Immigration crucial in addressing labor gaps

The United States economy is facing a widening gap in its workforce, according to a report by the bipartisan immigration group, the National Immigration Forum (NIF). With more Baby Boomers leaving the workforce and a lower birth rate, American citizens alone cannot fill all the available roles. Data released by the Federal Reserve Bank of San Francisco on Monday showed that around a fifth of the easing of labor market “tightness” in 2023 could be attributed to a spike in immigration. Major cities like New York and Los Angeles saw an even greater impact, a trend expected to continue as immigrant numbers rise. Jennie Murray, President of the NIF, emphasized the need for immigrants to fill job vacancies, stating, “Now more than ever, we need to make sure we have folks coming into the system that can work.” Companies in states like Nebraska are taking measures to attract foreign workers, including offering English courses and adapting holidays to help them adjust to their new life in the U.S. The Federal Reserve predicted that around 3.3 million people will have net-migrated to the U.S. in both 2023 and 2024, compared to yearly averages of around 1 million in the 2010s. This influx has eased labor market issues by reducing the “job market-to-vacancy ratio.” Immigrants constitute a significant portion of various essential sectors, including 73% of all agricultural workers, over 30% of construction workers, 25% of STEM workers, and 28% of all highly skilled healthcare professionals.

Labor market impact from immigration

Murray recounted her trip to Poland during the Russia-Ukraine war in early 2022, describing how Canadian officials were actively recruiting refugees, highlighting the need for the U.S. to be more open to those wanting to come and work. The NIF emphasizes the importance of bipartisan cooperation in addressing immigration issues. Murray stated, “We have wonderful border frameworks that create resources, order, and security,” adding that the asylum system needs adjustments to prevent abuse while ensuring protection. States with higher influxes of new arrivals, like New York and New Jersey, saw more jobs filled compared to other states, according to the Federal Reserve’s analysis. Even undocumented migrants contribute to their communities through taxes, though many avoid accessing government services out of fear of deportation. Murray stressed the importance of political leaders taking decisive steps to address these issues, saying, “We need our leaders to step up and say: ‘enough is enough.'”