Won’t this mean that companies will move jobs to India, China or even Canada?
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If you remove the option for sponsorship then these workers will still be working their jobs because they're talented and in demand, they'll just be doing it from their home country instead for lower compensation.
Many H-1B workers request sponsorship from employers despite having the ability to work from local offices because they have in-demand skills that give the leverage to ask for it knowing that it will result in better opportunities.