Labor Secretary Discusses August Employment Report and Workforce Dynamics
Labor Secretary Lori Chavez Deremar spoke about the August jobs report, highlighting the decrease in the number of migrant workers, which suggests a rise in employment among US-born individuals. Data from the Bureau of Labor Statistics (BLS) indicated that foreign-born workers—without distinguishing between legal and illegal immigrants—saw a decrease of 822,000 compared to last year. In contrast, employment among US-born workers increased by 2.76 million during the same timeframe.
The unemployment rates for both groups remained relatively stable over the past year. For foreign-born workers, the unemployment rate edged up to 4.4% from 4.3%, while the rate for US-born workers rose from 4.4% to 4.6%.
Missed Opportunities Amid Economic Uncertainty
According to Daniel Di Martino, a fellow at the Manhattan Institute, the trend reflects a slowing US economy. He noted that uncertainty surrounding tariffs is playing a role in this dynamic. While illegal immigration has declined, he speculated that this trend might be reversing soon.
“The aging workforce means fewer new entrants, and the tighter border policies have reduced the number of people joining the workforce,” Di Martino explained. He added that while this could be seen as positive in terms of managing illegal immigration, it also means a limited labor supply in essential service industries such as construction and restaurants.
Inflation and Labor Supply Challenges
Di Martino pointed to findings from a Pew Research Center analysis, which revealed that the foreign-born population in the US had declined by over a million—marking the first reduction since the 1960s. “It seems that the actual numbers might be exaggerated,” he stated, suggesting that the lack of a significant illegal influx since January is influencing Census responses from illegal immigrants.
Federal Reserve Perspectives on Job Market and Inflation
Federal Reserve Chair Jerome Powell recently indicated that the potential for interest rate cuts hinges on the job market and inflation trends. David Bier, who directs immigration studies at the Cato Institute, challenged claims about growth in the native-born population, emphasizing these estimates were based on a blend of birth, death, and immigration data rather than a full census each year.
He explained that if immigration decreases unexpectedly early in the year, it might falsely suggest an increase in US employment rates. “The unemployment situation for native-born workers hasn’t really improved; in fact, the rates have actually gone up,” Bier noted, underlining the complexities of the labor market amid these broader economic uncertainties.
