Washington, May 1 (EFE).- The increase in immigrants to the United States could stop the rise in inflation, as this new workforce will fill jobs that are currently vacant, according to a report by FWD.us, which EFE previously reported. access.
The report, prepared in collaboration with George Mason University, shows how the decrease in migration levels in the United States due to the policies of Donald Trump (2017-2021) and the increase in inflation due to the Covid-19 pandemic have contributed. .
One of the central factors driving inflation in the United States is a labor shortage to fill jobs in sectors such as construction and services, where immigrants have traditionally made up a fifth of the workforce.
When there is a shortage in the labor market, companies offer higher wages to attract workers, and these costs are passed on to consumers, who have to pay higher prices for services or products.
The solution, according to the report, is for Joe Biden’s administration and the US Congress to work together to pass measures that increase the number of migrants who can enter the country, helping to end the shortage of workers in the labor market.
The United States cannot solve its labor shortage problem due to its own demographic evolution, the study emphasized.
Specifically, the labor force is aging due to the retirement of large numbers of American baby boomers, born between 1946 and 1964 during the post-World War II baby boom, as fewer young people enter the labor market.
In other words, according to the report, more people in the United States are retiring than are starting their working careers.
Therefore, the report argues that without increased migration, the working-age population in the United States will stagnate and not grow in the coming years.
Similarly, the report suggests that labor force growth due to migrant arrivals will not only help curb inflation, but also boost economic growth in the United States in the long run.
Specifically, according to the report, a 50% increase in migration levels would increase the US working-age population by 13% by 2040, keeping labor force growth at the same level as in the United States. the last two. decades.
In addition, the report states that if the level of migration increases by 50%, the country’s gross domestic product (GDP) per capita will increase by 40% by 2040, allowing each American to have an average of $1,000 more available. you every year.
This is because, according to the report, the increase in labor force growth due to the arrival of migrants will lead to an improvement in the entire US economy, which will benefit all residents of the country.
Source: El Diario