The labor market in the US is facing challenges due to a decline in the number of foreign workers, coinciding with the strict immigration policies of the Trump administration.
Dynamics of Foreign Workers
The number of foreign workers in the American labor market continues to shrink for the third consecutive month, despite the addition of new jobs. In June, 147,000 jobs were added, but foreign workers, who have played a crucial role in various industries, are disappearing.
Expert Opinions on Economic Impact
Administration officials argue that there are enough unemployed Americans ready to fill the vacancies left by vanishing foreign workers. According to Stephen Miran, chair of the Council of Economic Advisers, providing the right incentives can bring these workers back. However, many experts disagree. Economist Daniel Zhao points out that the current workforce cannot fully compensate for the missing immigrant labor.
Potential Consequences for the US Economy
A report from Deutsche Bank warned that the breakeven rate of job growth could fall to 50,000 new jobs per month, potentially leading to slower GDP growth. Analysis indicates that slowing immigration could adversely affect long-term economic growth.
The decrease in foreign workers in the US labor market could lead to significant consequences for the economy, including slower GDP growth and difficulties for sectors reliant on immigrant labor.
