Thursday, June 8, 2023

An increase in migrants in the US could curb inflation, according to a report

An increase in migrants in USA could curb the increase in inflation, since this new workforce would fill the jobs that are currently vacant, according to a report by to which EFE had early access.

He reportprepared in collaboration with George Mason University, shows how the decline in migration levels to the United States due to the policies of Donald Trump (2017-2021) and due to the covid-19 pandemic have contributed to the increase in inflation.

One of the factors that has triggered inflation in the US is the shortage of labor to fill jobs in sectors such as the construction and the service sector, where immigrants have traditionally made up a fifth of the workforce.

When there is a shortage in the working marketcompanies offer higher wages to attract workers and those costs are passed on to consumers, who have to pay prices higher for services or products.

The solutionaccording to the report, is that the Government of Joe Biden and the US Congress work together to approve measures that increase the number of migrants that can enter the country, which would help to end the shortage of workers in the labor market.

The United States cannot solve the problem on its own. problem of labor shortages due to their own demographic evolution, the study highlights.

Specifically, the workforce is aging due to the retirement of a large number of Americans of the generation of the baby boomwho were born between 1946 and 1964 during the baby boom that followed World War II, as fewer young people are entering the job market.

That is, according to the report, there are more people retiring in the United States than starting their career.

Therefore, the report argues that, without an increase in migrationthe working-age population in the United States will stagnate and not increase in the coming years.

Furthermore, the report suggests that the increase in labor force Thanks to the arrival of migrants, it would not only help curb inflation, but would also boost economic growth in the United States in the long term.

Specifically, according to the report, increasing migration levels by 50% would make the population working-age American raise a 13% by 2040, which would keep labor force growth at the same level it has experienced over the past two decades.

In addition, the report argues that if migration levels are increased by 50%, the gross domestic producer (GDP) per capita of the country would increase by 40% by 2040, which would allow each American to have an average of $1,000 more available to them annually.

This is due, according to the report, to the fact that the increase in the growth in the labor force due to the arrival of migrants will produce improvements throughout the US economy, which will benefit all the inhabitants of the country.


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