increase in engineering unemployment is not a short term or cyclical phenomenon, but represents a more fundamental paradigm shift in engineering utilization that has potentially negative impacts for our nation. The corporate management mantra "better, faster, cheaper" is predicated on "flexible labor markets." Unfortunately that translates into management practices that make engineers' jobs less secure and careers in engineering increasingly untenable. Labor flexibility in the technical fields is a euphemism for hiring foreign guest workers, increasing use of temporary workers (perma-temps), and outsourcing engineering work overseas. The result is that U.S. engineers are finding it harder and harder to find new jobs after a corporate layoff or downsizing, especially as they approach their 40s. Those with jobs are expected to keep themselves up to date on the latest technical skills with very limited time and financial support from their employers. And they are expected to work longer hours for salaries that have been essentially flat when adjusted for inflation since the 1980s. As these practices make careers in engineering less attractive, the best and brightest U.S. students are motivated to find jobs in other fields, thus making the U.S. even more dependent on non-U.S. sources of engineering talent. It is a dangerous cycle that over the long haul puts America's ability to innovate and compete in a global economy at risk, and raises countless security questions as we become increasingly dependent on non-U.S. sources for our technical know-how. As Congress debates legislation on subjects ranging from the H-1B guest worker visa to 401(k) pension protections for down-sized workers, it is imperative that you factor the impacts on engineers and the engineering profession in your deliberations. It is time for Congress to take a closer look at the problem of engineering unemployment and to eliminate the government subsidies and incentives that encourage corporate management to treat U.S. engineers as a disposable labor commodity rather than an essential investment in our nation's future. We would be pleased to work with your office to identify specific legislative opportunities, and to put you in contact with engineers in your state/district who can give you a first-hand impression of the problem. If we can be of any assistance in organizing field hearings, meetings or other opportunities to interact with your engineering constituents, please contact Vin O'Neill, our senior legislative representative for career activities, at 202-785-0017. Sincerely, LeEarl A. Bryant, P.E. 2002 IEEE-USA President (Similar letter sent to all Members of Congress) | Top of Page | Policy Log | Public Policy Forum | IEEE-USA | Last Update: 12 July 2002 Staff Contact: Vin O'Neill, v.oneill () ieee org Copyright © 2002, The Institute of Electrical and Electronics Engineers, Inc. Permission to copy IEEE-USA policy communications is granted for non-commercial uses with appropriate attribution, unless otherwise indicated. -- Nathan Cochrane Deputy IT Editor :Next: The Age and Sydney Morning Herald http://www.next.theage.com.au **************************************************************************** ***** This email and any files transmitted with it may be legally privileged and confidential. If you are not the intended recipient of this email, you must not disclose or use the information contained in it. If you have received this email in error, please notify us by return email and permanently delete the document. **************************************************************************** ***** <http://www.ieeeusa.org> Building Careers and Shaping Public Policy 12 July 2002 The Honorable Dennis Hastert U.S. House of Representatives Washington DC 20515 Dear Representative Hastert The latest unemployment statistics from the second quarter of 2002 confirm an alarming trend regarding the employment status of engineers in the United States, and especially electrical engineering and computer science. Despite continuing claims of "shortages" of highly skilled professionals, U.S. engineering unemployment has increased dramatically in the past two years, reaching an all-time high for electrical engineers and computer scientists in the quarter just ended. The Institute of Electrical and Electronics Engineers - United States of America (IEEE-USA) promotes the careers and public-policy interests of the more than 235,000 electrical, electronics, computer and software engineers who are U.S. members of the IEEE. On behalf of our members, we urge you to hold a field hearing or town hall meeting during this August District Work Period to gather input from engineers and other high-tech workers in your district on the unemployment situation, its causes and possible solutions. Unemployment data for the past several years shows that the gap between general unemployment and engineering unemployment has narrowed considerably. This is significant because engineers are the innovators whose work underpins the creation of high value-added goods and services that generate wealth in our economy, and hence are usually the last part of the labor force to experience widespread unemployment. Historically, high levels of engineering unemployment are a warning that the gears of our economy are grinding to a halt. But overall unemployment is dropping, and many analysts are beginning to forecast economic recovery. Why then is engineering unemployment continuing to rise? IEEE-USA is concerned that the most recent increase in engineering unemployment is not a short term or cyclical phenomenon, but represents a more fundamental paradigm shift in engineering utilization that has potentially negative impacts for our nation. The corporate management mantra "better, faster, cheaper" is predicated on "flexible labor markets." Unfortunately that translates into management practices that make engineers' jobs less secure and careers in engineering increasingly untenable. Labor flexibility in the technical fields is a euphemism for hiring foreign guest workers, increasing use of temporary workers (perma-temps), and outsourcing engineering work overseas. The result is that U.S. engineers are finding it harder and harder to find new jobs after a corporate layoff or downsizing, especially as they approach their 40s. Those with jobs are expected to keep themselves up to date on the latest technical skills with very limited time and financial support from their employers. And they are expected to work longer hours for salaries that have been essentially flat when adjusted for inflation since the 1980s. As these practices make careers in engineering less attractive, the best and brightest U.S. students are motivated to find jobs in other fields, thus making the U.S. even more dependent on non-U.S. sources of engineering talent. It is a dangerous cycle that over the long haul puts America's ability to innovate and compete in a global economy at risk, and raises countless security questions as we become increasingly dependent on non-U.S. sources for our technical know-how. As Congress debates legislation on subjects ranging from the H-1B guest worker visa to 401(k) pension protections for down-sized workers, it is imperative that you factor the impacts on engineers and the engineering profession in your deliberations. It is time for Congress to take a closer look at the problem of engineering unemployment and to eliminate the government subsidies and incentives that encourage corporate management to treat U.S. engineers as a disposable labor commodity rather than an essential investment in our nation's future. We would be pleased to work with your office to identify specific legislative opportunities, and to put you in contact with engineers in your state/district who can give you a first-hand impression of the problem. If we can be of any assistance in organizing field hearings, meetings or other opportunities to interact with your engineering constituents, please contact Vin O'Neill, our senior legislative representative for career activities, at 202-785-0017. Sincerely, LeEarl A. Bryant, P.E. 2002 IEEE-USA President (Similar letter sent to all Members of Congress) | Top of Page <#top> | Policy Log <1999/index.html> | Public Policy Forum </forum/index.html> | IEEE-USA <http://www.ieeeusa.org> | Last Update: 12 July 2002 Staff Contact: Vin O'Neill, v.oneill () ieee org Copyright <http://www.ieee.org/about/documentation/copyright/> © 2002, The Institute of Electrical and Electronics Engineers, Inc. Permission to copy IEEE-USA policy communications is granted for non-commercial uses with appropriate attribution, unless otherwise indicated. ------ End of Forwarded Message
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- IP: Letter to Congress on Engineering Unemployment] IEEE addresses the myth of the skills shortage. Dave Farber (Jul 21)