Labor Shortages Deeply Linked to Immigration
The US faces alarming worker shortages
The US is facing the most alarming workforce shortage, both skilled and unskilled, in decades. In fact, this worker shortage is in the eye of the storm at the moment and is drawing the attention of American citizens, especially because:
- A high number of medium or small businesses have had to close due to the lack of workers.
- Dozens of large companies are not being able to keep up with local market demands.
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Immigration plays an essential role in worker shortages
Throughout history, the US has found a source of employment in foreign workforce and, therefore, declining immigration levels have been one of the factors influencing current labor shortages.
It is important to clarify that hundreds of American or US-based companies not only hire foreign workers to fill labor gaps, but the presence of foreigners also benefits important sectors such as science, technology, engineering and research.
In fact, the executive director of the National Foundation for American Policy recently stated, “Immigration is crucial to growing the labor force and for economic growth, particularly in the medium and long term”.
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Census Bureau had predicted a different working age population growth
A recent report reveals that, according to official Census Bureau figures, there is a shortage of 2.5 million working-age people in 2021, and this fact is related to immigration levels.
Let’s take a look at some of the reasons:
The Trump administration’s restrictive policies
Between 2017 and early 2021, the Trump administration implemented a series of restrictions on the local immigration system, hindering and limiting legal immigration routes in general.
Clearly, these rules also affected existing business immigration processes, greatly harming local companies that rely on foreign workforce.
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The global health crisis
The global Coronavirus pandemic brought international transit to an almost complete halt for a considerable period of time.
As a result, immigration levels dropped drastically in the US, affecting sectors essential to the national economy such as tourism, culinary and transportation.
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Foreign workers did not make it to the US
A recent study reveals that, between 2017 and 2020, approximately 2.1 million foreign nationals were unable to come to the US due to the Trump administration’s bureaucratic hurdles.
The vast majority of these foreigners had plans to work in the US and met the eligibility and admissibility requirements to obtain their legal permits.
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