What they want is more flexible workers. Guest workers are very flexible. Given that they are already immigrants, whats the difference to them if they work in New-york the first half of the year and Seattle the second?
I went through this is the late 90s/ early 2000s. I'd get a job as some company was building some new product, have solid work for a year... then there'd be the long, inevitable breakup as they found a way to lay us off another year later. So I'd go onto another project... same thing. Then my current company did the guest worker thing... I hear a lot of nonsense about them, mostly indian... not being qualified. I'd have to disagree. I'd say there are good and bad just like US workers, but there are certainly stars that stand out. Some of our best coders are from india, and I actually found out during our last pot luck that not all Indian food has curry in it and I even liked some of it. I got hired on permanently because they know I'm not just going to move away. The distinction of who goes at the end of the project and who doesn't is clear. The temps. Before, I could have been working somewhere for 5yrs, then bring in 20 new us workers for a project and when that's over 20 go home. It may be the new people, but it might be me!
The many and varied services that do projects for you are Terrible I've been through so many nightmare projects that were outsourced like that... uggg. They charge way too much and deliver the lowest quality work they possibly can.
I'm not sure what the answer to this dilemma is, but it's not simple at all.