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

An increase in migrants in the United States could slow the rise in inflation, since this new workforce would fill the jobs that are currently vacant, according to a report from fwd.us to which EFE had early access.

The report, produced in collaboration with the George Mason Universityshows how the decrease in the levels of migration 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 central factors that has triggered inflation in the United States is the shortage of labor to fill jobs in sectors such as construction and services, where immigrants have traditionally made up a fifth of the workforce.

When there are shortages in the labor market, companies offer higher wages to attract workers, and those costs are passed on to consumers, who have to pay higher prices for services or products.

The solution, according to the report, is for the Joe Biden government and the United States Congress to work together to pass measures that increase the number of migrants who can enter the country, which would help end the shortage of workers in the market. labor.

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

Specifically, the workforce is aging due to the retirement of large numbers of American baby boomers, who were born between 1946 and 1964 during the baby boom that followed World War II, as fewer young people are entering the labor market.

In other words, according to the report, there are more people retiring in the United States than starting their working careers.

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

Likewise, the report suggests that the increase in the labor force thanks to the arrival of migrants 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 cause the US working-age population to rise 13% by the year 2040, which would keep labor force growth at the same level it has experienced in the United States. last two decades.

In addition, the report maintains that, if migration levels are increased by 50%, the country’s per capita Gross Domestic Product (GDP) would increase by 40% by 2040, which would allow each American to have an average of US$ 1,000 more available to you on an annual basis.

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 in the entire US economy, which will benefit all the inhabitants of the country.

Source: EFE