15th January 2002 - H1B News
US Economy, H1B contracting, new Jobs and economy recovery, Tips for H1B...

US economy is still in a bad shape

* There are some positive hopes for improvement in US economy, but still many companies are announcing layoffs. Merrill Lynch cuts 9000 jobs during January-2002. Motorola will cut 1200 more (Motorola announced a total of 48,400 job cuts so far). Ford Motor plans to cut 35,000 jobs. Even if economy is rebounding, it may take at least a year to become normal. There were nearly 20,00,000 Job cuts during year 2001. Rehiring may be the challenging job in this year. Very strict and small budget forced the hiring managers to offer lesser salary.

Unemployment rate will go higher

The U.S. unemployment rate rose to 5.8 percent in December-2001, but the number of job cuts slacked off, pointing to a possible stabilization in the labor market of the world's largest economy. Many economists say the recession, which officially began in March-2001, will end in the first half of this year. However, they caution that even if the economy resumes growing, the unemployment rate will continue to rise for some more time, as businesses hold back on hiring till they are sure that the recovery is sustainable. Many analysts are forecasting that the jobless rate will peak around 7 percent by late summer. A study released on Jan-11-2002 predicts the Sept. 11 terrorist attacks will reverberate through the U.S. economy for years, wiping out more than 1.6 million jobs in 2002 alone. New York City will lose nearly 150,000 jobs in 2002, followed by Los Angeles with 69,000 jobs, and Chicago with at least 68,000 jobs. To find more, Click here

H1B contracting Industry Situation

H1B contracting Industry is still in a worst situation. There are still NO contract programming jobs for H1B holders. Most of the consulting companies are preferring to hire US citizens or Green card holders to fill up their contract openings. Many job advertisements are strictly advertising NO H1Bs. The competition is more and the hourly rate is 30 - 70% of the average market rate. Many companies are hiring permanent employees than contract workers. According to various surveys, more Job openings will come after the second quarter results. Also there will be more openings in DOT-COM industry again.

New Jobs and Economy recovery

More than 90 percent of the private economists say that the end of the recession as taking place sometime before the end of March. In economic downturns, companies often boost worker hours just before they are about to start hiring again. This will further slowdown the new job openings. For more info, Click here

More companies are planning to decrease the number of IT professionals overall in 2002 than those saying they will decrease Internet staff jobs specifically. IT Survey Statistics

H1Bsponsors.com is expanding its operations with placement and consulting agencies in UK to bring more opportunities to our users. There is no FEE for this service, it is absolutely FREE. If you or any of your friends are interested to move into UK, please post the resumes in our site

Save Taxes

This is the time to think about your TAX filing. With proper tax planning, you can reduce your tax liability. Every year new rules, tax rates and deductions have challenged tax payers ability to pay the lowest possible amount of tax. This is particularly true this year in view of the significant changes enacted under the 2001 Tax Relief Act. Let our CPA save your money and prepare your returns. Please click here

Tips for H1B Holders

H1B holders who are waiting in their home country to be called by the employer are advised to wait for some more time till the economy recovers completely. Market will NOT be up and there wont be 1000s of jobs all of sudden. It is a very time consuming process. As long as you are outside USA, your status is legal and you can use your H1B anytime during your VISA validity. Also you can claim the time you spent outside USA for your six years time limit. While returning to US, it is advisable to get a letter from your employer as you are joining with them on so and so date. This is a supporting document to the INS officer at the port of entry to make sure that you are using your VISA legally. (It is advisable to get the letter, even If you are coming first time to US).

To know more about the various options that are available for laid off H1B workers, please visit our H1B News.

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