I downloaded five years of H-1B data from the US DOL website (4M+ records) and spent the day crunching data.
I went into this with an open mind, but, to be honest, I'm now *extremely* skeptical of how this program works.
Here's what I found 👇
Before I start, one note: All charts in this thread are for applications that were “certified” (in other words, approved for entry into the H-1B lottery). I filtered out applications the gov rejected.
All numbers here are therefore for visas employers actually and realistically attempted to obtain.
To start with, this program is MASSIVELY popular with employers. The program has a statutory limit of 85,000 visas per year, but employers routinely receive approval for more than 800k applications per year (868k, or 10x the limit, in 2024).
Contrary to what I expected, the average salary for an H-1B is relatively low—slightly under $120k this year.
Given that much of the H-1B debate pertains to tech workers, I (incorrectly) assumed the average would be higher. But this is the beauty of data, right?
You can see that salaries are disproportionately weighted toward the lower bands:
17% are < $75k (blue)
21% are $75-100k (orange)
22% are $100-125k (pink)
15% are $125-150k (teal)
In other words, ~75% are jobs paying < $150k. Only 25% are $150k+, and, of those, only 2.5% are $250k+ (purple).
I (roughly) categorized job descriptions into computer/software/IT-related roles (teal) and everything else (gray).
Almost all the prominent job categories are tech-related. The two top categories, for software developer roles, are 1.1M over five years by themselves.
Basically every role with 30k+ H-1B applications is for a STEM field, with the exception of accountants and auditors (49k). Most of them IT-related, at that.
There’s a little more variety in roles with smaller numbers, but the overall tilt towards STEM remains throughout.
Let’s review applications by employer (again, with teal representing IT roles and gray being everything else).
There are some HUGE numbers here. 15 companies alone received approval for 20k+ applications each.
We’ll go back to employers momentarily.
Looking at applications by employer NAICS code, 5415 (computer systems design) absolutely dwarfs everything else: 1.2M applications over five years.
The next two largest are 6113 (universities) and 5416 (consulting).
As consultants like to say, let’s double-click into this.
NAICS code 5415 (computer systems design) is the category for many of the larger employers we saw above. Some of the companies here—Google, IBM, Salesforce—are household names.
But what about the other large applicants here, which aren’t as familiar (Cognizant, Infosys, Tata)?
As it turns out, these are ALL Indian companies that import H-1B tech workers en masse:
These aren’t American companies that needed international talent to fill critical roles. They’re foreign companies that appear to have been founded to place overseas tech workers into US companies as contractors.
What jobs are these companies seeking visas for?
A metric f**k ton of IT and software roles. Over the past five years, 80k+ computer systems analysts (Cognizant is the big player here). 50k+ systems engineers/architects (Cognizant + Tata). Programmers (looks like Wipro and Mphasis concentrate here) and IT project managers (Infosys).
The chart here shows each company’s average salary for each role. I’ve added a shaded gray band between $80-120k to highlight where the preponderance of salaries fall.
I’ve spent my career in M&A and corporate finance, and I’ve been involved in a lot of budget and hiring decisions. Unless we’ve overpaid every developer and IT person at every company I’ve ever worked for, $80-120k for roles like this is NOT market.
The H-1B program isn't just Indian companies requesting visas for IT workers, though.
The list of companies seeking visas for accountants is a who's who of Big Four and other prominent accounting firms. EY is crushing the competition with 16k+ applications.
EY also has the largest share of employers seeking visas for finance-related jobs, followed by investment banks Goldman Sachs, JP Morgan Chase, and Citibank.
Here are the roles for which EY sought visas, along with average salaries. Everything from accountants (16k) to computer systems analyst (7k) to actuaries (600 or so).
EY isn't even a major player in the world of actuaries! There's zero reason why they couldn't hire these people domestically.
Here's Amazon's main H-1B LLC:
Google, not surprisingly, had 45k applications for software developers alone.
You can see where I’m going with this. A casual perusal of the data shows that this isn’t a program for the top 0.1% of talent, as it’s been described. This is simply a way to recruit hundreds of thousands of relatively lower-wage IT and financial services professionals.
America needs to be a destination for the world’s most elite talent. But the H-1B program isn’t the way to do that.
I’m going to stop posting for now, but let me know if there are any other visualizations that would be helpful.
If you made it this far, thanks for reading!
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THREAD: Here's what a dive bar in Memphis taught me about tariffs, global trade, and domestic manufacturing.
(Yes, I'm being serious.)
Let's talk about why it's so hard to produce things in America, what it means for our country, and what we can do about it 🧵👇
Years ago, I worked on a corpdev team at a large industrial conglomerate. This company was a major player in basically every material in the world, from crude oil to glass to fertilizer.
There was only one thing missing: Steel.
So—naturally!—we decided to build a steel mill.
We worked with a boutique investment bank (Ari, if you're reading this, you're still the craziest finance wizard I've ever met), partnered with a major PE firm, wrote an absurdly large check, and got to work building a brand new steel mill in the middle of freaking nowhere.
Private equity is coming for the accounting industry. They’re rolling up practices, cutting costs, raising prices, and doing what PE does best.
There’s just one problem:
It’s not going to work. They’re lighting capital on fire, and they don’t even realize it.
Let’s dig in!👇🧵
This is going to be a loooong thread, touching on everything from the unique structure of the CPA industry to the inter-generational culture war within many firms to how PE firms structure exit opportunities.
Stick with me, though, and I promise I’ll tie it together. 😉 (2/28)
Let’s start with what PE likes about the CPA industry. If you read their slide decks, it almost sounds perfect for them:
- It’s one of the only industries PE hasn’t already picked over (“It’s terra nova! A huge blue ocean!”), meaning there’s low-hanging fruit to optimize. (3/28)
By now, we all know about the new tariffs on imports from Canada and Mexico. But what does this actually mean for businesses and consumers?
I just downloaded and analyzed a bunch of Trade Department data to find out.
Let’s dig in! 👇
Every year, the US runs a trade deficit with both Canada and Mexico. In simple terms, we import from them more than we export to them.
In 2023, Canada sent us $419B of goods (blue), while we sent them $354B (green). This resulted in a $64B deficit (yellow).
Similarly, the US also runs a persistent trade deficit with Mexico. Mexico’s import numbers aren’t much larger than Canada’s, but, because we export less to them, our trade deficit is larger—$152B in 2023.
My wife is in the middle of a Mexican standoff in the church nursery.
Our two year old got mad and threw a cup of animal crackers on the floor.
My wife refuses to leave until she picks them up. My daughter refuses to clean up until we promise her a cake pop and Bluey at home.
My wife (former Marine) is the most stubborn mom on the planet. My daughter (personality of an ISIS prison guard) will happily scream for hours on end.
I just dropped off a peppermint mocha for my wife. She’s digging in and playing the long game. Our pastor offered to broker a truce, but he left when the toddler hurled an elephant cookie at him, grumbling that our denomination doesn’t pay well enough to deal with situations like this (which is totally fair).
Will keep everyone apprised. If there are any hostage negotiators here with experience defusing toddler meltdowns, please reach out.
Update: My daughter is now demanding the removal of all US troops and naval vessels from the Middle East. This is really escalating out of hand.
The Economist published a brutal takedown of the woke movement this week.
tldr: Wokeism isn’t dead yet, but it’s suffering a significant (and much needed) statistical decline.
Let’s dive into the numbers 👇
Contrary to what many believe, 2020/2021 represented the *peak* of wokeism, not the genesis.
The woke movement gained much of its momentum in 2015, with—you guessed it—the announcement of Donald Trump’s presidential campaign.
This peak is evident across public opinion, the media, and higher education alike.
The business world was slower to adopt wokeism, only doing so after the death of George Floyd. But it also now jettisoning it (yes, DEI really was a ZIRP phenomenon).
Don’t get an MBA. You don’t need to spend $200k to learn how to be a business leader or an entrepreneur.
You can get a better business education for $8 per month on Twitter, and in way less time than two years.
From finance to marketing to business law, here’s who to follow! 👇
BUSINESS ETHICS
Business is the voluntary exchange of goods and services. And the foundation of this is ethical behavior.
If you want to learn how to do business the right way, there’s no better teacher than @moseskagan. He’s brilliant, wise, and just a thoroughly decent guy.
MARKETING
Believe it or not, products don’t sell themselves. If you want your business to make it, you need to get in front of potential customers.
@Camp4 is a world-class CMO. Follow him for regular master classes on building a high-performance marketing team for your company.