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Cheap Labor Visas Crowd U.S. Students Out of Job Market

By: Kenric Ward | Posted: January 2, 2012 3:55 AM
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At a time when fewer young Americans are finding work, hundreds of thousands of foreign students have taken jobs through a controversial U.S. visa program.

The Summer Work Travel program has grown into a $100 million international industry, providing temporary jobs at venues ranging from Alaskan fisheries to Florida theme parks.

Touted as a "cultural exchange," there's a dark side to SWT and its J-1 visa program, which, at times, looks more like a human-trafficking operation for cheap labor.

Young women have been dragooned into strip clubs, despite State Department regulations that expressly prohibit that kind of work, and some students complain of sexual abuse or physical neglect at the hands of their employers.

ZM Studios, a broker for topless dancers, brazenly advertised on its website: "If you wish to dance in USA as a J-1 exchange visitor, contact us." The ad said ZM Studios is "affiliated with designated visa sponsors" and can get women J-1 visas and jobs at topless clubs in cities like Las Vegas and Los Angeles.

In Florida, a 19-year-old Russian told the Associated Press she went to work as a cocktail waitress at a topless bar in Fort Walton Beach because the souvenir shop where she worked didn't pay much and the shop owner had her living in a crowded, rundown apartment.

Elsewhere, exchange student Munkh-Erdene Battur said he and four other Mongolian nationals were fired from their fast-food jobs in Riverton, Wyo., after complaining about being forced to pay $350 apiece per month to live in a converted garage.

"In my whole life, I've never lived in that kind of place and that kind of conditions," Battur told the AP.

A new report by the Center for Immigration Studies says the rapid growth of SWT over the past 15 years illustrates a troubling trend in the nation’s immigration system, "where new programs are created and allowed to expand significantly without giving careful consideration to their impact on the labor market or the larger American society."

"There's been a massive failure on the part of the United States to bring any accountability to the temporary work visa programs, and it's especially true for the J-1," agrees Terry Coonan, a former prosecutor and the executive director of Florida State University's Center for the Advancement of Human Rights.

The CIS report, "Cheap Labor as Cultural Exchange," found that the foreign-student work program:

  • Displaces young Americans from the workplace at a time of record levels of youth unemployment.
  • Provides incentives for employers to bypass American workers by exempting SWT employers from taxes that apply to employment of Americans. Employers also don’t have to worry about providing health insurance, since SWT students are required to buy it for themselves.
  • Puts downward pressure on wages because it gives employers access to workers from poor countries who are eager to come to the United States, not just to earn money but also to travel within the country and burnish their resumes by learning English.

Because J-1 visa holders pay an average of about $1,100 in fees to private brokers that serve as SWT sponsors, the program generates well over $100 million in annual revenues for those organizations, CIS estimates. Students pay many millions more in visa fees to the State Department and in travel expenses to and from the United States.

"Many [J-1 visa holders] are virtually indentured to U.S. employers and are therefore unable to challenge low pay and poor working and housing conditions," report author Jerry Kammer said.

Last year, 103,000 foreign students obtained J-1 visas to work in the United States. At the same time, the total number of U.S. youths aged 16-24 not working hit a record high of 18.5 million this summer, an increase of 7.2 million since 2000.

The underemployment of young, college-age workers predates the current economic downturn.

Comments (3)

Robert Lloyd
4:55PM JAN 3RD 2012
Great article Mr Ward!

I attend a local contemporary church where we focus on youth. There are so many of our high schoolers that have NEVER had a job and they are desperate to have one. These youngsters are hardworking kids with great attitudes and a desire to succeed. They work hard at our church and would be excellent hires for a business, but there just aren't jobs out there like there was some years back.

When I was in high school I had several jobs by the time I graduated and that was only because I wanted to play sports at times and had to make a choice. But everyone had a job as I look back or they merely chose to not work as they had a sports commitment or something of that sort.

Are kids are being thrown to the dumps and this diversity based big gov't anti-Christ-anti-American culture is what we now have.
LDouglas
8:44PM JAN 2ND 2012
I thought exploitation was pretty much limited to illegal immigrants. How sad.
And I agree we should freeze the program- along with the one that allows a million other foreign workers a Visa yearly, until we get our unemployment numbers in check. That should give them time to rework both programs so they benefit America as a whole.
From NumbersUSA: "According to data from the Bureau of Labor Statistics, only 200,000 total jobs have been added to our economy over the past 12 months. Yet, the federal government imported another 1 million new foreign workers, while Congress stood by and did nothing."
Bryan K Donnelly
10:52AM JAN 2ND 2012
VERY PRO LEGAL IMMIGRATION, BUT THIS IS TOO MUCH!

I am a libertarian Republican, though not of the zany Ron Paul isolationist, John Birch conspiracy kook variety. As such I’m not only a huge supporter of complete free trade with all nations except Communist Cuba, North Korea, and Islamofascist Iran, but also a big fan of LEGAL immigration. My own Irish grandparents only arrived in this great nation at the turn of the 20th century. Immigrants have MADE this country what it is. I also have done business with numerous Indian and east Asian “high tech” types for years; they’re great; making a huge contribution. But this bit of immigration is a serious problem.

We need to completely shut down our porous border with Mexico and THEN increase legal immigration; creating preferences for English speaking people with money to invest, education, or much needed skills. I’m a “Latinophile,” speak Spanish (as well as German, some Russian, some French), and love the glorious cultural, business, and political contributions Cubanos and other Latin Americans have made to my Southeast Florida home; particularly the food, black beans and rice has largely replaced potatoes on my table. I know Marco Rubio from the Florida Legislature, supported him for senate and fully expect him to be president one day.

However this program HAS TO GO! I worked my way through college and graduate school in an “entry level” department store job. Actually, I’m convinced the work experience has proved more valuable than the, largely useless if enormously enjoyable, BA and MA in history. The idea of going to great lengths to import “students” from abroad to fill such low level jobs at the expense of American students is reprehensible! US businesses exploiting the program to get docile cheap labor? Not a surprise; business will always look for the lowest cost. But it was government that opened the door for ‘em. It has to STOP NOW!