A Wall Street Journal story looks at the reasons behind the extraordinary drop in H-1B applications. Here's the money quote:
Companies that use H-1B visas argue the market, rather than
Congress, should dictate the number of visas issued. The fact that the
65,000-visa cap hasn't been reached this year shows that the market
will temper demand when necessary, said Jenifer Verdery, director of
work-force policy at Intel Corp., who represents a coalition of companies that use the visas.
"Contrary to the claims of H-1B critics, if importing cheap labor
were the goal of H-1B visa employers, these visas would have been gone
on the first day applications were accepted last spring," Ms. Verdery
said. "In slow economic times, such as today, the demand decreases and
the market takes over, which is as it should be."