Immigration & The American Workforce

Why Immigration Reform Matters for U.S. Competitiveness 

Addressing Labor Force Decline: According to the U.S. Census Bureau, the U.S. labor force, without immigration, is projected to shrink by 2025, posing a serious threat to economic growth. This year marks “peak 65” with the greatest surge of Americans reaching retirement age in 2025. In addition, the total fertility rate is projected to fall well below the replacement rate of 2.1 children per woman (Wharton/UPenn). Under these circumstances, immigration becomes essential, accounting for 84% of the projected population increase over the next decade (U.S. Census).

Filling the Skills Gap: STEM occupations are expected to grow by 10.8% by 2032, compared to just 2.3% for other fields (BLS). International graduates from U.S. universities, especially in STEM, are crucial to filling this demand. However, only 23% of foreign-born master's degree students currently join the U.S. workforce (Nat’l Bureau of Econ. Research).

Global Competition: The U.S. economy anticipates a surge of nearly 4.7 million jobs between 2022 and 2032 (BLS), but this growth depends heavily on immigration. As global competition intensifies, countries are refining their immigration policies to meet modern workforce demands. Without similar reforms, the U.S. risks losing its edge in the race for global economic leadership.

Policy Recommendations for Immigration Reform That Powers America’s Economy

• Retain Global Talent: Advanced degree STEM graduates from U.S. universities should have a clear path to citizenship. This can include steps such as permanent residency and exemption from H-1B visa caps. Retaining top global talent is essential for driving innovation and maintaining U.S. leadership in critical industries.
  
  
• Eliminate Fixed Visa Quotas: Replace rigid visa caps with a system that evaluates candidates based on their economic contributions. A more flexible approach will align immigration policies with the dynamic needs of the U.S. job market.
  
  
• Reform Green Card Procedures: Streamline green card processes and establish temporary worker programs that reflect labor market demands. Both high-skilled and low-skilled sectors will benefit from improved access to the workers they need to stay competitive.
  
  
• Support the DACA Program: Deferred Action for Childhood Arrivals (DACA) recipients contribute significantly to the U.S. workforce and growth. Providing them with a path to citizenship will strengthen the economy and reaffirm the nation’s commitment to inclusivity.

For more information, contact Chatrane Birbal at [email protected].