If you are one of the people who thinks that America’s “immigration problem” is that “illegals are taking our jobs”, you might want to hear about a recent development on the subject:
“The real crisis is not border crossings but a shortage of new arrivals” – writes The Economist in a July 28th article.
Labor shortages are not good for economy. And, as The Economist article reminds us, the growth of America’s labor force was thanks in large part (about 70%) due to immigrants in the 2010s. Starting in 2017, due to the restrictions implemented by the Trump administration, the industries that relied most on foreign workers have seen a steady decline in their work force. It is worth noting that the COVID 19 pandemic was not the root cause of these shortages, and the industries mentioned above were not limited to restaurant and hospitality. Highly skilled professionals were also unable to fill the gabs in fields such as architecture, IT and more.
The perspective is not too encouraging. Cato Institute predicts that labor force will decrease to 163m in 2040 from 166m in 2020 without new arrivals into America’s labor market. If immigration were to return to pre-pandemic levels, the labor force would grow to 178m by 2040.
The many ramifications of this problem are explained in the article. To read it in its entirety, please click here.
As always, should you or someone you know need assistance with an immigration matter, please do not hesitate to contact our firm for assistance.