News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release
May 10, 2007

CONTACT: Kate Gilman/ Austin Bonner,  (202) 225-4038

Small Businesses Call for Fair Immigration System
Critical need for a process that allows for access to workers and protects national security

WASHINGTON – From problems navigating complicated visas programs to concerns about liability associated with verifying employee status, small business owners face a variety of obstacles in today’s broken immigration system. Representatives from a broad cross section of the economy told the House Small Business Committee today that entrepreneurs need access to a fair immigration system that matches willing workers with businesses that have been otherwise unable to find employees with the required skills.

“This nation’s 26 million small business owners are driving the U.S. economy,” said Chairwoman Nydia M. Velázquez. “A key to their success is access to a strong workforce.  However, it is clear that today’s immigration system is broken and is negatively impacting the labor needs of our small businesses.”

While the Bureau of Labor Statistics projects that 18.9 million new jobs will be created by 2014, there will be only 3 million new workers to fill them—leaving a nearly 16 million-employee gap. In the coming decades, projected job growth will create shortages of qualified workers in all sectors of the American economy. For small businesses, that will mean less innovation and growth. Without their current supply of legal immigrants and undocumented workers, the fruit and vegetable industry would lose between $5 billion and $9 billion annually. Even some high-paying industries have failed to produce enough American-born workers. Today, 34.9 million Americans live in “health professional shortage areas.” Technology companies’ requests for highly skilled immigrants routinely exceed the available supply of H-1B visas; this year, all available 2008 visas were applied for on the first day possible.

“Small business owners have told this committee time and again that nothing makes them prouder than the jobs they create, but many of today’s companies are struggling to find enough workers,” said Chairwomen Velázquez. “As we consider immigration reform, entrepreneurs must have a seat at the table to ensure they can innovate and expand.”

During the hearing, small business owners discussed challenges impacting their ability to hire immigrants and concerns about the requirements the system imposes on them.  Until problems with the current system are addressed, small business owners will continue to struggle with workforce issues.  Today’s hearing demonstrated that reform must address not only the need for access to a solid workforce, but it must also protect national security.     

“Our current immigration system is badly flawed because it fails to provide security or direct workers to the sectors where they are needed,” said Chairwoman Velázquez. “As we work towards a solution, it is critical that the needs of our nation’s small business owners are considered.”

This hearing is the first in a series the committee will hold to ensure that small business concerns are included in balanced immigration reform and other workforce issues. The committee has already addressed access to capital issues leading to medical worker shortages with lending reforms in The Small Business Lending Improvements Act and continues to study the unique workforce challenges facing small technology companies.

Click here to watch video of today’s hearing.

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