New immigration reality: Economy needs workers

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World Economy News

Illegal Immigration,Inflation,Economy

Demographic realities are colliding with a hot-button political issue.

are expected to slow U.S. population growth in the years ahead, with a steady flow of immigrants needed to offset the economic consequences.: The result is a fresh collision of two contentious issues — immigration policy and economic growth — that will continue to shape political debates for decades.: The current backdrop offers a preview of what's to come. Efforts to stem the border crisis are happening alongside conditions unique to the pandemic-era economy.

Rampant worker shortages mean companies will not have adequate staff to meet demand for a range of goods and services. That will drive up labor costs. Beginning in 2040, immigrants will account for all of population growth "in part because fertility rates remain below the rate that would be required for a generation to replace itself in the absence of immigration," the nonpartisan Congressional Budget Office

Notably, net immigration will particularly bolster the size and growth of those aged 25-54, the key working-age demographic, the agency says.: The influx of immigrants means state and local resources have been stretched to accommodate spiking population sizes, which has angered local residents.

 

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