Is it true that H1B employees are paid below what similarly qualified local Americans are? If that is true, then American fears of job security would be heightened, because the cost to company of hiring H1B guys would be lower than that of hiring local Americans and rational profit motivated organisations would prefer to hire the former. The H1B cap has been reached for 2006. However, a considerable chunk of the 20,000 (each for 2005 and 2006) exemption for individuals with US Masters or higher degree still exists. This study here, shows that there is no clear correlation between increase in immigrant employment and loss of jobs for American born individuals. The H1B cap is like a quota on employment and works the same way. Companies employing foreign individuals spend increasing amounts of resources on finding different ways to go around the quota restrictions which is wastage of resources.