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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 stronglyThe 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 StatisticsBy The New York TimesImmigrants are more likely to be workingThe 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 StatisticsBy The New York TimesWork permits are finally flowing for humanitarian migrantsThe 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 ServicesBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. and China, by the Numbers

    From movie theaters to military spending, here’s how one of the world’s most important economic relationships stacks up.China and the United States are locked in an increasingly intense rivalry when it comes to national security and economic competition, with American leaders frequently identifying China as their greatest long-term challenger.Yet the world’s two largest economies, which together represent 40 percent of the global output, remain integral partners in many ways. They sell and buy important products from each other, finance each other’s businesses, provide a home to millions of each other’s people, and create apps and movies for audiences in both countries.As Treasury Secretary Janet L. Yellen meets with top Chinese officials in Beijing this week, her challenge will be to navigate this multifaceted relationship, which ranges from conflict to cooperation. Here are some figures that illustrate the links between the two nations.Economic and military powerThe U.S. economy continues to outstrip China’s by dollar value: In 2022, Chinese gross domestic product was $18 trillion, compared with $25.5 trillion for the United States.But China’s population is more than four times America’s. And the economic picture looks different when adjusted for local prices: Based on purchasing power parity, China’s share of world G.D.P. is 18.9 percent, according to the International Monetary Fund, surpassing the United States at 15.4 percent.China has provided more than a trillion dollars for global infrastructure through its Belt and Road Initiative, which analysts see as an effort to project power around the world.The rapid growth and modernization of China’s military have sparked concerns in the United States. China has more naval vessels than the United States and more military personnel, with 2.5 million in 2019.But American armed forces are far better equipped, and the United States still spends more on defense than the next 10 countries combined — $877 billion in 2022, compared with $292 billion in reported spending by China.Trade relationsDespite the rising tensions, trade between the countries remains extremely strong. China is America’s third-largest trading partner, after Canada and Mexico.U.S. imports of goods and services from China hit a record $563.6 billion last year. But the share of U.S. imports that come from China has been falling, a sign of how some businesses are breaking off ties with China.China is also a major export market, with half of all soybeans that the United States sends abroad going to China. The U.S.-China Business Council estimated that U.S. exports to China supported nearly 1.1 million jobs in the United States in 2021.China dominates supply chains for both critical and everyday goods. It is the world’s largest producer of steel, solar panels, electronics, coal, plastics, buttons and car batteries, and it has quadrupled its car exports in just two years, becoming the world’s largest auto exporter through its growing clout in electric vehicles.The United States has steadily expanded sanctions against Chinese companies and organizations because of national security and human rights concerns, placing 721 Chinese companies, organizations and people on an “entity list” that restricts their ability to buy products from the United States, according to the Commerce Department.Financial and corporate tiesChina is one of America’s largest lenders and holds nearly $1 trillion of U.S. debt.Members of the S&P 500 index, which tracks the largest public companies in the United States, generate 7.6 percent of their revenue in mainland China, the biggest source of international sales by far, according to FactSet. The revenue that large U.S. firms derive from China is more than their revenue from the next three countries — Japan, Britain and Germany — combined.But the outlook for American companies doing business in China has turned grimmer. In the American Chamber of Commerce in China’s most recent survey of U.S. companies in China, 56 percent described their business as unprofitable in 2022, with some blaming China’s strict Covid-19 lockdown measures.Also in the survey, 46 percent of American companies thought that U.S.-China relations would deteriorate in 2023, while only 13 percent thought they would improve.Personal and cultural connectionsThe United States is home to nearly 2.4 million Chinese immigrants, making it the top destination for Chinese immigrants worldwide. Chinese immigrants in the United States are more than twice as likely as U.S.-born adults to have a graduate or professional degree.In the 2021-22 school year, 296,000 students from China attended U.S. institutions of higher learning, nearly a third of all international students in the United States.Roughly three in four Chinese Americans experienced racial discrimination in the previous 12 months, and 9 percent were physically intimidated or assaulted, according to a survey by Columbia University and the Committee of 100, a Chinese American leadership organization.Long considered a low-end manufacturer, China has become more of a source for innovation and cultural creation. TikTok, the popular social media app whose parent company is China’s ByteDance, says it has more than 150 million users in the United States.Last year, 20 American movies opened in China, and their box office total was roughly $673 million, according to Comscore. China had more than 80,000 movie screens by late 2021, compared with roughly 39,000 in the United States.Pandemic restrictions have made it much harder to travel between the countries. Air carriers are running only 24 flights a week between the United States and China, compared with about 350 before the pandemic.Sapna Maheshwari and Nicole Sperling contributed reporting. More

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    Immigration Rebound Eases Shortage of Workers, Up to a Point

    While the Biden administration has accelerated processing after Trump-era restrictions and a pandemic slowdown, visa backlogs remain large.The flow of immigrants and refugees into the United States has ramped up over the past year, helping to replenish the American labor force after a decline that began with restrictions imposed under the Trump administration and that was compounded by the pandemic.The Biden administration has been accelerating visa processing and broadly using humanitarian parole programs for migrants fleeing war and economic instability. Those efforts have driven a rebound in the foreign-born population — welcome news for the Federal Reserve, which has been concerned that a persistent shortage of workers could send wages higher and lead inflation to become entrenched.Friday’s employment report for January, showing a blockbuster gain of 517,000 jobs, confirms that the economy continues to demand more labor. Moderating wage growth, however, suggests that enough workers are arriving to keep costs in check.“When the unemployment rate goes down, you would normally expect wage inflation to go up, but that’s not what’s happening,” said Torsten Slok, chief economist at Apollo Global Management. “So there must be something else moving in the labor force, and there is a very likely explanation here that immigrants are coming in and taking jobs.”But despite the resurgence in the foreign-born labor force — about four-fifths of it are people legally allowed to work in the United States, by one calculation — there are bottlenecks.Legal immigration remains below pre-Trump levels. Hundreds of thousands of people await interviews with U.S. consular officials to obtain immigrant visas. Millions of asylum cases are pending, and getting work authorization for those already here can take years.The uneasy state of immigration policy, a contentious political issue for years, is felt every day by Al Flores, the general counsel at a group of Tex-Mex restaurants in the Houston area and a restaurant owner himself.When the restaurants reduced staffing during the pandemic, many of their workers went to places that were hiring — like the construction industry — and rehiring was a challenge given the sharp immigration slowdown of 2020.The company now employs about 2,500 people, at least 12 percent of whom are able to work under the Deferred Action for Childhood Arrivals program, or DACA, which has been in jeopardy since Mr. Trump decided to terminate it; challenges are winding their way through the courts. Another 10 percent have temporary protected status, a designation granted to people who have fled from countries in turmoil, which often allows them to stay in the United States for years.Alma Moreno, a cook at Hacienda Tacos y Tamales in Houston, is a Salvadoran who has temporary protected status in the United States.Callaghan O’Hare for The New York Times“It’s gotten a little bit better, but we’re seeing a drop in permanent visas and an increase in temporary ones,” Mr. Flores said. “At some point those folks have to move on, sometimes to other countries where there’s more open arms. And that’s tough for us, because we need the labor.”The State of Jobs in the United StatesEconomists have been surprised by recent strength in the labor market, as the Federal Reserve tries to engineer a slowdown and tame inflation.Job Trends: The Labor Department reported that the nation’s demand for labor only got stronger in December, as job openings rose to 11 million.Burrito Season: Chipotle Mexican Grill, the fast-casual food chain, said that it planned to hire 15,000 workers ahead of its busiest time of year, from March to May.Retail Industry: With consumers worried about inflation in the prices of day-to-day necessities like food, retailers are playing defense and reducing their work forces.Tech Layoffs: The industry’s recent job cuts have been an awakening for a generation of workers who have never experienced a cyclical crash.The path of immigration policy will have a substantial bearing on the nation’s supply of workers, which has been expanding more slowly as native-born workers have fewer children. The Congressional Budget Office projects that by 2042, net immigration will be the nation’s only source of population growth.The dip in immigration occurred in multiple ways, beginning with the inauguration of Donald J. Trump as president in 2017. The cap on refugees allowed to enter the United States dropped to 15,000 in 2020, the lowest level in decades. Measures like a ban on immigrants from Muslim countries, even though the courts eventually overturned it, deterred people from trying to come.Some of Mr. Trump’s changes were more subtle. The Department of Homeland Security slow-walked visas by asking for more evidence and interviews, said Shev Dalal-Dheini, head of government affairs for the American Immigration Lawyers Association, and then it shut down processing — which is largely paper-based, not electronic — during the pandemic.Even when lockdowns eased, U.S. Citizenship and Immigration Services had a difficult time ramping back up because with no processing fees, it lacked the funds to rehire staff who had left. Staffing at U.S. embassies, which conduct visa interviews in other countries, had also atrophied.“They’ve had to play catch-up with that for a long, long time,” said Ms. Dalal-Dheini, who left the immigration agency in 2019. “Once the Biden administration came in, they reset some of those policies designed to slow down the process, and then were focused on building back up their work force.”The result has been that visas for visitors, temporary workers and permanent immigrants rose to 7.3 million in 2022, up from 3.1 million the previous year but still down from the more than 10 million issued annually in the three years before Mr. Trump took office. President Biden also granted humanitarian parole and temporary protected status to migrants from several more countries, including Ukraine and Afghanistan, allowing hundreds of thousands more people to stay and the opportunity to work in the United States.The number of new citizens hit a 15-year high in 2022. And the cap on refugees was raised to 125,000 in 2022, although the administration managed to process only about 25,000.Those measures increased net immigration to about a million people last year, the highest level since 2017, according to the Census Bureau. The foreign-born work force grew much more quickly than the U.S.-born work force, Labor Department figures show. (According to an analysis by FWD.us, a business-backed group that favors more immigration, 78 percent of the foreign-born labor force has legal work status.)The growth in immigration has helped power the job recoveries in leisure and hospitality and in construction, where immigrants make up a higher share of employment, and where there were bigger increases in wages and job vacancies. More

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    Brexit Turns 3. Why Is No One Wearing a Party Hat?

    The divorce between Britain and the European Union has become the dark thread that, to many, explains why Britain is suffering more than its neighbors.LONDON — The third anniversary of Britain’s departure from the European Union passed without fanfare on Tuesday, and why not? Brexit has faded from the political forefront, unmentioned by politicians who don’t want to touch it and overlooked by a public that cares more about the country’s economic crisis.The severity of that crisis was underscored by the International Monetary Fund, which forecast this week that Britain will be the world’s only major economy to contract in 2023, performing even worse than heavily blacklisted Russia.The I.M.F. only indirectly attributed some of Britain’s woes to Brexit, noting that it suffered from a very tight labor market, which had constrained output. Brexit has aggravated those shortages by choking off the pipeline of workers from the European Union — whether waiters in London restaurants or fruit and vegetable pickers in fields.The effects of Brexit run through Britain’s last-in-class economy because they also run through its divided, exhausted politics. In a country grappling with the same energy shocks and inflation pressures that afflict the rest of Europe, Brexit is the dark thread that, to some critics, explains why Britain is suffering more than its neighbors.“One of the reasons for our current economic weakness is Brexit,” said Anand Menon, a professor of West European politics at King’s College London. “It’s not the main reason. But everything has become so politicized that the economic debate is carried out through political shibboleths.”Years of debate over Brexit, he said, had contributed to a kind of policy paralysis. “If you look at it, it is astounding how little actual governing has happened since 2016,” Professor Menon said. “It has been seven years, and virtually nothing has been done on a governmental level to fix the country’s problems.”Inflation, though it has eased slightly, continues to run at a double-digit rate.Neil Hall/EPA, via ShutterstockThose problems continue to proliferate. Inflation, though it has eased slightly, continues to run at a double-digit rate. Britain’s National Health Service is facing the gravest crisis in its history, with overcrowded hospitals and hourslong waits for ambulances. On Wednesday, Britain will face its largest coordinated strikes in a decade, with teachers, railway workers and civil servants walking off the job.Not all these problems are wholly, or even principally, a result of Brexit. But tackling any of them, experts said, will require bolder solutions than the government of Prime Minister Rishi Sunak has yet proposed. Owing largely to Brexit, Mr. Sunak’s Conservative Party remains torn by factions that thwart action on issues from urban planning to a new relationship with the European Union.Part of the problem, experts said, is that the neither the government nor the opposition Labour Party is prepared to acknowledge the negative effects Brexit has had on the economy. The government may not ring the bell of Big Ben to celebrate the anniversary, as it did on Brexit day in 2020. But to the extent that Mr. Sunak refers to Brexit, he still portrays it as an undiluted boon to the country.“In the three years since leaving the E.U., we’ve made huge strides in harnessing the freedoms unlocked by Brexit,” Mr. Sunak said in a statement marking the anniversary. “Whether leading Europe’s fastest vaccine rollout, striking trade deals with over 70 countries or taking back control of our borders, we’ve forged a path as an independent nation with confidence.”A protest on Monday against a proposed bill to limit strikes outside Downing Street in London.Andy Rain/EPA, via ShutterstockHis predecessor, Boris Johnson, also cited the early authorization and rapid deployment of a coronavirus vaccine as proof of Brexit’s value — never mind that health experts said Britain would have had the authority to approve a vaccine before its neighbors, even if it had been part of the European Union.“Let’s shrug off all this negativity and gloom-mongering that I hear about Brexit,” Mr. Johnson said in a video posted on Twitter on Tuesday afternoon. “Let’s remember the opportunities that lie ahead, and the vaccine rollout proves it.”There is little evidence that Mr. Sunak and Mr. Johnson are convincing many people. Public opinion has turned sharply against Brexit: Fifty-six percent of those surveyed thought leaving the European Union was a mistake, according to a poll in November by the firm YouGov, while only 32 percent thought it was a good idea.And the sense of disillusion is nationwide. In all but three of Britain’s 632 parliamentary constituencies, more people now agree than disagree with the statement, “Britain was wrong to leave the E.U,” according to a poll released Monday by the news website, UnHerd, and the research firm, Focaldata.The three holdouts are agricultural areas around Boston and Skegness on the country’s eastern coastline, where immigration is still a resonant issue. And even in these places, public opinion about Brexit is finely balanced.At the same time, few people express a desire to open a debate over whether to rejoin the European Union. The prospects of doing that on terms that would be remotely acceptable to either side are, for the moment, far-fetched. The Labour leader, Keir Starmer, prefers to frame his party’s message as “Making Brexit Work,” having lost an election to the Tories in 2019, whose slogan was “Get Brexit Done.”The chief executive of the N.H.S., Amanda Pritchard, from left, with Prime Minister Rishi Sunak of Britain. They were visiting the University Hospital of North Tees in Stockton-on-Tees.Pool photo by Phil NobleBritain’s problems are exacerbated by the fact that the one leader who proposed radical remedies, Liz Truss, triggered such a backlash in the financial markets that she was forced out of office in 45 days. To restore the country’s reputation with investors, Mr. Sunak has scrapped her tax cuts and adopted a fiscally austere program of higher taxes and spending cuts that the I.M.F. says will curb growth.“Although we no longer have lunatics running the asylum, we have essentially a lame-duck government that doesn’t have any semblance of a plan to restore economic growth,” said Jonathan Portes, a professor of economics at King’s College London.The trouble is that the bitter squabbling over Brexit has made obvious responses politically perilous for the prime minister. Even the I.M.F.’s projection for Britain’s growth ignited a storm of commentary on social media about whether it would help the cause of “Remainers” or reopen the Brexit debate.The fund’s assessment was not completely gloomy despite its prediction of contraction in 2023. Britain, it estimated, grew faster than Germany or France last year. After inflation cools and the burden of higher taxes eases, it said, Britain should return to modest growth in 2024.Professor Portes said that there were policies Mr. Sunak could pursue, from liberalizing planning laws to overhauling immigration rules to ease the labor shortage, that would stimulate growth. “If you put all those together,” he said, “there is a reasonable, feasible strategy that could make the next 10 years better than the last.”But he added, “Any coherent strategy involves repairing the economic relationship with Europe, and that will depend on the political dynamic.” More

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    The Pandemic Flight of Wealthy New Yorkers Was a Once-in-a-Century Shock

    New tax data reveal a steep population loss in 2020, toward the start of the pandemic. The exodus was temporary, but how much of its effects could be permanent?When roughly 300,000 New York City residents left during the early part of the pandemic, officials described the exodus as a once-in-a-century shock to the city’s population.Now, new data from the Internal Revenue Service shows that the residents who moved to other states by the time they filed their 2019 taxes collectively reported $21 billion in total income, substantially more than those who departed in any prior year on record. The IRS said the data captured filings received in 2020 and as late as July 2021.Many new or returning residents have since moved in. But the total income of those who had initially left was double the average amount of those who had departed over the previous decade, a potential loss that could have long-term effects on a city that relies heavily on its wealthiest residents to support schools, law enforcement and other public services.The sheer number of people who left in such a short period raises uncertainty about New York City’s competitiveness and economic stability. The top 1 percent of earners, who make more than $804,000 a year, contributed 41 percent of the city’s personal income taxes in 2019.About one-third of the people who left moved from Manhattan, and had an average income of $214,300. No other large American county had a similar exodus of wealth.Early in the pandemic, Sam Williamson, 51, a white-collar defense lawyer living on the Upper West Side of Manhattan, first relocated to Utah, then to Long Island. After a return to the city, he and his family permanently moved to Miami last year when his law firm opened an office there.“I love New York City, but it’s been a challenging time,” Mr. Williamson said. “I didn’t feel like the city handled the pandemic very well.”The average income of city residents who moved out of state was 24 percent higher than of those who moved the year prior, according to a New York Times analysis of federal tax returns that were due in 2020. It was the biggest one-year income increase among people who left the city for other states in at least a decade.The tax data is in line with the most recent Census Bureau estimates, which showed that in the first year of the pandemic, the number of New York City residents who left was more than triple the typical annual outflow before the pandemic. International immigration, a key source of growth in New York, plummeted to one-fourth the level prepandemic. And the death rate surged, as approximately 17,000 more residents died than in a typical year.All of this led to a loss of about 337,000 people in New York City between April 2020 and June 2021, according to census estimates, a startling drop after the city’s population reached 8.8 million residents, a record high, in early 2020.New York City’s official demographers say that the pandemic was a blip in the city’s long-term population growth and that migration trends have returned to prepandemic levels, pointing to indicators like change-of-address requests and soaring rents that suggest people are flooding back.But, they said, it is too soon to conclude when the population that was lost will be completely replaced.And other indicators suggest flight from the city may be continuing. Public school enrollment this year is down 6.4 percent compared with before the pandemic, according to New York City Department of Education data, and private school enrollment decreased by 3 percent, according to state data, potentially signaling a reduction in the number of families that could hurt the city’s ability to foster a diverse work force.“All of these are underlying trends that are concerning,” said Andrew Rein, president of the Citizens Budget Commission, a nonpartisan fiscal watchdog. “We don’t know what this means permanently, but things have shifted in a way that should give anybody looking at this some serious pause.”In the years before 2019, the people who left and the people who stayed in New York City had similar average incomes, the IRS data showed. But during the pandemic, the residents who moved had average incomes that were 28 percent higher than the residents who stayed.Still, New York City collected more tax revenue in both 2020 and 2021 than in 2019, thanks in part to at least $16 billion in federal pandemic aid.The outlook for this year has become much less certain as the stock market has plummeted in recent months and certain forms of federal aid, like stimulus checks and expanded unemployment benefits, have ended.The city’s Independent Budget Office said it was not possible to calculate the tax revenue lost from the people who had moved because some of them could be working remotely for New York-based companies and paying city income tax. In the long term, the office said, their tax status could become a major policy issue as states fight for their share of taxes from remote workers.Sophia and Charlie Blackett relocated last year to Rowayton, Conn., from Brooklyn, partly because both of their jobs in tech allowed them to permanently work from home. Ms. Blackett, 27, had previously considered raising children in the city, but the confinement of the pandemic shifted her thinking.“I used to thrive on the hustle and bustle,” she said. Now, she said, “I think about waking up in my bed in an apartment, and I just feel a little bit anxious.”The issue has become a talking point in the governor’s race. Gov. Kathy Hochul, a moderate Democrat, said earlier this year that the steep population drop in New York State, driven by the city losses, was “an alarm bell that cannot be ignored.” Representative Tom Suozzi of Long Island, a centrist challenging her in this month’s primary, has blamed the exodus on crime, high taxes and an unaffordable cost of living.Gergana Ivanova, 28, a clothing designer and social media influencer, said her decision to move to Miami was less about taxes. The pandemic made the downsides of living in New York City more noticeable, she said, including the lack of space in her tiny Queens apartment and the trash piling up on the sidewalks. She felt less safe walking around when the streets were emptier.“It didn’t feel happy and positive like it used to,” she said.Gergana Ivanova at Margaret Pace Park in Miami, where she moved from Queens.Scott McIntyre for The New York TimesUrban planners and economists have long debated the extent to which policymakers should be concerned about the outflow of New Yorkers to other states. Some see it as a positive sign of mobility for people who start their careers in New York, making way for new arrivals to inject vibrancy into neighborhoods.In a new report published Thursday, the Department of City Planning said federal immigration levels and change-of-address data from the Postal Service show that New York City’s population trends likely returned to prepandemic levels by the second half of 2021. And deaths from Covid-19 are significantly lower than early in the pandemic.Since the 1950s, New York City has had a net loss of residents to other states, but the population still grew because the number of immigrants and new births surpassed the number of people who moved away.The pandemic spurred a flight to many of the same suburbs that have long attracted New Yorkers seeking more space, including Connecticut’s Fairfield County and New Jersey’s Bergen and Essex Counties. But it also triggered residents to leave for more far-flung destinations, including Hawaii, the Florida Keys and ski towns in Colorado, Utah and Wyoming.Charlie and Sophia Blackett moved to Rowayton, Conn., from Brooklyn.Anthony Nazario for The New York TimesThe exodus to Florida was especially robust, and not just for the retiree crowd. In 2020, New York City had a net loss of nearly 21,000 residents to Florida, IRS data showed, almost double the average annual net loss from before the pandemic.The pandemic accelerated the relocation of several New York-based financial firms to new offices or headquarters in Florida. Many of them have landed in Palm Beach, Fla., including the hedge fund Elliott Management, whose co-chief executive, Jonathan Pollock, is now a full-time Florida resident, according to records obtained by The New York Times.The Manhattan residents who moved to Palm Beach County had an average income of $728,351, IRS data showed.Many New Yorkers also moved because they lost their jobs in the industries hardest hit by the pandemic. In New York City, the unemployment rate is almost double the nation’s, in part because the city still has at least 61,000 fewer leisure and hospitality jobs than before the pandemic, according to the most recent jobs report.Zak Jacoby was the general manager of a bar on the Lower East Side when the pandemic hit. Throughout 2020, his employment status fluctuated with the city’s changing indoor dining rules, a stressful period that put him on and off unemployment benefits.Mr. Jacoby, 37, flew to Miami in January 2021 to see a friend — and decided to stay permanently after getting a job offer at a local restaurant group. If there was another virus surge, he said, the state would be less likely to shut down businesses, giving him more job security.“My mind-set was, Florida’s more lenient on Covid, and there’s going to be less regulation,” he said.During his first six months in office, Mayor Eric Adams visited cities like Miami and Los Angeles as part of what he said were efforts to lure businesses and residents back to New York.Jonathan Koplovitz, 53, an executive at an automotive engineering and design start-up, is among the residents who came back.As the virus began sweeping through New York, Mr. Koplovitz and his family moved from their apartment in Manhattan’s Chelsea neighborhood to Aspen, Colo., the upscale ski resort town. Expecting to stay permanently, they bought a home about a mile from the ski lifts, where his two teenage sons finished the rest of the school year with virtual classes.But on a trip back to New York, he found the city to be far more vibrant than the darkest days of the pandemic. Once in-person schooling resumed in fall 2020, the family decided to return.“There’s no place like New York,” Mr. Koplovitz said. More

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    Illegal Immigration Is Down, Changing the Face of California Farms

    Listen to This ArticleTo hear more audio stories from publications like The New York Times, download Audm for iPhone or Android.GONZALES, Calif. — It looks like a century-old picture of farming in California: a few dozen Mexican men on their knees, plucking radishes from the ground, tying them into bundles. But the crews on Sabor Farms’ radish patch, about a mile south of the Salinas River, represent the cutting edge of change, a revolution in how America pulls food from the land.For starters, the young men on their knees are working alongside technology unseen even 10 years ago. Crouched behind what looks like a tractor retrofitted with a packing plant, they place bunches of radishes on a conveyor belt within arm’s reach, which carries them through a cold wash and delivers them to be packed into crates and delivered for distribution in a refrigerated truck.The other change is more subtle, but no less revolutionary. None of the workers are in the United States illegally.Both of these transformations are driven by the same dynamic: the decline in the supply of young illegal immigrants from Mexico, the backbone of the work force picking California’s crops since the 1960s.The new demographic reality has sent farmers scrambling to bring in more highly paid foreign workers on temporary guest-worker visas, experiment with automation wherever they can and even replace crops with less labor-intensive alternatives.“Back in the day, you had people galore,” said Vanessa Quinlan, director of human resources at Sabor Farms. These days, not so much: Some 90 percent of Sabor’s harvest workers come from Mexico on temporary visas, said Jess Quinlan, the farm’s president and Ms. Quinlan’s husband. “We needed to make sure we had bodies available when the crop is ready,” he said.For all the anxiety over the latest surge in immigration, Mexicans — who constitute most of the unauthorized immigrants in the United States and most of the farmworkers in California — are not coming in the numbers they once did.There are a variety of reasons: The aging of Mexico’s population slimmed the cohort of potential migrants. Mexico’s relative stability after the financial crises of the 1980s and 1990s reduced the pressures for them to leave, while the collapse of the housing bubble in the United States slashed demand for their work north of the border. Stricter border enforcement by the United States, notably during the Trump administration, has further dented the flow.“The Mexican migration wave to the United States has now crested,” the economists Gordon Hanson and Craig McIntosh wrote.As a consequence, the total population of unauthorized immigrants in the United States peaked in 2007 and has declined slightly since then. California felt it first. From 2010 to 2018, the unauthorized immigrant population in the state declined by some 10 percent, to 2.6 million. And the dwindling flow sharply reduced the supply of young workers to till fields and harvest crops on the cheap.The state reports that from 2010 to 2020, the average number of workers on California farms declined to 150,000 from 170,000. The number of undocumented immigrant workers declined even faster. The Labor Department’s most recent National Agricultural Workers Survey reports that in 2017 and 2018, unauthorized immigrants accounted for only 36 percent of crop workers hired by California farms. That was down from 66 percent, according to the surveys performed 10 years earlier.The immigrant work force has also aged. In 2017 and 2018, the average crop worker hired locally on a California farm was 43, according to the survey, eight years older than in the surveys performed from 2007 to 2009. The share of workers under the age of 25 dropped to 7 percent from a quarter.The radish harvest at Sabor Farms. “Back in the day, you had people galore,” the company’s human resources director said. Desperate to find an alternative, farms turned to a tool they had largely shunned for years: the H-2A visa, which allows them to import workers for a few months of the year.The visa was created during the immigration reform of 1986 as a concession to farmers who complained that the legalization of millions of unauthorized immigrants would deprive them of their labor force, as newly legalized workers would seek better jobs outside agriculture.But farmers found the H-2A process too expensive. Under the rules, they had to provide H-2A workers with housing, transportation to the fields and even meals. And they had to pay them the so-called adverse effect wage rate, calculated by the Agriculture Department to ensure they didn’t undercut the wages of domestic workers.It remained cheaper and easier for farmers to hire the younger immigrants who kept on coming illegally across the border. (Employers must demand documents proving workers’ eligibility to work, but these are fairly easy to fake.)That is no longer the case. There are some 35,000 workers on H-2A visas across California, 14 times as many as in 2007. During the harvest they crowd the low-end motels dotting California’s farm towns. A 1,200-bed housing facility exclusive to H-2A workers just opened in Salinas. In King City, some 50 miles south, a former tomato processing shed was retrofitted to house them.“In the United States we have an aging and settled illegal work force,” said Philip Martin, an expert on farm labor and migration at the University of California, Davis. “The fresh blood are the H-2As.” Immigrant guest workers are unlikely to fill the labor hole on America’s farms, though. For starters, they are costlier than the largely unauthorized workers they are replacing. The adverse effect wage rate in California this year is $17.51, well above the $15 minimum wage that farmers must pay workers hired locally.So farmers are also looking elsewhere. “We are living on borrowed time,” said Dave Puglia, president and chief executive of Western Growers, the lobby group for farmers in the West. “I want half the produce harvest mechanized in 10 years. There’s no other solution.”Produce that is hardy or doesn’t need to look pretty is largely harvested mechanically already, from processed tomatoes and wine grapes to mixed salad greens and tree nuts. Sabor Farms has been using machines to harvest salad mix for decades.“Processed food is mostly automated,” said Walt Duflock, who runs Western Growers’ Center for Innovation and Technology in Salinas, a point for tech entrepreneurs to meet farmers. “Now the effort is on the fresh side.”“It scares me that they are coming with H-2As and also with robots,” said José Luis Hernández, who emigrated from Mexico as a teenager.“We used to prune the leaves on the vine with our hands, but they brought in the robots last year,” said Ancelmo Zamudio, a vineyard worker.Apples are being grown on trellises for easy harvesting. Scientists have developed genetically modified “high rise” broccoli with long stems to be harvested mechanically. Pruning and trimming of trees and vines is increasingly automated. Lasers have been brought into fields for weeding. Biodegradable “plant tape” packed with seeds and nutrients can now be germinated in nurseries and transplanted with enormous machines that just unspool the tape into the field.A few rows down from the crew harvesting radish bunches at Sabor Farms’ patch, the Quinlans are running a fancy automatic radish harvester they bought from the Netherlands. Operated by three workers, it plucks individual radishes from the ground and spews them into crates in a truck driving by its side.And yet automation has limits. Harvesting produce that can’t be bruised or butchered by a robot remains a challenge. A survey by the Western Growers Center for Innovation and Technology found that about two-thirds of growers of specialty crops like fresh fruits, vegetables and nuts have invested in automation over the last three years. Still, they expect that only about 20 percent of the lettuce, apple and broccoli harvest — and none of the strawberry harvest — will be automated by 2025.Some crops are unlikely to survive. Acreage devoted to crops like bell peppers, broccoli and fresh tomatoes is declining. And foreign suppliers are picking up much of the slack. Fresh and frozen fruit and vegetable imports almost doubled over the last five years, to $31 billion in 2021.Consider asparagus, a particularly labor-intensive crop. Only 4,000 acres of it were harvested across the state in 2020, down from 37,000 two decades earlier. The state minimum wage of $15, added to the new requirement to pay overtime after 40 hours a week, is squeezing it further after growers in the Mexican state of Sinaloa — where workers make some $330 a month — increased the asparagus acreage almost threefold over 15 years, to 47,000 acres in 2020.H-2A workers won’t help fend off the cheaper Mexican asparagus. They are even more expensive than local workers, about half of whom are immigrants from earlier waves that gained legal status; about a third are undocumented. And capital is not rushing in to automate the crop.“There are no unicorns there,” said Neill Callis, who manages the asparagus packing shed at the Turlock Fruit Company, which grows some 300 acres of asparagus in the San Joaquin Valley east of Salinas. “You can’t seduce a V.C. with the opportunity to solve a $2-per-carton problem for 50 million cartons,” he said.While Turlock has automated where it can, introducing a German machine to sort, trim and bunch spears in the packing shed, the harvest is still done by hand — hunched workers walk up the rows stabbing at the spears with an 18-inch-long knife.These days, Mr. Callis said, Turlock is hanging on to the asparagus crop mainly to ensure its labor supply. Providing jobs during the asparagus harvest from February to May helps the farm hang on to its regular workers — 240 in the field and about 180 in the shed it co-owns with another farm — for the critical summer harvest of 3,500 acres of melons.Workers harvested asparagus by hand on a farm in Firebaugh, Calif.Losing its source of cheap illegal immigrant workers will change California. Other employers heavily reliant on cheap labor — like builders, landscapers, restaurants and hotels — will have to adjust.Paradoxically, the changes raking across California’s fields seem to threaten the undocumented local work force farmers once relied on. Ancelmo Zamudio from Chilapa, in Mexico’s state of Guerrero, and José Luis Hernández from Ejutla in Oaxaca crossed into the United States when they were barely in their teens, over 15 years ago. Now they live in Stockton, working mostly on the vineyards in Lodi and Napa.They were building a life in the United States. They brought their wives with them; had children; hoped that they might be able to legalize their status somehow, perhaps through another shot at immigration reform like the one of 1986.Things to them look decidedly cloudier. “We used to prune the leaves on the vine with our hands, but they brought in the robots last year,” Mr. Zamudio complained. “They said it was because there were no people.”Mr. Hernández grumbles about H-2A workers, who earn more even if they have less experience, and don’t have to pay rent or support a family. He worries about rising rents — pushed higher by new arrivals from the Bay Area. The rule compelling farmers to pay overtime after 40 hours of work per week is costing him money, he complains, because farmers slashed overtime and cut his workweek from six days to five.He worries about the future. “It scares me that they are coming with H-2As and also with robots,” he said. “That’s going to take us down.” More

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    Refugee Crisis Will Test a European Economy Under Pressure

    Nearly everyone who crossed the Danube on the open-air ferry from Ukraine and landed in the frostbitten Romanian port city of Isaccea on a recent morning had a roller bag and a stopgap plan. One woman planned to join her husband in Istanbul. Another was headed to Munich, where her company has its headquarters. Others were meeting brothers, cousins, in-laws and friends in Paris or Sofia, Madrid or Amsterdam.And then, they hoped to go back to Ukraine.“I need to return,” said Lisa Slavachevskaya, who traveled with her 10-year-old son and 5-year-old daughter from Odessa. “My husband, my mother and my grandmother are there.” She said she planned to go home in a month.Whether such quick turnabouts are possible is one of the many uncertainties hanging over Europe’s fastest-growing refugee crisis since World War II. No matter how the catastrophe in Ukraine ends, the costs of helping the millions of Ukrainians fleeing Russian bombs will be staggering. Some early estimates put the bill for housing, transporting, feeding and processing the flood of humanity at $30 billion in the first year alone.“This is a humanitarian and medical emergency in the next weeks,” said Giovanni Peri, director of the Global Migration Center at the University of California, Davis.Tania Uzunova with her three children on a ferry headed to Isaccea in Romania.What happens over the next few months will determine if Europe will face the additional costs of a massive resettlement that has the potential to reshape the economic landscape.European economies are still recovering from the pandemic and coping with stubborn supply chain shortages and high inflation. As costly as it will be to provide short-term relief to families temporarily displaced by the war, over the long term the expense of integrating millions of people would be much greater and put immense strain on housing, education and health care systems. While a giant influx of workers, particularly skilled ones, is likely to increase a nation’s output over time, it could intensify competition in the job market. Roughly 13 million people were unemployed in the European Union in January.“It is uncertainty that now dominates the economic calculation,” Mr. Peri said.More than three million refugees fled Ukraine in less than three weeks, according to the U.N. International Organization for Migration, and millions more are likely to follow as the war rages on.Officials, migration experts and economists say it is too early to say whether most displaced Ukrainians will end up staying.That is a stark contrast to 2015, when 1.3 million migrants from the Middle East and North Africa escaped to Europe after years of war and terror, seeking asylum because they feared persecution. Return was not an option.So far, officials say, relatively few have asked for such protection. Of the 431,000 Ukrainians who have crossed into Romania, for example, only 3,800 have asked for asylum. Indeed, many winced at the “refugee” label.Of the 431,000 Ukrainians who have crossed into Romania, only 3,800 have asked for asylum, according to a government spokesman.“I don’t consider myself a refugee,” Evgeniy Serheev, a lawyer, said through a translator as he waited to cross into the northeastern Romanian town of Siret. But with his wife, three children and their bags crammed into one of hundreds of cars inching toward the border, he acknowledged that he looked the part.The urgent humanitarian and moral case is compelling on its face; the economic argument can be harder to make. Most research, though, over the long term shows that working refugees can help economies grow, expanding a nation’s productive capacity, paying taxes and generating more business for grocery stores, hair salons, and clothing and electronics stores. That was what happened in Germany after 2015 when it took in more than a million refugees, most of them from Syria.“Economically speaking it was a net positive,” said Ángel Talavera, head of European economics at Oxford Economics.But countries face significant initial costs.The European Union last week pledged 500 million euros, or $550 million, in humanitarian support, but it will have to put up more. “European governments are going to blow the budget,” said Claus Vistesen, chief eurozone economist for Pantheon Macroeconomics. This latest drain comes on top of an extraordinary amount of public spending over the last two years to battle the coronavirus pandemic.The sudden need for more housing, fuel, food, health care services and more is going to further exacerbate supply shortages. “Inflation is going to go up, up, up,” Mr. Vistesen said.Igor Korolev with his family and their cat, Murka, inside a makeshift shelter in the ballroom of a hotel in Romania.The Ukranians were welcomed by Romania with food and shelter.Cristian Movila for The New York TimesMost Ukrainians have been met with care packages and offers of free shelter in Romania.In the eurozone, inflation is running at 5.8 percent, and Mr. Vistesen said he expected it to rise to 7 percent this year given soaring energy prices. Those are up by nearly a third since last year. For the European Central Bank, he added, it will make the delicate task of balancing the risk of inflation with the risk of recession all the more difficult.For those living and working in Europe, it will mean less spending power in the short run. If wages don’t rise, they will be poorer.For now, Ukrainians, with strong kinship, cultural and religious ties in other European countries, have mostly been met with care packages and offers of free shelter, transportation and food.At the border in Siret, volunteers rushed up to Ukrainian families trudging up the road with offers of cups of hot tea and €5 cellphone SIM cards. Organizations, businesses and individuals jockeyed for a spot closest to the checkpoint to be the first to give chicken soup, kebabs, blankets, toothbrushes, stuffed animals and hats.The government in Bucharest has so far allocated $49 million to cover the costs. The prime minister, Nicolae Ciuca, said he expected the European Union to reimburse a big chunk of that.The E.U. has granted Ukrainians immediate permission to stay for up to three years, get a job and go to school — access that migrants from other parts of the globe could only dream of. And some countries, including Romania and Poland, have agreed to allow refugees to receive the same social and health services available to their own citizens.The Russia-Ukraine War and the Global EconomyCard 1 of 6Rising concerns. More

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    Democrats Renew Push for Industrial Policy Bill Aimed at China

    A major competitiveness bill passed the Senate last year with bipartisan support, only to stall. Democrats hope to revive it in the House, but first they will have to bridge big differences.WASHINGTON — Biden administration officials and Democrats in Congress are pushing to revive stalled legislation that would pour billions of dollars into scientific research and development and shore up domestic manufacturing, amid deep differences on Capitol Hill about the best way to counter China and confront persistent supply chain woes.House Democrats unveiled a 2,900-page bill on Tuesday evening that would authorize $45 billion in grants and loans to support supply chain resilience and American manufacturing, along with providing billions of dollars in new funding for scientific research. Speaker Nancy Pelosi said in a statement that she hoped lawmakers would quickly begin negotiations with the Senate, which passed its own version of the bill last June, to settle on compromise legislation that could be sent to President Biden for his signature.But the effort faces obstacles in Congress, where attempts to sink significant federal resources into scientific research and development to bolster competitiveness with China and combat a shortage of semiconductors have faltered. The Senate-passed measure fizzled last year amid ideological disputes with the House and a focus on efforts to pass Mr. Biden’s infrastructure and social policy bills. For months, the competitiveness measure was rarely even mentioned, except perhaps by Senator Chuck Schumer, Democrat of New York and the majority leader, who has personally championed it.But facing a disruptive semiconductor shortage that has broken down supply chains and helped fuel inflation, Democrats are now vigorously pressing ahead on the bill. With Mr. Biden’s domestic agenda sputtering, the party is eager for a legislative victory, and top administration officials and lawmakers have said they hope to send a compromise bill to the president’s desk in a matter of months.“We have no time to waste in improving American competitiveness, strengthening our lead in global innovation and addressing supply chain challenges, including in the semiconductor industry,” Mr. Schumer said.Both the House bill and the one that passed the Senate last year would send a lifeline to the semiconductor industry during a global chip shortage that has shut auto plants and rippled through the economy. The bills would offer chip companies $52 billion in grants and subsidies with few restrictions.The measures would also pour billions more into scientific research and development pipelines in the United States, create grants and foster agreements between companies and research universities to encourage breakthroughs in new technologies, and establish new manufacturing jobs and apprenticeships.“The proposals laid out by the House and Senate represent the sort of transformational investments in our industrial base and research and development that helped power the United States to lead the global economy in the 20th century,” Mr. Biden said in a statement. “They’ll help bring manufacturing jobs back to the United States, and they’re squarely focused on easing the sort of supply chain bottlenecks like semiconductors that have led to higher prices for the middle class.”The semiconductor shortage has disrupted the economy, broken down supply chains and helped fuel inflation.Sarahbeth Maney/The New York TimesLawmakers will still need to overcome differing views in the House and Senate over how best to take on China and, perhaps more crucially, how to fund the nation’s scientific research.“There are disagreements, legitimate disagreements,” Gina Raimondo, the commerce secretary, said in an interview. “How do we do this? How do we get it right? There doesn’t seem to be much disagreement over the core $52 billion appropriation for chips. There is disagreement around how we make investments in research and development in basic science.”One major difference is that while the Senate bill invests heavily in specific fields of cutting-edge technology, such as artificial intelligence and quantum computing, the House bill places few stipulations on the new round of funding, other than to say that it should go toward fundamental research.In a memo on the legislation, House aides wrote that their measure was “focusing on solutions first, not tech buzzwords.”Some experts argue that approach lacks urgency. Stephen Ezell, the vice president for global innovation policy at the Information Technology and Innovation Foundation, a policy group that receives funding from telecommunications and tech companies, called the House bill “not sufficient to enable the United States to win the advanced technology competition with China.” He argued that the focus on advanced technology in the Senate-passed bill would do more to increase American competitiveness.How the Supply Chain Crisis UnfoldedCard 1 of 9The pandemic sparked the problem. More