Paul Krugman, Nobel laureate in economics, argues that immigration is not stealing jobs from Americans but is, in fact, beneficial for the country’s economy. In an opinion piece for The New York Times, the economist analyzes economic criticisms of immigration, citing former President Trump, who claims that immigrants have been taking jobs that belong to native-born Americans.
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However, Krugman points out that the data contradict this claim. According to the Federal Reserve, the unemployment rate among U.S.-born workers has remained around a historic low of 4.3%. Although the labor force participation rate has declined, U.S.-born workers of working age have seen an increase in their participation rate.
Krugman suggests that the stagnation of native employment is mainly due to the retirement of baby boomers. “The near-total stagnation of employment among natives is not a demand problem, where people aren’t working due to a lack of opportunities. It’s more of a supply issue, as people are exiting the labor force. Thanks to the arrival of working-age immigrants, we’ve seen a remarkable increase in employment. Without immigrants, we wouldn’t have enough jobs,” he writes.
Krugman also suggests that immigration may be helping the Federal Reserve control inflation. “Immigrants not only increase supply but also fuel demand. After the pandemic, the surge in aid spending boosted demand; this boom was easier to manage without causing sustained inflation thanks to the rapid growth in employment facilitated by immigration,” he explains.
Other economists and Wall Street analysts agree that immigration could be a significant boost to the economy. A recent projection by the Congressional Budget Office indicates that an increase in immigration could add 7 trillion dollars to the U.S. economy over the next decade.
“So no, immigrants aren’t stealing our jobs. While every economic change can hurt some, and it’s true that in certain places housing prices have risen or there has been more competition in the labor market, alarmist narratives do not align with reality,” Krugman concludes.
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