The Economic Impact of Immigration

The US has more jobs than people to work them. It’s an interesting dilemma, considering concerns in recent years that technology, robots and artificial intelligence (AI) would replace many positions. However, labor intensive jobs that require hands-on human capital, such as food and beverage, hotel and hospitality, construction, nursing and long-term care are in demand but not all that well-paying.

 

In fact, the pandemic drove many workers out of the labor force for good. Some working moms decided it’s more cost-effective to stay home and raise children rather than work for pay that barely covers the cost of childcare. Many Baby Boomers retired earlier than planned because staying on the job wasn’t worth the health risk.

 

The Biden Administration has allowed the previous ban on highly skilled technical and seasonal workers to expire, which helped fill jobs in the hospitality industry as the economy opened back up last summer. Despite the perceived drain on national resources, economic research reveals that immigrants contribute significant growth through consumption, job creation and innovation.

 

Taking advantage of remote work technology, more companies are expected to hire “offshore” employees who live in other countries. Yet it is the lower-skill, lower-wage jobs that require more hands on deck which, given the post-pandemic landscape, is likely to come from immigrant labor.

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Knowledge@Wharton. May 4, 2021. “How Foreign Work Visas Benefit the U.S. Economy.” https://knowledge.wharton.upenn.edu/article/glennon-worker-visas/. Accessed June 11, 2020..