IP: Letter to Congress on Engineering Unemployment] IEEE addresses the myth of the skills shortage.

[Dave Farber <dave () farber net>]

------ 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)

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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


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 <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)


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</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. 


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