The Great Tech Worker Divide

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The result is that even as some are thriving, other U.S. tech workers are falling behind. The mean salary for computer and mathematics-related jobs was $69,240 last year, or $850 per year less than in 2000 adjusted for inflation. Tech worker advocates and some economists say the reason for the stagnation is that U.S. tech companies have been able to manipulate the labor market by bringing in guest workers. "Employers are asking the government to intervene in the labor market to ensure they have a steady supply of cheap workers," says Marcus Courtney, co-founder and president of WashTech, a Seattle-based union with 1,500 members. "This is not about a labor shortage—it's about political power."

Shortages Worsen

Microsoft's Schofield says that such assertions simply don't make sense. The company has one of the largest stashes of cash in the world and gushes profits every quarter. Saving a few thousand dollars in salary is much less important than finding the next hotshot techie who can help dream up a new billion-dollar business. Microsoft is one of the most active American companies in the H-1B visa program, receiving 3,117 certifications in fiscal year 2006. But Schofield says that H-1B workers are on the same pay scale as U.S. workers. Government records show that the median salary for Microsoft's H-1B workers was $82,500, typically at or above the prevailing wage for similar positions.

In the U.S., Microsoft is currently seeking employees in five main areas: software development engineers, who design complex software; research software development engineers, who research advanced software design and theory; software architects, who design large-scale projects at the highest levels; program managers, who develop software and lead teams of engineers, and localization software engineers, who customize software for foreign languages.

Schofield is concerned that if Congress does not offer relief by raising the annual cap on H-1B visas and boosting the number of green cards, Microsoft will have to source more employees overseas. Microsoft, along with Intel (INTC), Texas Instruments (TXN), Motorola (MOT), and others, has been pushing for the H-1B cap to be raised from the current 65,000 a year to at least 115,000.

Schofield feels the shortages may get worse. Statistics show declining interest in tech degrees at all levels, and he is worried the hunt for talent will only get harder. In math, science, and engineering, for example, 50% or more of the post-graduate degrees at U.S. universities are now awarded to foreign nationals. "Enrollment in computer science and engineering is dropping like a rock," says Schofield. "There is already huge competition for people with really deep skills, and it will only get worse."

Change Needed

In addition to advocating for more visas and green cards, Microsoft is trying to boost enrollment in computer degree programs and help U.S. midcareer workers update their skills. Schofield says Microsoft representatives, including Gates himself, are visiting high schools and colleges in an attempt to dispel three myths: that offshoring means the future for tech work is bleak, that tech jobs are mundane and not "cool," and that there is little opportunity left to innovate in computer science. "We're sending the message that this is a vibrant industry doing creative things," says Schofield. "Exciting things are happening, and individuals can have a real, lasting impact."

Critics say the emphasis should be on public policy changes, not public relations. "The presumption is that American students are irrational, and that they are leaving great opportunities on the table," says Hira. "I find that hard to believe. Is there a shortage of investment bankers? No, because they are paid a lot of money. Wages do matter."

As advocates and politicians take up the issue of immigration reform for high-skill workers, the one thing that Schofield and Sawade can agree on is that the current situation needs to change. The question now is what additional common ground can be found between them.

Herbst is a reporter for BusinessWeek.com in New York .