Labor-Intensive Industries
Texas Tribune Opinion: Proposed federal rule could penalize legal immigrants, like my parents
When my parents took my brothers and me to visit my grandparents in Mexico last summer, it was meant to be a relaxing family reunion. But I spent the week feeling terrified. I couldn’t stop thinking about what would happen when we crossed the border and returned to Texas. In… Read More
USA Today Opinion: Thanksgiving without the sides: Lack of farm labor could make fruits, vegetables unaffordable
This Thanksgiving, as your family gathers together to eat classic holiday sides like green beans, sweet potatoes, corn and apple pie, imagine what it would be like to not have those dishes on your table. Because unless something is done about the lack of qualified agriculture workers that growers… Read More
Houston Chronicle Opinion: Why my immigrant clients are avoiding doctors
An immigrant client recently told me her newborn received Medicaid, and she asked me if this could harm her chances of getting a green card. I hated the answer I had to give her: Yes, it might. A new Trump administration regulation could penalize immigrants, like my client, from obtaining… Read More
New Analysis Shows Proposed Public Charge Rule Could Affect Up To 7 Million Immigrants
NEW YORK, N.Y.—Today, following the Trump Administration’s move to open public comment on a proposed rule change regarding the inadmissibility of immigrants on public charge grounds, New American Economy released a new analysis of the potential economic impact of this proposed rule. The Trump Administration has proposed a new… Read More
The Dallas Morning News: ‘How do we protect them?’ Dallas leaders look to help immigrants and the economy
We could mess up the so-called Texas miracle. Cutting off immigration, for instance, “would make it impossible” for the state to keep growing jobs at roughly double the national rate, Dallas Fed economist Pia Orrenius said last week. Keeping out immigrants would also take us out of the competition to attract top… Read More
Immigrant from Somalia Starts His Own Business While Working Shifts at Tyson
Mohamed Warsame began at Tyson’s Dakota City plant as a meat cutter, but, lacking knife skills, was soon assigned to pack and lift boxes. “They say, ‘We will know if you are really hardworking guy,’” he says, laughing. Now, seven years later, Warsame has cross-trained at every job on the… Read More
Immigrant and Community Leader from Mexico Gives Back to the Community that Raised Her
Balbina Valadez has been working with nonprofits since she graduated from high school, providing information on healthcare services, interpreting for immigrants, and conducting research on a range of issues. “I’m one of those people that likes to learn a lot of things,” she says. “And I like to help… Read More
Vietnamese Immigrant Wants to Help Her Community for Future Generations
Like so many Vietnamese people, Joanne Nguyen has lived a life shaped by American foreign policy. When she was born, in 1966, U.S. troops were already engaged in the ground war and her father, an English professor in Saigon, had been drafted into the South Vietnamese Army to assist U.S. Read More
First-Generation Mexican-American Serves His Community Through His Business
At age 10, Victor Puga left his native Mexico for Kentucky. Since his father had been naturalized through the Reagan Amnesty of 1986, Puga arrived as a U.S. citizen. Still, his path wasn’t easy. He became a father at a young age and dropped out of school to work for… Read More
NAE Statement on H-2B Visa Program
Following the passage of the federal spending bill which allows the Department of Homeland Security to increase the number of H-2B visas available for fiscal year (FY) 2018, New American Economy President John Feinblatt issued the following statement: “Allowing more H-2B workers gives a much-needed lifeline to America’s seafood, hospitality,… Read More
Demographic Shifts
Over the last two decades, the size of the U.S.-born population with a high school degree or less has significantly decreased. This trend is particularly evident among young workers, ages 25-44, the group typically most capable of doing physically demanding work. As this population declined, however, the number of jobs for workers with that education level held steady. Thus, real and persistent gaps in the American workforce have opened up, especially in agriculture, hospitality, and meatpacking. Foreign-born workers—a group considerably more likely than natives to lack education beyond high school—step in to fill those jobs that would otherwise remain vacant.
Sources:
1 New American Economy, “A Crucial Piece of the Puzzle: Demographic Change and Why Immigrants are Needed to Fill America’s Less-Skilled Labor Gap,” March 2014. Available online.
2 Bureau of Labor Statistics, National Industry-Occupation Employment Matrix 2014-2024, April 2016. Available online.
Educational Breakdown of Foreign-Born and Native-Born Populations, 2014
Occupations Dependent on Immigrants
The foreign-born make up 16.5 percent of the working-age population in the United States. In some particularly labor-intensive fields, their role is much greater. From 2008 to 2012, for instance, immigrants made up 72.9 percent of field and crop workers. In other large industries, such as construction, foreign-born workers frequently take on the most physically demanding roles, while U.S.-born workers frequently prefer positions that require more English-language skills or experience in management or customer service. In fact, of the top 10 occupations with the largest share of immigrant workers, nine of them are labor-intensive in nature or involve repetitive, manual tasks.
Sources:
3 Author’s analysis of 2015 American Community Survey data.
Top 10 Occupations with Highest Share of Immigrant Workers, 20153
Help Wanted
Across communities and industries, employers report trouble finding enough workers. Between 2002 and 2014, the number of field and crop workers in America declined by 146,000, causing major labor shortages on U.S. farms. A rapidly aging population also strains the healthcare workforce, a problem likely to worsen as more Baby Boomers retire. In many fields, immigrants can and do help businesses find the workers they need to compete and grow.
Sources:
4 “2016/2017 Talent Shortage Survey: The United States Results,” ManpowerGroup, n.d., Available online.
5 Home Care Pulse. “2015 Private Duty Benchmarking Study.” April 2015.
6 New American Economy, "International Harvest: A Case Study of How Foreign Workers Help American Farms Grow Crops – and the Economy," May 2013. Available online.
Jobs Americans Won’t Do: Evidence from the North Carolina Farming Industry, 20116
The Impact on American Workers
Although long a controversial issue among academics and policymakers, there is widespread evidence that the presence of more immigrants with relatively low levels of education does not substantially displace U.S.-born workers. Instead, a greater supply of less-skilled immigrants is linked to a decrease in offshoring7 and an expansion of firms on U.S. soil8—resulting in net benefits for U.S.-born workers across the board. The unique way in which immigrants frequently slot into the workforce—gravitating toward more manual or repetitive tasks—also means an influx of less-skilled immigrants has only a moderate impact, if any, on the wages of less-educated U.S.-born workers, particularly over the long term. Instead, they compete most directly with other immigrant workers.9
Sources:
7 Gianmarco I.P. Ottaviano, Giovanni Peri, and Greg C. Wright, “Immigration, Offshoring and American Jobs," National Bureau of Economic Research, October 2010. Available online.
8 William W. Olney, “IMMIGRATION AND FIRM EXPANSION,” Journal of Regional Science 53 (2013), doi:10.1111/jors.12004.
9 Heidi Shierholz, “Immigration and Wages: Methodological Advancements Confirm Modest Gains for Native Workers,” February 4, 2010. Available online.
10 Ibid.
11 Findings come from an NAE report that examines the benefit of a one standard deviation increase in birthplace diversity among workers in the bottom half of all earners in a given workplace or metropolitan area. More details can be found in the full report, available here.
12 Based on an analysis of 1998-2008 data; William W. Olney, “IMMIGRATION AND FIRM EXPANSION,” Journal of Regional Science 53 (2013), doi:10.1111/jors.12004.
Estimated Impact of Immigration on the Wages of Less-Educated Workers, 1994-200710
Wage Impact Felt by Employees in the Same Workplace or City When the Lowest Paid Workers Become More Internationally Diverse11
Number of New Establishments that are Created when the Share of Less-Educated Immigrants in a Metropolitan Area Rises by 10 Percent12
Costs of a Farmworker Shortage
In 2014, more than 56 percent of entry-level farmworkers in the United States were immigrants. Given this, changes in immigrant labor supply tend to ripple across the U.S. agriculture economy. In the last decade, a 75 percent slowdown in the arrival of young, low-skilled immigrant farmworkers meant shortages for entry-level field and crop positions. Many farmers report that the H-2A visa program, which allows the recruitment of foreign-born farmworkers, is too cumbersome and expensive—leaving them few ways to replenish their workforce. The result is many farms cutting their production of fresh fruits and vegetables.13
Sources:
13 “NCAE Survey of 2010 H-2A Employers - Final Summary," National Council of Agricultural Employers, December 2011. Available online.
Decline of Field and Crop Workers in Key States, 2002-2014
Inadequate Visa Programs
Although immigrants already help fill gaps in the U.S. labor force, our current immigration system does not allow employers to recruit enough of the specific workers they need. Employers can sponsor low-skilled workers for an agricultural visa (the H-2A visa), or for a visa designed to meet seasonal demand at venues like hotels, amusement parks, and ski resorts (the H-2B visa). Both programs, however, are cumbersome and outdated. And many of the fields that struggle the most to find workers, including healthcare and construction, lack a dedicated visa altogether. Improvements must be made so more industries—and specific geographies—can recruit temporary foreign-born workers when no Americans are available for the job.
Sources:
14 “NCAE Survey of 2010 H-2A Employers - Final Summary, "National Council of Agricultural Employers, December 2011. Available online.
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