Source: Fortune
Summary
A new study by the Federal Reserve Bank of San Francisco found that the influx of unauthorized immigrants under President Biden’s open border policy increased the labor force, particularly in manufacturing and construction. The study concluded that the arrival of new workers created new jobs, effectively providing the missing input for industries that needed people to expand. The study also found that the Trump administration’s crackdown on immigration reduced employment in these industries. The Congressional Budget Office agrees, stating that slow immigration will be a strong headwind to expanding the US economy.
Our Reading
The numbers tell one story.
The study’s findings suggest that the US employment growth is likely to face downward pressure as long as declines in unauthorized immigrant worker flows continue. The CBO predicts tepid increases in the labor force, hovering at 0.4% from 2026 to 2034, which will put downward pressure on GDP growth and slow the construction of new housing. The CBO also stresses the weak labor force outlook as a major reason for its projection that national income will grow at only 1.8% annually from 2027 to 2036. The study’s conclusion that the arrival of new workers created new jobs effectively providing the missing input for industries that needed people to expand is a familiar story. The numbers are clear: immigration is a primary force in driving the American growth machine.
Author: Evan Null
