The national labor shortage and rising inflation have been caused by decreased immigration.
Immigration rates have fallen in recent years as a result of restrictions enacted by the Trump administration and the impact of the coronaviruses. The US would have 2 million more immigrants than it does now if immigration rates stayed the same, according to the AP.
Meatpacking has a shortage of workers due to the decrease in immigration.
Giovanni Peri, an economist at the University of California at Davis who calculated the shortfall, told the AP that they would adjust to the labor market shortages through an increase in wages and prices.
In January, Suzanne Clark, CEO of the US Chamber of Commerce, said opening the door for more immigration would help ease worker shortages.
That is a place the government could be helpful and we think it would be anti-inflationary.
Insider reported last month that inflation hit a 41-year high in March. According to the AP, immigration only played a part in that. Russia's invasion of Ukraine is one of the factors.
Millions of Americans have quit their jobs in the last year due to poor working conditions and insufficient pay, as inflation and the labor crisis go hand in hand. The US workforce has been hit by declining birth rates and an aging population.
At some point, we either decide to become older and smaller or change our immigration policy, according to an economist and former Bush administration official.
Businesses in parts of the country are raising prices for services because their own costs have gone up without immigrant workers. In Dallas, Texas, Joshua Correa told the AP that he raised the prices of homes his company builds from $500,000 to $650,000.
Mike Helle told the AP that decreasing immigration has impacted his business. He said US-born workers won't work those jobs if the pay is higher.
If we feel it at the end of the day as builders and developers, the consumer pays the price.
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