Treasury Secretary Scott Bessent mentioned that the U.S. is managing job creation fairly well, attributing some of the recent slowdown in job growth to the deportation of 2 million undocumented immigrants.
He will appear on Wednesday morning at CNBC’s American Investment Forum. During a conversation with host Sarah Eisen in Washington, Bessent was asked to clarify the reasons for the recent slowdown in job growth.
“People seem to be questioning whether this is a supply issue due to less immigration, or a demand issue with companies hiring less,” he noted.
Bessent responded, “There are multiple factors at play. With a focus on border security and possibly deportations, I believe that about 2 million individuals have exited the labor force. Overall, I think we’re in a decent place regarding jobs for American citizens.”
The Department of Homeland Security (DHS) reported last month that since President Donald Trump’s inauguration, around 2 million undocumented immigrants have either been deported or have chosen to leave.
Specifically, DHS estimates that 1.6 million have opted for voluntary deportation, while ICE has removed over 400,000, expect to reach nearly 600,000 by year-end.
The agency also stated that there were no undocumented immigrants released into the U.S. from the southern border for the fourth month in a row, contrasting with the hundreds of thousands released monthly during the Biden administration.
Bessent attributed the decline in job growth partly to reduced illegal immigration and cuts to a “bloated” federal workforce.
“We are beginning to see a realignment within the federal government. There will, I believe, be a transition phase,” he stated. “As government positions decrease, we might see a boom in private sector jobs.”
Eisen asked, “Is that what we’re witnessing?”
Bessent expressed the need for a government shutdown, saying, “I think we’re on the edge here. The government needs to step aside and allow for conditions that support this growth.”
He began the forum by placing the blame for the ongoing government shutdown, now in its 15th day, on Democrats.
Eisen countered, “While you blame the Democrats, often enough, the responsibility lies with those currently in power.”
Bessent replied, “Look, [House Speaker] Mike Johnson made an unproblematic proposal. There are three Democratic senators engaging here. [Senate Majority Leader John] Tune is voting daily and willing to negotiate. We want to reopen the government. Let’s negotiate.”
When asked if the shutdown was adversely affecting the economy, Bessent commented, “We’ve started to see figures that indicate a negative impact on the economy, potentially costing around $15 billion a day.”
