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The PERM Labor
Certification While There Have Been Employee Layoffs |
| Hi
William, My company will submit PERM Labor Certifications for me next month, but this week there are employee layoffs in my company also. Is this a problem for my PERM Labor Certifications? Answer, An employer may need a foreign worker even after layoffs because the company may have specific labor needs that local workers cannot fill, such as a shortage of highly-skilled workers in a particular field, geographic location, or for specific projects. Other reasons include strategic advantages like accessing a global talent pool, cost savings, and enhancing diversity, which can coexist with a domestic reduction in force. Additionally, a company may be restructured, with layoffs happening in one area while a new or expanded role opens up elsewhere, or the timing of economic changes means new hires are needed months after layoffs occurred. This happens when operations consolidate, or otherwise restructure. The needs of the employer often shift as a business is modified to adapt to changes, including the economy. There may be an increase in one segment of the business, with a downturn in another. Timing also plays a factor. The employer may have the need to lay people off, for example, early in the year. Should there be an improvement in the economy, however, or if the employer adapts and there is an increase in demand for the company’s products and/or services, then more employees may be needed four to six months later. The specific reasons for hiring foreign workers alongside layoffs may include: 1) Geographic or
occupational needs: Layoffs may occur in one physical location or
department, while the company has a critical need for a foreign worker
in a different location or for a very specialized role that is in short
supply.
2) Access to a unique skill set: The company might be trying to fill a niche role requiring specialized skills that are in short supply in the domestic labor market, despite having laid off other employees. 3) Strategic restructuring: A company might be reorganizing its operations. Layoffs could be part of this, but the restructuring may also create a need for new roles that are filled by foreign workers to improve productivity or expand into new markets. 4) Timing: A company might have had to lay off workers in the early part of the year, but by mid-year, an improvement in the economy or increased demand for their products/services requires them to hire again. 5) Cost-saving strategy: Hiring a foreign worker, especially from a region with a lower cost of living, can be a way to reduce overall labor costs, which can be a strategic advantage even if the company is also cutting domestic staff. 6) Diversity and new perspectives: Companies may see hiring foreign workers as a way to increase the diversity of their workforce, which can boost innovation, and they may continue this strategy even as they downsize in other areas. |
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