‘Two years of lost immigration’ is responsible for half of missing workforce
washingtonpost.com
washingtonpost.com
"We've tried everything, including raising pay $3 an hour!" => after a wave of significant inflation. Really?
I understand many service workers are undocumented, but where are the I-9 forms going? Every job I've had made me fill one out, by law. Here we have a number of organizations outing themselves in print (in the capital no less) as not complying. Well the article implies that anyway.
Are they paying taxes on these workers? How does this actually work?
You can just be dishonest on an I9 form. It's a piece of paper, not a mindreading lie detector.
The article doesn’t expand just takes widespread fraud as a fact of life.
It is hurting corporate profits though…
Caveat: The actual numbers show that salary increases at the bottom have been slightly higher than inflation. However, food, energy and housing inflation have all been higher than overall inflation, which are items people at the bottom face more. So those who’ve seen their salaries increase the most have also almost certainly seen higher inflation than the headline number.
Also, wages were already increasing prior to the pandemic due to several successful efforts to increase minimum wages, etc. So even without the pandemic and the associated immigrant slowdown, there would likely have been some continued wage increases.
Studies show that immigration counter-intuitively improves the wages of the lower class, mainly through 2 effects:
1. Immigrants spend money. "A rising tide floats all boats". 2. Immigrants take the entry level positions. So in a country without immigrants a high school dropout might become a janitor. But with immigrants the immigrant becomes the janitor and the high school dropout now has differentiable skills -- aka a solid grasp of English. So they get a position as a manager or customer facing position or something.
Put a different way, with immigration the wages of janitors goes down, but native born citizens are more likely to have better jobs than janitor.
“Don’t worry that your wages are lower, the white collar workers in NYC/SF are making even more, so our average wages have actually increased!”
Due to the fact that we're also still fairly supply constrained on output they also resist hiring more workers at higher salaries when they're finding it hard to source their inputs (and since everyone is in that same boat, they're not missing out compared to their competitors by not focusing on increasing output).
And right now the Fed is also signalling that they're going to crash the economy so it makes absolutely zero sense to start hiring more people at higher wages right before a recession.
Absolutely not. Modern Democrats are neoliberals to the extreme. Neoliberals are very pro-immigration.
The only truly radical policy that has come out of Congress in decades was Obamacare, and that was precisely because the Democrats were just barely able to assemble 60 votes in the Senate. (Most Democrats wanted single-payer, or at least a single-payer option, but a bill including single-payer couldn't clear a 60 vote hurdle as at least one Democrat, Joe Lieberman, publicly opposed single-payer.) And even then, with the death of Ted Kennedy they immediately lost the ability to beat a filibuster, which is why the House was forced to pass the Senate bill verbatim, which was unusual. Usually there's a reconciliation process for bills passed between the two houses, after which each house has a pro forma vote on the reconciled bill. But even a pro forma vote on a reconciled bill is subject to a Senate filibuster, with the exception of purely budgetary bills, which Obamacare clearly wasn't. (There were subsequent changes passed as budgetary amendments, though, both by Democrats and later by Republicans--e.g. elimination of the individual mandate penalty.)
And don't forget, precisely because the Democrats passed Obamacare, the Republicans swept the 2010 election, taking the House and taking 6 Senate seats from the Democrats--who went from 56 in 2010 to 53 in 2011, not counting the 2 seats lost earlier in 2010--in December 2009 Democrats had 58 votes plus 2 Independents. The 2010 election was the biggest rout in 60 years.
Unless and until the Senate filibuster goes away, you can't really make any sweeping claims about what policies a party could or would actually enact. Because of the filibuster the parties are beholden to a handful of members. I'm not entirely sure the filibuster should be eliminated, but if I were a Senator I probably wouldn't stand in the way, either.
If you follow the politics, both houses and both parties could easily enact significant immigration reform on a simple majority vote. Albeit not radical reform so long as the filibuster existed. However, immigration has proven a tremendous wedge issue for Republicans, which Trump leveraged to great effect. Moreover, even though a vast majority of Americans and Congressmen wish to change the status quo, any specific, concrete policies lead to a lot of heated disagreement because it turns out different people have conflicting motivations for wanting reform, especially within the Republican camp. Moreover, the Republicans learned a lesson watching Obamacare--if you can't enact perfect reform (i.e. Democrats being forced to compromise on single-payer), your own supporters will crucify and disown you. A big part of the Republican 2010 sweep was upset Democrats walking away because they didn't get their preferred option. So especially for Republicans, immigration reform is a lose-lose-lose.
Is this really the case? My experience with neoliberalism is they are certainly pro-globalism, but would be quite happy physically keeping everyone where they currently are (all the better to exploit the wage gaps).
Capitalists pay the lowest wages they can get away with. While they exploit all workers (by appropriating as profits much of the value created by those workers), they exploit the workers in the poorer countries far more than those in the rich countries.
They can get away with this largely because the poor countries are underdeveloped (and are often kept that way on purpose). Workers in those countries have fewer options, thus can be exploited more.
[1] https://en.m.wikipedia.org/wiki/Gang_of_Eight_(immigration)
[2] https://www.msn.com/en-us/news/politics/last-minute-push-to-...
[3] https://www.washingtonpost.com/news/monkey-cage/wp/2015/02/2...
[4] https://www.hoover.org/research/republican-case-immigration-...
https://twitter.com/MichaelRStrain/status/160341481147113472...
https://fred.stlouisfed.org/series/MEHOINUSA672N
from a dataset which actually tracks data outside that range:
https://www.cbo.gov/system/files/2022-11/58353-HouseholdInco...
a more robust dataset, which you would get by simply searching "US real median household income" and opening the first result citing census data, indicates that, charitably, real median household income has risen about 25% since 1980:
https://fred.stlouisfed.org/graph/?g=bOeD
wikipedia's article, which has thoroughly succumbed to link rot, in addition to citing the above data, also provides historical census data neatly summarized on page 5 of this census report pegging an increase at about 15-20% since 1964:
https://www.census.gov/content/dam/Census/library/publicatio...
this took me 3 minutes
Also surely 2019 is not the peak of the business cycle? Feb 2020 is.
Peak-to-now real income is up for bottom 50% of households since then (https://realtimeinequality.org/?id=income&incomeend=09012022...) but flat for the rest due to inflation.
And the number of Americans I know who work in tech who are looking for work right now as H1B's post on LinkedIn and publicly make deals to keep Americans out of jobs proves this. Its all being done in public.
The thing is, the original H1B ideal is temporary; and so is they cant meet market demands sustainably that way, not if they are growing, and they should be growing or they are dying, and so such companies end up being dependent on offshore imports of H1B people and end up dying when they cant replace them or grow new roles without them, because they started to depend on them and then could not be sustainable outside of that bubble on the real market.
The dependency they have is on subsidized cheap labor from other countries that don't asked to be treated like humans, not a lack of skilled tech workers. They have more tech workers than they need, many with more skills and more years of experience at higher end tech roles, many who are looking for work right now in the holidays, and they are just not hiring them because they want to save a few pennies and hire a developer that they have legal ownership of as an indebted visa-slave.
And if your hiring software developers, I know many who are looking for work, who are American citizens, who would gladly take the job that an h1b is currently sitting in.
Could you explain further?
The study that supports the claim that the H-1B program suppresses US tech wages is about 20 years old, and no longer reflects the current reality.
In fact, a 2017 Glassdoor study found that the wages of H-1B workers were 2.8% higher than their American counterparts: https://www.glassdoor.com/research/h1b-workers/
The US creates several million new jobs each year on average, and the H-1B cap is 85K, which is an order of magnitude less than the number of jobs created per year. In order for the H-1B program to meaningfully impact the US labor market, the H-1B cap needs to be increased significantly.
H-1B hires are not evenly distributed across all job types. A large fraction of them going to particular industries, like is seen in big tech, could move the needle in those industries.
Any increase in labor supply would have some effect on the wage level in an industry.
I was over there working on an E-3 a few years back, and I'm pretty sure I got hired because it was easier (e.g. cheaper) to set up a hiring funnel in another country than within the US. That doesn't automatically mean lower wage growth, but it could.
I tentatively think that skilled migrant workers lower wages within a single sector but have a neutral or positive effect on wages overall, and the US tech labour market is so hot that I don't feel bad for making its wages drop, stagnate, or increase slightly slower than they might otherwise, assuming the overall impact on every other sector is positive.
But there's definitely not enough Americans skilled enough for those jobs.
Should FAANG be forced to train Americans rather than hire H1B workers? I don't know.
It's a mystery to me they bring people to the US instead of just employ them in other countries in the first place.
But if the US didn't allow H1B workers, they definitely would.
Should American companies not be able to have foreign offices staffed with foreign workers? I don't know.
But this sounds like a recipe for handicapping American companies vs global competitor...
The problem with this is that H1B workers work a lot more than 2.8% harder, on average, and companies know this.
Many H1B workers are practically abused. They may be doing the work of two engineers. Unlike a typical work relationship between an upper-middle class professional and a tech company, separating from the company may not be realistic recourse because the work-visa immigration status is a Damoclean sword.
I've seen this bite even harder for L1B immigrants who work for multinational tech companies and get lured to the US from abroad, because even if you find another company willing to sponsor your H1B you are still subject to the caps. It's pretty messed up.
Markets are global especially on the internet. If Facebook and Twitter don't compete on a global scale, TikTok will eat the lunch you believe you are entitled to.
The entire article discusses that immigration is needed and American's don't want those jobs. I don't need a team of the most skilled and experienced PhDs. A big portion of my team are just reliable people who can keep the lights on.
This is the hard truth but people don't want to face up to it.
https://h1bdata.info/topcompanies.php
8 of the top 10 H1B filers are bodyshops. And of course the average salary for the 8 bodyshops is way below the 2 non-bodyshops.
People come from Europe all the time and become citizens, and you don’t say “ohh look at all these foreigners on visa taking away all the jobs and suppressing the wages” because they transition to citizenship and you don’t see them on visas for long.
Create a fair immigration system and you won’t see H1Bs around for long.
You hit the Nail right on the Head!
H1B is being used as an easy scapegoat for all the ills plaguing the US labour market.
On the other hand, children of undocumented immigrants get citizenship without any quota. So there are many more new citizens from Mexico and Central America vs Europe. I am not saying they are bad citizens, but there is some rational limit to immigration that protects native culture from sudden disruption against wishes of existing citizens. So, defining what is fair is not as easy as you might think.
The system truly isn't equal. And from outside is bit bizare.
The US has 50m foreign-born residents, the second highest is Germany at 16m. There's no country on Earth which takes in more immigrants (I'm actually one of them!) yet my whole life I've seen nothing but people demanding that they take in even more.
1. If you want equality then apply it to H1B itself. Why is it that you want equality when it comes to green cards that give people equal rights, but not when you want to bring them in to do work? Apply country caps for H1B visa and let’s see how that works. Equality for employment green cards but not for visas is not a system of equality.
2. Apply equality everywhere else as well, family immigration especially.
3. You could design a system that is more equal if you really wanted. You are quick to blame huge populations, but also ignore the fact that countries like India and China are almost as big as Europe. Take into account the size as well if you wanted equal representation.
Defining fair is not easy, but you can at least try.
One of the major competitive advantages of the US is that it brain drains the rest of the world through its education system and career opportunities, but that’s starting to dwindle after a decade of neglect. US’s loss and Canada’s win, I guess.
Many H1B workers wish to become citizens but can't due to decades-long backlogs. If your post is actually meant to campaign for them to get quicker green cards and citizenship, I applaud you.
This needs to be repeated time and time again until people "get it". It was designed as a "legal way" of immigrating to the US.
This is a bogus self-serving argument that is offered by many entitled "American programmers" who want wage hyperinflation. Tech workers are among the highest paid professions anywhere, and still people like you complain about wage suppression, ha! How self-serving & entitled of you.
There is 100%+ employment in tech, and the people "looking for work" you speak of, wouldn't even pass a basic programming test and unemployable IMO.
Not everyone is an MIT Alum and full employment is a dream that could only come from the halls of MIT
There are not “enough software developers in America to fully meet all of every American companies technical needs”. There is virtually no unemployment among competent software developers and almost every team I have ever talked to consistently struggles to hire. It doesn’t pass the sniff test, as there are relatively few of these workers in any case.
Equally, workers are absolutely entitled to complain about companies abusing people in precarious positions—such as H1B visa holders—to reduce costs. Certain orgs are notorious for this. It is not “entitled” to think that workers should be paid the market rate for their work, and the reality is that software developers are highly-paid in part because their skills are hard to come by and drive significant financial benefit (i.e. they are worth it). You don’t need to put the effort in to defend companies who have famously colluded to suppress wages!
Is the real problem not the existence of a silly visa system in the first place? If you want workers, then allow them to enter the country and compete freely at market wages for roles - without making them so subject to the whims of their sponsoring employer. That system is basically designed to facilitate abuse.
There's widespread support in business for reform. Many of us are supportive of a points scheme for visas using salary indexed to COL, academic credentials etc as a better filter. Unfortunately congressional gridlock makes it extremely unlikely.
My objection was to the smug, sneery condescension about "cheap labor","wage suppression","no shortage if you pay enough". IMO it's driven in large part by racism and nativism coupled with self-serving avarice (delicious irony there) - not "wage concerns" or "h1b worker exploitation". That's the BS cover story!
Imagine you provide a tech union with manpower. Who do you think will hold the reins? You or some guy like this? Will you arm them so that they can execute on what they dream of?
Consider carefully what a union of people like this can do. Consider carefully what you will support. In the end, they have themselves to look after.
Absolutely wrong!
Software Developers and Engineers Shortage in the US: The case for Global Talent: https://www.revelo.com/blog/software-developer-shortage-us
It's highly competitive and demanding basically the opposite of what ppl going through in the regular school system right now.
Outside faang,twitter was famed to be a more relax place. its gone now after elon take over. stripe is famous for being aws 2.0. these are the places are either i worked at or have friends there. Also consider thr currently layoff is largely performance based
for wlb, 40-50 is the norm if u r good. if u are average in putting out the effort, i dont think u can survive the ramp up in the first year with less than 50h per week. companies like amazon doesnt even give u time to ramp up.
But if u survive the first 2 year, u r probably fine. An 'average' employee in this sense will be vastly capable of dealing with the org chaos and oncall, and churn out the commits at the same time. The wlb will be much better if he is in a stable org. He will be more experienced in gaming the reviews too.
Once again, i never mentioned the quality of the candidates, i only talk about the work and performance. i think most of the ppl are capable,just whether they really tried.
I think companies that went remote probably automatically shifted it up towards 50 as default, just because the home/work separation became more leaky.
(No data to back any of this up, but I’m still unconvinced that the FAANGs are anything special other than being big mega-corps)
Unless you’re Native American, your forefathers and mothers moved to the US at a time where it was easier to do so. That’s a lottery you happened to win and now you want to shut the doors. Your parents helped create the story of success, and that’s how the story will continue. No visas means no Jobs, no Nadella, no Brin, no Tesla, no very many people who create and sustain so many institutions that make you great. Immigration and entrepreneurship are the lifeblood of your story.
Don’t worry so much about slicing the pie. Grow the pie.
The process of immigrating to North America today is so entirely different from how it was the 1800s it's a bit disingenuous to equate the two.
I live in a country where we seem to work hard to keep people from neighbouring countries out. It does nothing for our competitiveness, just allows the current inhabitants who pretty much did nothing except have the right ancestors to get benefits and opportunities that neighbours don’t have.
In your case, Canada benefits greatly from the US having a more restrictive immigration policy. Net positive for Canada. It’s a total failure to have smart people not able to enter your country, because they’ll go somewhere. Quote SamA: https://twitter.com/sama/status/1554459751353683969
If that doesn’t convince you, consider the case of Russia now, with people leaving daily. If immigration is net negative then surely Russia is winning hand over fist because people are leaving the country in droves. Obviously not. It’s a horror show for them.
But health-care, education both primary and later. Raising costs of living and housing. It is not exactly pretty picture from outside.
> 18% of the workforce has been wiped out by abortion, and this number will climb to 23% by 2035.^1
> While labor force participation may rise in the short run due to mothers choosing to work instead of taking time off to raise kids, unrestricted abortion is likely to decrease labor supply in the long run. Since the Roe decision in 1973 an estimated 63 million abortions have occurred in the United States. If all of these aborted babies had been otherwise carried to term and survived until today, they would add nearly 20 percent to the current U.S. population, and nearly 45 million would be of working age (18 to 64).^2
(1) https://www.hli.org/resources/abortion-affect-united-states/ (pro-life site warning, but it cites sources including the Census Bureau and Planned Parenthood's own research arm, the Guttmacher Institute)
(2) https://www.jec.senate.gov/public/_cache/files/b8807501-210c...
Restricted abortion leads to the availability of plentiful cheap, low-level labor, but mostly not the sort of labor that the modern economy really needs.
I guess that's what sucks about public policy. You have to pursue many goals and some of them may conflict with others.
And how many of those would be well-adjusted productive members of society?
There's a gap between understanding the numbers and practice.
As for the truly unwanted ones, ~33 million couples in the U.S. are infertile. There are untold thousands of families waiting to adopt. A few of them are listed at https://www.americanadoptions.com/family_profile/browse
As for me, I'm raising several children. My wife and I have considered adopting on top of that. I was adopted.
Steve Jobs was adopted. So was John Hancock. Nelson Mandela. Leo Tolstoy. Ray Liotta. Simone Biles.
In terms of economic and societal impact, I'd wager somewhere in those 60 million missing children, there were a few hundred kids that could have grown up and made a real positive impact on our lives. We'll never know how many diseases would have been cured by now, or Olympic medals won. Millions of lives. Just gone.
So say about 50,000 adoptions that are foster children or given up at birth. Who is going to adopt the extra 830,000 per year? Maybe those 33 million infertile couples? There are 400,000 kids in foster care right now and apparently those 33M are not jumping at the opportunity to adopt them.
Yes, some famous people were adopted. So were some terrible people. I don't see either one being an argument for or against.
It is certainly not our right to demand this so we can get cheap labor.
^This may sound ridiculous (I certainly think it does) but I think contrasting it with your post is a good thought experiment. Can you see any meaningful difference between your comment and mine? I can't, but I'd be very interested to hear your reasoning if you feel they are different somehow.
So if they didn't abort, how exactly were these children going to be raised? By homeless single mothers now that the cowardly, responsibility-shirking men have left them?
You seem to think that preventing abortion will magically turn accidental parents into good parents.
>We'll never know how many diseases would have been cured by now
We'll also never know how many people who made big contributions would have been murdered by unwanted, abused, and neglected children who grew up to become criminals.
But imagine a two-year old child in front of you. His mother is poor and feels she cannot care for him. He lives in the slums of a country where children cannot be adopted. Should his mother be allowed to kill him?
> We'll also never know how many people who made big contributions would have been murdered by unwanted, abused, and neglected children who grew up to become criminals.
It's probably true that if we kill impoverished unwanted toddlers, future crime rates could potentially decline. That doesn't make it moral to do so.
The meta level is the last refuge of the scoundrel. Most arguments are best evaluated at the object level.