The US labor market is going through a unique problem... There are a lot of jobs opening but not enough workers as the Americans enter into 2023.
At the time of writing this, around 3 million jobs are still open in the USA. According to a leading economist, a major reason for this labor market shortage is the slowdown in immigration.
To understand this, the economist Adam Ozimek said that the lack of immigration means that there are fewer people coming to the USA. This leads to a labor market shortage as there are many job openings that can be filled by immigrants. As things stand right now, it seems that the USA could benefit from adopting a more relaxed immigration policy.
Recent data from the DHS reveals that immigration in the USA is increasing by 5% per year. Around 740,000+ people were granted the LPR status but when compared with numbers from 2011 to 2011, that's a decrease of 28%.
Recently, even Jerome Powell openly talked about the labor shortage in the United States of America. Once again, even Powell suggested that a lack of immigration is a major cause of this problem.
He said that a surge in deaths was noticed during the pandemic and this was followed by a drop in immigration. As a result, the job markets lost around 1.5 million people.
It's been years since lawyers and economists are citing the immigrant population of the USA as the backbone of the job market. For the most part, these immigrants tend to have a higher participation rate in the labor market.
But let's not forget that immigrants are not important only for filling the gab in the labor market. In reality, more people end up creating more demand which is ultimately good for the economy.
It directly means that these immigrants will spend money on cars, furniture, houses, and all the other stuff.