The economy of the United States is grappling with a widening workforce gap, as highlighted in a report by the bipartisan National Immigration Forum (NIF). The departure of more Baby Boomers from the workforce coupled with a declining birth rate means that there are not enough American citizens to fill all available positions. Data from the Federal Reserve Bank of San Francisco indicates that approximately one-fifth of the easing of labor market tightness in 2023 can be attributed to increased immigration.
Cities like New York and Los Angeles are experiencing a significant impact, a trend that is expected to continue as immigrant numbers rise. Jennie Murray, President of the NIF, stressed the importance of immigrants filling job vacancies, stating, “Now more than ever, we need to make sure we have folks coming into the system that can work.”
Businesses in states such as Nebraska are implementing strategies to attract foreign workers, including providing English language courses and adjusting holidays to aid in their transition to life in the U.S.
The Federal Reserve has projected that approximately 3.3 million individuals will have net migrated to the U.S. in both 2023 and 2024, compared to yearly averages of around 1 million in the previous decade. This influx has helped alleviate labor market challenges by reducing the job market-to-vacancy ratio.
Immigrants play a crucial role in various essential sectors, accounting for 73% of agricultural workers, over 30% of construction workers, 25% of STEM workers, and 28% of highly skilled healthcare professionals.
Labor market impact from immigration
Murray shared her observations from a visit to Poland during the Russia-Ukraine conflict in early 2022, recounting how Canadian officials were actively recruiting refugees and underscoring the importance of the U.S. being more welcoming to those seeking employment opportunities. The NIF emphasizes the significance of bipartisan collaboration in addressing immigration challenges.
Murray emphasized the need for adjustments in the asylum system to prevent abuse while ensuring protection. Analysis from the Federal Reserve revealed that states with higher influxes of newcomers, like New York and New Jersey, had more job vacancies filled compared to other states. Even undocumented migrants contribute to their communities through taxes, despite many avoiding government services out of deportation fears.
Murray underscored the gravity of political leaders taking definitive actions to tackle these challenges, stating, “We need our leaders to step up and say: ‘enough is enough.'”
