Economist Paul Krugman, Nobel Prize winner, argues that immigration does not deprive Americans of jobs, but is positive for the national economy. In his opinion article published in The New York Times, Krugman examines the arguments against immigration, citing former President Trump, who has claimed that immigrants have taken jobs from native-born Americans in recent years.
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Nevertheless, Krugman argues that statistics do not support this claim, as, according to the Federal Reserve, the unemployment rate for American workers has remained at a historic low of 4.3%. Despite a decline in the labor force participation rate, native workers of working age have seen an increase in this rate.
According to Krugman, the stagnation in native employment is primarily due to the wave of retirements among baby boomers. “The near-stagnation of native employment is not due to a lack of demand, where people can’t find jobs. It’s more of a supply issue, as many have reached retirement age. We have achieved a considerable increase in overall employment thanks to the arrival of working-age immigrants in the U.S. Without them, we wouldn’t have enough available jobs,” he writes.
Krugman also points out that immigration has positively affected wages, as immigrants are not competing for the same jobs as Americans. Since 2020, wages for all workers have increased by 25%, coinciding with the rise in employment of foreign-born workers in the country.
Krugman further notes that immigration may be helping the Federal Reserve keep inflation under control. “Immigrants not only expand the labor supply but also stimulate demand. After the pandemic, the surge in aid spending significantly boosted demand; this situation was more manageable without causing persistent inflation thanks to the rapid rise in employment driven by immigration,” he explains.
“In short, immigrants are not stealing jobs. While every economic change impacts certain sectors, and it’s true that in some areas housing prices have risen or that native-born Americans and legal immigrants face increased job competition, alarmist stories don’t match reality,” Krugman concludes.
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