Today’s Bureau of Labor Statistics (BLS) strong jobs report shows our tight labor market is still a factor impacting inflation. Instead of trying to slow the economy by continuing to raise interest rates on American consumers, a recent report released by FWD.us shows that increasing immigration, and adding immigrant workers to the U.S. labor force, is a preferable and proven pathway that the U.S. government should take to alleviate labor shortages and fight corresponding inflation.
For example, the Biden administration’s recent efforts to open up legal migration pathways through humanitarian parole have already added 450,000 workers to industries with labor shortages, with a potential 170,000 more paroled adults this year working in these short-handed industries. With these new workers, and even more as pre-pandemic immigration levels have resumed, we have seen inflation incrementally decrease. However, more action needs to be taken to stabilize prices for consumers and offer relief to employers for the long-term.
Put simply: the aging workforce will not grow without immigration. By reforming our immigration system to expand the number of immigrants that enter our country each year, reduce the harmful restrictions on immigration, and provide people already here with an opportunity to reach their full potential through a pathway to citizenship, we can drive down inflation and build a stronger economic future for all.
News outlets across the country have featured the report, underscoring how immigration is a clear solution to address immediate and long-term economic challenges:
Bloomberg Law – “Adding new immigrants in the future would not only protect against inflation, but would also raise wages for the average American in future years, the report estimated. But without congressional action, the US won’t be able to add the workers it needs to meet projected labor demands.”
Wall Street Journal Op-Ed – “It’s well-established that immigrants fill labor shortages, promote economic growth and stimulate entrepreneurship and innovation. Our discovery of the link between migration and inflation [in the FWD.us-GMU report] highlights the way that immigrants also help labor markets be more responsive to local changes in demand and supply.”
New York Times – “…But the (parole) programs have attracted broad support in the business community in some conservative states, like North Dakota, where there is deep concern over worker shortages. A report last week from FWD.us, a bi-partisan pro-immigration group, estimated that about 450,000 immigrants who entered the United States on parole programs from Afghanistan, Ukraine, and Latin American countries were filling jobs in industries facing critical labor shortages, including construction, food services, health care and manufacturing…”
EFE News Wire – “According to the [FWD.us-GMU] report, increasing migration levels by 50% would cause the US working-age population to rise 13% by the year 2040, which would keep the U.S labor force growth rate at the same level it has experienced in the last two decades.”
Also featured in Forbes México, Prensa, El Comercio, San Diego Union-Tribune, Telemundo 52, La Conexión , El Nuevo Herald, Yahoo Deportes, Infobae, and more
Forbes op-ed – “Economists say that one of the best ways to reduce inflation is to increase immigration, which can be done through expanding legal channels for temporary workers and admitting more family and employment-based immigrants.”