Why The U.S. Won’t Put Immigrants To Work

Summary

The US economy faces a significant shortfall of workers, with 9-12 million job openings unfilled, costing the country over $1 trillion in lost production annually. Despite this, restrictive immigration policies limit the influx of much-needed skilled and unskilled labor. The aging population and declining birth rate exacerbate the labor shortage, while the current immigration system, focused on family reunification and not tailored to economic needs, fails to address the issue. Experts suggest a more inclusive policy that prioritizes labor market demands could alleviate the strain and contribute to economic growth.

Takeaways

• 📉 The US economy is losing around $1 trillion annually due to unfilled job openings, which range between 9 to 12 million.
• 🌐 Despite high demand for labor, US immigration policies restrict the hiring of unskilled migrants, aiming to protect domestic workers.
• 🌆 The US remains a top destination for global migrants seeking better opportunities, with Ipsos surveys highlighting its enduring appeal.
• 🚫 There is a public divide, with 51% of Americans surveyed by the Cato Institute expressing concerns that immigration could reduce job availability.
• 📈 The US is experiencing a historic immigration crisis with 2.7 million border encounters in fiscal year 2022, highlighting the need for policy reform.
• 👵 An aging US population and declining birth rates are contributing to labor shortages and potential economic stagnation.
• 🌱 The US could benefit economically by allowing more young, skilled immigrants to enter legally, filling labor and skill gaps.
• 🏢 Major tech companies like Google and Apple rely on visa systems to hire foreign workers for specialized roles, indicating a demand for high-skilled labor.
• 🏛 The US green card system is restrictive, with lengthy processes and limited opportunities for employer-sponsored immigration, especially for less skilled positions.
• 🌐 Canada's immigration policy, which is more open and focused on economic growth, serves as a model for how the US could potentially reform its system.
• 🌱 The US needs to consider a more inclusive immigration policy to address labor shortages, support economic growth, and adapt to global challenges like climate change.

Q & A

What is the current range of job openings in the US?

The number of job openings in the US has been between 9 million to 12 million.

How does the unfilled job openings impact the US economy?

Unfilled job openings are estimated to be causing a loss of about $1 trillion in production every year.

What is the perception of the US as a destination for emigration?

The US is still considered the 'shining city on the hill' and the most popular place for people to emigrate to, according to Ipsos surveys.

What is the stance of American immigration policies on hiring unskilled migrants?

American immigration policies bar many employers from hiring unskilled migrants, claiming it protects American workers.

How does the US population's aging affect the workforce?

Aging out of the workforce leads to a decline in innovation and economic growth, with the ratio of older individuals to working-age individuals increasing significantly over the past decade.

What is the role of immigration in addressing the US labor shortage?

Immigration can help address the labor shortage and economic needs of the US by bringing in young people who are willing to work and contribute.

What types of visas are available for skilled workers in the US?

The US offers visas for entrepreneurs, professionals, and those with extraordinary abilities, such as H-1B, L-1, O-1, and EB-1A visas.

How does the current immigration system affect the US economy?

The current immigration system is restrictive and does not effectively address the economic needs of the US, leading to a missed opportunity for economic growth.

What is the role of foreign-born workers in the US workforce?

Foreign-born workers accounted for 18.1% of the US workforce in 2022, and they are significant contributors to job creation, particularly as entrepreneurs.

What are some proposed solutions to the US immigration crisis?

Proposed solutions include securing the border, reforming the legal immigration system, and prioritizing labor and economic needs over family reunification.

How does the US immigration policy compare to Canada's?

Canada's immigration policy is more open and economically driven, allowing for a legal pathway for talented individuals to contribute to the economy, unlike the US's more restrictive approach.

Outlines

00:00

📉 US Labor Shortage and Immigration Policies

The US is experiencing a significant labor shortage with between 9 to 12 million job openings, leading to an estimated $1 trillion loss in annual production. Despite this, there's a desire among millions to immigrate to the US for work, viewing it as a land of opportunity. However, current immigration policies restrict the hiring of unskilled migrants to protect domestic workers. There's a public divide, with 51% of Americans surveyed by the Cato Institute expressing concerns that immigration could reduce job availability. The immigration crisis is exacerbated by a record number of border encounters and a legal immigration system facing unprecedented backlogs. The aging US population and declining birth rate further strain the workforce, with a shrinking workforce leading to decreased innovation and economic growth. There's a suggestion that a more focused immigration policy could help address these issues by filling skill gaps and contributing to the economy.

05:02

🛂 The Impact of Immigration on the US Workforce

The US immigration system includes various visa types aimed at attracting skilled workers to fill specific roles and stimulate economic growth. Entrepreneurs and professionals with unique expertise can obtain visas, with tech giants like Google and Apple utilizing these systems. However, the H-1B visa program, intended for high-skilled labor, is criticized for suppressing wage growth by undercutting prevailing wages, thus preventing the market from attracting American workers to those fields. The green card system is restrictive, with most immigrants entering through family ties rather than employment sponsorship. Legal pathways for immigrants are limited, with family-based immigration, student visas, and the diversity visa lottery being the main avenues. Despite some instances of discrimination, foreign-born workers often create more jobs for Americans and are overrepresented among entrepreneurs. The US immigration policy is seen as too restrictive for the current economic needs, with outdated laws and a system that doesn't align with the labor market's demands.

10:02

🌐 Global Perspectives on US Immigration Policy

The US spends considerable resources on housing and caring for migrants, yet its immigration policies are not effectively harnessing this potential workforce. With climate change预计 to displace over 1 billion people by 2050, the US could benefit economically from a more open immigration policy, as seen in Canada's approach. Canada's system is more accessible for talented individuals, focusing on economic growth and self-interest. There's a call for the US to recognize the economic benefits of immigration and to simplify the process for those wishing to work and contribute. Suggestions include securing the border, reforming the legal immigration system to prioritize labor and economic needs, and adopting more inclusive policies. The Occupational Opportunity Network aims to provide data to decision-makers on how migrants can help the US economy grow, advocating for a comprehensive immigration reform that considers the actual labor market needs and the potential of migrants to fill skill gaps and contribute to the economy.

Keywords

💡Job Openings

Job openings refer to positions in an organization that are currently vacant and for which employers are seeking to hire new employees. In the context of the video, job openings in the US are significant, with a range of 9 million to 12 million unfilled roles, indicating a substantial labor shortage that is negatively impacting the economy.

💡Economy

The economy encompasses all activities related to production, consumption, and trade of goods and services in an area. The video discusses how unfilled job openings are dragging down the economy by causing a loss of potential production, estimated at around $1 trillion annually.

💡Immigration Policies

Immigration policies are the laws and regulations governing the process of immigration into a country. The script highlights how current US immigration policies restrict the hiring of unskilled migrants, which is a contentious issue as it is seen by some as protecting American workers while others argue it limits the potential workforce.

💡Skill Gaps

Skill gaps refer to the difference between the skills required for a job and the skills that a worker possesses. The video mentions that the US has skill gaps in its workforce, suggesting that an immigration policy focused on filling these gaps could be beneficial for economic growth.

💡Aging Population

An aging population refers to a demographic trend where the median age of a population increases over time. The script points out the effects of an aging population in the US, such as a decline in innovation and a reduction in the workforce, which contributes to the labor shortage.

💡Birth Rate

The birth rate is the number of live births per 1,000 people in a given year. The video script indicates that the US birth rate is declining, which means there will be fewer young Americans to fill open roles, exacerbating the labor shortage.

💡Work Visas

Work visas are permits issued by a country that allow a foreigner to work in that country legally for a specified period. The script mentions that almost 1 million temporary foreign work visas were granted in 2022, reflecting the demand for foreign workers to fill job openings.

💡E-Verify

E-Verify is an electronic system used by employers to verify the eligibility of employees to work in the United States. The video discusses E-Verify in the context of enforcing immigration laws and preventing the hiring of unauthorized workers.

💡Green Card

A green card is an identification card that grants its holder the status of a lawful permanent resident in the United States. The video script touches on the restrictive nature of the green card system, which makes it difficult for many to immigrate legally, even when there is a need for workers.

💡Entrepreneurs

Entrepreneurs are individuals who create new businesses, bearing most of the risks and enjoying most of the rewards. The video script notes that immigrants represent 25% of entrepreneurs in the US, emphasizing their role in job creation and economic growth.

💡Immigration Reform

Immigration reform refers to changes made to a country's immigration laws to address issues such as legal immigration, border control, and the status of undocumented immigrants. The video suggests that comprehensive immigration reform is needed to better align the US immigration system with the country's economic needs.

Highlights

The US has 9 to 12 million job openings, leading to an annual loss of about $1 trillion in unfilled positions.

Despite high demand for jobs, US immigration policies restrict hiring of unskilled migrants.

The US remains the top choice for global emigration, according to Ipsos surveys.

The US birth rate is declining, exacerbating the labor shortage.

Legal immigration could help mitigate the effects of population aging and fertility decline.

In 2022, nearly 1 million temporary foreign work visas were granted in the US.

The US has not updated its immigration laws in over three decades, affecting its economic needs.

Immigrants contribute significantly to the US economy, with 25% being entrepreneurs.

The US spends considerable resources on housing and caring for migrants.

Climate change may displace over 1 billion people by 2050, presenting a potential opportunity for the US economy.

Canada's immigration policy is economically driven and has helped its economy grow.

The US should consider more inclusive immigration policies to meet its labor and economic needs.

The Occupational Opportunity Network aims to provide data to inform comprehensive immigration reform.

Immigrants are seen as a potential blessing for the US, bringing work and skills to contribute to the economy.

Transcripts

The number of job openings in the US has been hovering

between 9 million to 12 million open roles, and

these empty desks are dragging down the economy.

You're talking about passing up something like $1

trillion in production every year that these jobs

go unfilled.

At the same time, there are millions of people who want

to come to the US to work.

It still is the shining city on the hill for most people

in the world if they're going to emigrate.

And we do surveys at Ipsos where I see this, the most

popular place for people to emigrate in the world is

still the United States.

It's clear that the US has a very important pull factor

in terms of migration. It's the largest economy in the

world.

But American immigration policies bar many employers

from hiring unskilled migrants, claiming it

protects American workers.

Joe Biden's 5 million illegal aliens are on the

verge of replacing you, replacing your jobs.

The public is split evenly on this.

51% of Americans surveyed by the Cato Institute worry

immigration could reduce the number of jobs

available. Meanwhile, a crisis at the border

continues.

Illegal immigrants. In fiscal 22, there were 2.7

million encounters at the border.

It's a sort of bum rush where the people who get to

make the choice about who fills this supposed labor

vacuum are the people who show up at the border, as

opposed to the United States Congress and the

people who voted for it.

The immigration crisis is of historic proportions right

now, both in terms of the number of people violating

the law and the fact that our legal immigration system

is facing backlogs like it's never seen before in

the history of the United States.

How US Immigration policies Hurt the economy.

The US is running out of workers.

It's been this way for a while, and with only 5.8

million unemployed workers and almost 10 million open

roles, the math just will not add up.

Meanwhile, a large majority of the US population is

aging out of the workforce.

The effect of a shrinking aging population is a

decline in innovation, combined with the fact that

you're just going to run out of the things that drove

economic growth.

You just look at the facts of the US population.

In the 1970s, there were about 15 people of older age

or after retirement for each working age individual

in the US. Nowadays that number is 25 plus.

It has been rising significantly over the past

ten years.

The US birth rate is also declining, so there will be

fewer young Americans to fill the open roles.

If we were in a world where we actually wanted to

reallocate resources in the most effective way globally,

you know, it's a no brainer to say, well, the US now

needs a lot of young people and we have them.

They want to come.

And it's just really a matter of understanding that

it's beneficial for the country.

But if we decide to import a larger number of young

people to to do labor to become new Americans, we

have to do it in a manner that's that's legal and

that's fair. If we could recruit people who spoke

English and had skills and were of working age and

healthy, that would be better if we're making a

pure economic argument, then allowing in the

elderly, infirm parents of existing American citizens

or just whoever shows up at the border.

It's a huge opportunity for the United States to blunt

some of the effect of fertility decline and

population aging by having an immigration policy that

may be a bit more focused, not necessarily on just

accepting anybody for compassionate reasons, but

for bringing in people to to fill in those skill gaps.

There are people who want to come to the US to work.

Almost 1 million temporary foreign work visas were

granted in 2022.

The reason why the United States is seeing more

migration in the last couple of years under this

administration in particular is because we

have more job openings now than we've had at any point

in our entire history.

This enormous increase in the amount of demand for

workers is driving people to move and seek opportunity

here.

I don't think I agree with that estimate of there

being, whatever, 9 to 12 million unfilled jobs unless

we balance it with the number of people who are

sitting on the bench, in other words, who aren't

looking for work anymore.

I don't think there's ever been a time when there

weren't jobs here if you were willing to undercut

local wages.

But as people come to the US, finding legal work is

difficult. Now immigration policy conversations tend to

center around the ability to work.

In 1986, Congress banned people working without

authorization in the United States.

This bill, the Immigration Reform and Control Act of

1986 that I'll sign in a few minutes is the most

comprehensive reform of our immigration laws since 1952.

They made it impossible to hire someone who was in the

United States illegally or without employment

authorization.

It traded amnesty for about 3 million people who were

here illegally for enforcement in the future.

Now they have a system called E-Verify.

Any employer, if they're going to hire somebody,

just. Puts in their name and data into a into a

database. It pings off all the, the federal holdings

just to make sure that that person is authorized to

work. And if the answer is no, then that person can't

get a job. That was the deal.

It never happened.

The amnesty happened, but the work authorization part

never went through.

It set up this magnet of people being able to come in

and work illegally and get paid under the table.

And so it never achieved the purpose that it was

supposed to achieve.

Immigrants are granted work authorization papers, which

are intended to correlate with the employees needed to

fill open roles and help the economy grow.

There are visas for entrepreneurs.

There are visas for people who want to work in

professional positions.

When those employers can show that there isn't

somebody in the United States with that same

expertise, for example.

So this is not about taking American jobs or something

like that, right?

Major US tech companies like Google, Apple and Meta use

this visa system to fill roles.

These jobs require proof of extraordinary ability, in

the case of 0-1 and EB-1A visas.

Visas like the HB-1 require at least a bachelor's degree

or equivalent, and L-1 visas require the employee

to have preexisting relationships with the

company that works in the US and abroad.

Take one example. I know we have this H-1B visa, right?

The whole idea of that was that it's filling a

temporary demand for high skilled labor with trained

foreigners that Americans can't do well.

What's supposed to happen if you believe in markets as

I do, and if a market is working properly, an

internal market, then you're going to attract

people to study those things in college and to

take those jobs. But the H-1B, because it always

somewhat undercuts the prevailing wage, it's never

allowed the market to exercise that function where

the wages go up and then people are tempted to go

into those fields and fill those jobs.

The green card system is extremely restrictive in the

United States.

The vast majority of people come through family ties,

and there are very few opportunities for people who

are sponsored by employers.

The regulatory barriers to sponsoring a foreign worker

are monumental.

You're talking about a process that typically can

take between 2 and 3 years for a worker to get through.

It is effectively off the table to sponsor a worker

for a lesser skilled position.

Maybe you're looking to hire someone who's going to

be just an electrician, doesn't require a college

degree, but you need some technical skills.

That is not something that our immigration system is

designed for.

Aside from a work visa, the main legal ways immigrants

can come to the US are via family based immigration

student visas through the diversity visa lottery.

Like Professor Bahar, By seeking asylum or by

claiming refugee status.

It's very important to note that these pathways have

been really narrowed and shut down over over the

years.

In 2022, foreign born workers accounted for 18.1%

of the US workforce, up from 17.4% in 2021.

While there have been some cases of companies

deliberately discriminating against US workers in favor

of foreign born employees, the majority of foreign born

workers actually create more jobs for Americans.

Immigrants represent 25% of entrepreneurs in the

country. They create firms at a higher rate.

They create firms that grow much faster in terms of

jobs. And if you look, for instance, at Fortune 500

companies, more than 40% of these companies have been

created by immigrants or children of immigrants.

The reality is that immigrants who come in do

create jobs for Americans, better paying jobs with

better benefits.

In the meantime, many desks continue to sit idle.

U.s immigration policy is far too restrictive for the

economic needs of the United States.

We haven't had an update in our illegal immigration laws

in more than three decades.

We're stuck with the same quotas that we had before

the invention of the Internet.

I mean, this is the most important aspect of our

immigration laws, the fact that far more people would

like to live in the United States legally than are able

to do so on an annual basis.

The US spends a lot of money, housing and caring

for migrants.

We've seen a lot of efforts from the authorities to keep

migrants from coming at a time where, you know, this

country needs a lot of workers and also when they

come to try to keep them from working and to try to

keep them perhaps in places without work permits in a

way that they're actually their stays being subsidized

by the American taxpayer, instead of actually telling

them, hey, go and work, find your talent, reach your

full potential.

If you're coming for economic opportunity, if you

want to work and contribute to the United States, you're

going to be an asset.

And with the increasing perils of climate change,

more people are going to be forced to move.

Unfortunately, the United States doesn't recognize any

any pathway to live in the United States based on

climate change or global warming.

More than 1 billion people may be displaced due to

climate change by 2050.

This could present an opportunity for the US

economy, much like Canadian immigration policies have

helped its economy grow.

Canada is a country that has a system which is very

different. It's a system where people with talent can

easily find or relatively easily find a legal pathway

to reach their full potential there.

Well, I'm a Canadian, and I should say for your your

audience. Our immigration policy here in this country

is has elements of compassion to it, but it's

really very self-interested and economically driven with

an aging population and a declining birth rate, the

only way that you're going to be able to continue to

grow your economy is you've got if you've got people to

be consumers, people to be workers and people to be tax

payers.

One could argue that Canada has benefited a lot from the

broken migration system in the US.

I don't believe that in Washington DC there is a

consensus about what the purpose of our immigration

system should be.

And so as soon as we realize migration is never going to

stop, then I think we can start to make some

intelligent choices about what we do with it.

Then the first thing I would do is I would secure the

border. I would complete a physical barrier that made

it impossible for people to just swim or walk into the

country without having to meet some border official

and present their their case and their demands.

I would reform the legal system to make it easier for

people to apply.

Would not necessarily mean that they would get the

benefit. And I would make sure that the needs of labor

and the economy were placed above family reunification,

not eliminate the latter category, but change the

emphasis.

Other groups suggest adopting more inclusive

policies overall.

I argue that the onus should be on the US government to

show why people should not be able to cross rather than

on people to show why they should be able to.

There are many reasons that there are many valid reasons

why someone might want to come and live in the United

States. And it should be a simple process, right, to

say I would like to work.

Danny Bahar and his colleagues are developing

what they're calling the Occupational Opportunity

Network to help keep decision makers informed

about how migrants can help the US economy grow.

And what we're trying to do is to really provide to the

decision makers the numbers that need to be on the table

when we're thinking about doing a comprehensive reform

of the immigration system.

By looking at every occupation in every locality

in the US and projections and historical data, we're

able to actually come up with numbers that are much

higher than the current caps in the in the US

system. And we hope that these numbers are going to

be the basis for a comprehensive immigration

reform.

It all starts with people because that's all an

economy is.

The reality is we need more workers to make up for the

declining birth rates in this country.

We need not only in the short term to fill these

labor shortages, but also in the long term to make

sure that we have the workers that we need.

So I think the message of trying to see these people

as a terrible burden instead of a blessing

because they could bring work and skills that they

could act, they're willing to work and they're willing

to contribute if they are just given the opportunity

instead of being bounded to a locality or to, you know,

to a place without subsidized by the taxpayers,

that's something that it goes beyond me.

I think it's un-American.

And I think this country can do much better than

that.