As far as I know, H1B quota went from 195,000 to 65,000 starting from last year. And if I remembered it right, there are 10,000 reserved for Canada and Singapore, so only 55,000 for other countries. But even the rumor is true, it doesn't mean there is a great shortage of H1Bs, because companies can apply for H1B starting this April(6 months before October) for 2005 quota, so people just started early than before. but it did make it harder for candidates, because they have to find someone willing to sponsor them 6 months before they could work for them. Besides, H1Bs are not cheap labors, their payment have to meet certain standard, which are normally state average salaries for that job category.