In a free market, there never is a shortage. There only are people who don't want to pay the market rate.<p>If your candidate pool is people "recent college graduates with experience in exactly the technologies we are using", then there is a shortage. If you're willing to consider older workers or people who aren't a perfect keyword match, then there are plenty of candidates.<p>It also has a damaging effect. An H1-b visa work is MORE ATTRACTIVE than an American citizen, assuming the same salary and competence, because they're tied to the job.<p>I.e., if you're going to invest in helping your employee acquire skills, it's better to hire the indentured servant rather than investing in an American who can switch jobs as he gains experience.