Even as busloads of immigrants sent north by border state officials have strained cities and ignited new political firestorms in Washington, new data shows

his are

driving home more and more often

critically crucial

role that immigrants will play

American USA

businesses and the economy as a whole, especially in California.

Net immigration to the U.S. reached a 22-year high of 1.14 million last year, according to recently released data from the Census Bureau. According to calculations by Brookings demographer William Frey, California’s total population, which lost 75,000 people between July 2022 and July 2023, would have fallen by more than 225,000 if not for international migration.

And that resurgence in immigration has not only given the US a modest increase in its overall population, but also…

So

done something much more

critically essential

for the economy: it has fueled the country’s workforce over the past year.

Foreign-born people aged 16 and over

older than older

According to the Bureau of Labor Statistics, they represent about 18% of the U.S. working-age population, but were responsible for more than 60% of the country’s labor force growth last year.

As the overall population ages, more baby boomers retire, and family birth rates remain relatively low, the size of the

American USA

The working population is increasingly dependent on immigration. That’s especially true in California, as it has lost many residents to other states, including more recently wealthier people with higher incomes.

The richest Californians are fleeing the state. Why that is very bad news for the economy

Better technology can help boost productivity, but if the U.S. economy is to continue growing and provide the opportunity for a higher standard of living for more citizens, a growing workforce is also critical, most economists agree.

While last Friday’s December jobs report showed resilient employment growth, it also offered new signals that the economy may be hitting a brick wall when it comes to employment.

the labor work

participation and the return of coercion

employees these

WHO

were shocked by being excluded from the labor market

the pandemic.

But the same report showed a rising tide of foreign-born workers, including many more who appear to be on the sidelines of the labor market.

There may be a larger shadow pool of available workers than commonly thought, said Bob Schwartz, a senior economist at Oxford Economics in New York. He said a growing supply of workers could help cool wage growth, a key inflation factor.

While illegal immigration and the out-of-control influx from the southern border have drawn attention in recent months as many in Latin America flee violence and poverty, newcomers to the U.S. have come from many corners of the world, including more migrants from Africa and refugees from Ukraine, among others.

Taken together, they could provide additional breathing room for an economy that is cash-strapped for workers.

Low wages, poor services, little room for progress: migrant workers describe discrimination in the workplace

That underlying reality could now begin to break the political impasse over immigration, in which Republicans have demanded drastic measures to curb immigration while Democrats have been equally adamant about opposing crackdowns.

What may force both parties to consider compromises is that both the predominantly conservative business leaders and the often liberal mayors and state officials of big cities are beginning to feel the pressure of the labor shortage.

Without much public outcry, President Biden and many Democrats in Congress are being pressured by mayors and other leaders in New York, Denver, Chicago and other cities to get tougher as they are swamped with expensive-to-care migrants sent through Texas . and other border states.

Meanwhile, all but the most far-right Republicans in Congress are being quietly urged by some business leaders to ease up on the labor shortage.

“This is a clear case of right-wing Republicans at odds with business,” said Dean Baker, a senior economist at the Center for Economic and Policy Research, a left-leaning think tank.

based

in Washington.

Companies report continued problems in finding staff. The National Federation of Independent Business’ December survey found that 40% of small business owners had job openings they couldn’t fill. The problem has been especially acute in construction and transportation, but hospitality and health care also have many entry-level positions that analysts say can be filled relatively quickly by immigrants, who tend to be younger and highly motivated to work.

In fact, business and political leaders have urged Washington to grant work permits, among other aid, to deal with the financial and social burden of dealing with the flow of migrants.

Conservatives have often argued that immigrants take jobs away from American citizens and depress wages for everyone.

While although

There is evidence that large-scale international migration may put downward pressure on some lower-wage jobs. Most analysts agree that immigration has historically been a net plus for the economy.

American USA

economy, increasing consumption and providing vitality and entrepreneurial energy.

Left out of DACA and traditional jobs, young immigrants are starting businesses to get ahead

Experts say immigration in the near future could make the difference between whether the country’s population grows or shrinks. And for many employers, it can also be crucial.

It offers companies the opportunity to expand. Many businesses are closing because they can’t get workers, Baker said.

The US unemployment rate was 3.7% in December, almost 3.7%

half century 50 years

low. And even though vacancies and the number of laid off workers have fallen from the highest levels, there are still 1.6 open positions for every unemployed person.

Labor participation has not yet fully returned to pre-pandemic levels. The share of working-age people employed or looking for a job stood at 62.5% last month, up from 63.3% on the eve of the pandemic in late 2019.

Nicholas Eberstadt, a political economist at the American Enterprise Institute, a right-wing think tank in Washington, said female employment is setting records. But many employees are 55 years and older

older than older

have not returned as previously expected, he said, and the employment rate of prime-age men remains as low as the low levels of 1983.

What are day laborers hired for: the dangerous, the rude, the sometimes illegal

Immigration has been very positive for the U.S., he said, noting that he supports legal immigration. The problem right now is the chaos at the southern border. … What I worry about is that it will poison public support for immigration.

That chaos is largely the result of political paralysis in Washington. In a presidential election year when the battle lines are as bitterly entrenched as they are today, the immediate prospects for compromise still appear bleak. But mounting data on labor shortages and weak population growth suggest change may be closer than it seems.