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The U.S. Economy Is Surpassing Expectations. Immigration Is One Reason.

Immigrants aided the pandemic recovery and may be crucial to future needs. The challenge is processing newcomers and getting them where the jobs are.

The U.S. economic recovery from the pandemic has been stronger and more durable than many experts had expected, and a rebound in immigration is a big reason.

A resumption in visa processing in 2021 and 2022 jump-started employment, allowing foreign-born workers to fill some holes in the labor force that persisted across industries and locations after the pandemic shutdowns. Immigrants also address a longer-term need: replenishing the work force, a key to meeting labor demands as birthrates decline and older people retire.

Net migration in the year that ended July 1, 2023, reached the highest level since 2017. The foreign-born now make up 18.6 percent of the labor force, and the nonpartisan Congressional Budget Office projects that over the next 10 years, immigration will keep the number of working Americans from sinking. Balancing job seekers and opportunities is also critical to moderating wage inflation and keeping prices in check.

International instability, economic crises, war and natural disasters have brought a new surge of arrivals who could help close the still-elevated gap between labor demand and job candidates. But that potential economic dividend must contend with the incendiary politics, logistical hurdles and administrative backlogs that the surge has created.

Visits to Texas on Thursday by President Biden and his likely election opponent, former President Donald J. Trump, highlight the political tensions. Mr. Biden is seeking to address a border situation that he recently called “chaos,” and Mr. Trump has vowed to shut the door after record numbers crossed the border under the Biden administration.

Since the start of the 2022 fiscal year, about 116,000 have arrived as refugees, a status that comes with a federally funded resettlement network and immediate work eligibility. A few hundred thousand others who have arrived from Ukraine and Afghanistan are entitled to similar benefits.

The foreign-born labor force has rebounded strongly

The number of workers in the United States as a share of how many there were in February 2020, by worker origin

Source: Bureau of Labor Statistics

By The New York Times

Immigrants are more likely to be working

The labor force participation rate for foreign-born U.S. residents rebounded faster than it did for those born in the United States

Source: Bureau of Labor Statistics

By The New York Times

Work permits are finally flowing for humanitarian migrants

The number of employment authorization documents granted to immigrants seeking protection in the United States

Note: Data includes permits granted to refugees, public interest parolees, as well as those with a pending asylum application, Temporary Protected Status and people who have been granted asylum.

Source: U.S. Citizenship and Immigration Services

By The New York Times

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Source: Economy - nytimes.com


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