Tech Workforce Survey Reveals Nearly Half Say U.S. is Falling Behind Rest of the World | Trade and Industry Development

Tech Workforce Survey Reveals Nearly Half Say U.S. is Falling Behind Rest of the World

Feb 24, 2025

Tech workforces are central to driving innovation, economic growth, and productivity. It’s often the key to new advances in technology that revolutionize how everyday Americans live and work– from the social media revolution to mobile payments like Venmo to AI taking the world by storm, tech is often the spark of mass change in American society. But who is actually doing all that work?

A lively debate on the workforce is unfolding online between tech moguls like Elon Musk and some Americans around the use and importance of the H1B visa holder. H1B visa holders are “specialty” visas, with a requirement of advanced degree or technical knowledge, and their visas are tied to a specific job/employer.

H1B visas are especially popular in the tech sector, with many engineers, programmers, and other technical roles coming over on visas. But how widespread is it, and how do American tech workers feel about the arrangement?

Howdy.com surveyed 1,004 tech workers, including some H1B holders, on their views of the work arrangement. See study here.

46% of U.S. tech workers say America is falling behind in the tech sector

One thing is very clear: nearly 1 in 2 U.S. tech workers think that America is falling behind the rest of the world when it comes to workforce skills. Over half (51%) think America’s education system is failing to prepare the next generation of tech workers, and 28% feel behind themselves when it comes to education. This results in anxiety: 27% worry their jobs will be outsourced internationally.

Tech worker sentiment on H1B and outsourced workers by Howdy.com

So how many tech workers actually have coworkers on H1B visas? It turns out, most of them: 55% of the tech workers we surveyed have H1B coworkers; they comprise an average of 17% of staff. These tech workers noted that nearly 2 in 3 H1B visa holders occupy jobs formerly held by U.S. citizens; this might be why 1 in 5 tech workers fear they will be replaced by an H1B visa holder in the future.

Many companies also outsource staff, or hire workers abroad; 57% of tech workers surveyed have outsourced coworkers who represent about 44% of staff at their respective employers. Some companies avoid aligning time zones by hiring a bit closer to home: 65% engage in nearshoring, or hiring workers based in either Canada or Latin America.

Are tech companies hiring internationally in 2025?

2025 is proving to be an even more global year in the tech sector: according to our survey, 34% of tech companies are hiring more H1B visa holders according to tech workers, and 21% are planning on outsourcing internationally; 10% are planning on nearshoring this year to Latin America or Canada.

As for how many jobs are available in the technology sector, TechTarget’s 2025 Outlook notes that tech sector job growth is slated to exceed any other sector globally– despite a massive skill shortage that will result in over 85 million unfilled jobs by 2026.

1 in 4 tech workers say the H1B visa is not a fair arrangement for workers

75% of tech workers say H1B visa holders fill skill gaps in the workplace and 86% say they’re held to the same standard as U.S. citizens at their companies, but 1 in 4 tech workers have also noticed their H1B colleagues are paid less.

Of the H1B visa holders we surveyed, a shocking 57% said their immigration status had been threatened at some point in their workplace. Not only that, but 1 in 4 tech workers say the H1B visa is not a fair arrangement for workers.

H1B visa holders occupy predominantly mid-level and entry-level positions; tech workers only noted 13% made it to senior level positions at their companies. Additionally, most H1B visa holders tend to work in IT Support (76%), followed by Customer Support (43%), DevOps (41%), Hardware Development (33%), and Marketing (29%).

As the tech workforce becomes increasingly global, it’s important to understand what works best for each company. Some might need to be fully distributed globally, while others are more effective based in a single office. H1B workers will continue to be a possible solution to skill gap problems– but they’re not the only option. Whether hiring H1B workers, nearshoring, or investing in other solutions, American tech companies are increasingly connecting disparate parts of the world.

Frequently Asked Questions
Where do H1B visa holders come from?
According to the U.S. Citizenship and Immigration Services, the vast majority of H1B visa holders come from India at 74.5% of all H1B visas; after India, China (11.8%), Canada (1%), South Korea (.9%), and the Philippines (.6%) round out the top 5. We asked tech workers to name the countries they thought provided the most H1B visas, and they were mostly correct: the top country named was India.

Which occupation has a higher chance of providing an H1B visa?
Within the tech sector, tech workers noted that their H1B colleagues worked primarily in IT support, customer support, and DevOps.

Are H1B visa holders good for the U.S. economy?
Most tech workers (82%) believe they are, though when asked whether these workers are good for the U.S. workforce, 19% disagreed.

How much does it cost to hire an H1B worker?
According to a Forbes analysis of associated costs, application fees, and other expenses associated with hiring an H1B worker, it could cost over $33,000 to hire an H1B worker. First time visa holders are a bit more expensive, and filing extensions to keep the workers longer than their initial period can also cost thousands per worker. This typically results in more large tech companies embracing H1B visa holders as they are able to hire them at scale, while smaller companies might find the associated costs of bringing workers into the U.S. prohibitive, and instead find talent via nearshoring or outsourcing.

Methodology

In January 2025, we surveyed 1,004 U.S.-based tech workers from around the United States on their opinions and experiences with H1B visas and outsourcing. 50% were men, 48% women, and 2% either nonbinary or chose not to disclose. Ages ranged from 19-78 with an average age of 38.

Visit Howdy.com and see the study here.

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