The Record Job Growth Farce... Americans Are Getting Left Behind

Is Cheap, Exploitable Labor from Illegal Immigration to Blame for Your Stagnant Wages?

As we are all painfully aware, America's economy is entrenched in this very challenging situation that is putting an immense strain on workers and families. Persistently high inflation rates not seen in decades are eroding purchasing power and real wage growth is non-existent or negative for many. Compounding this is the tightrope walk of the Fed trying to rein in inflation without tipping the economy into recession. But one factor exacerbating the current economic woes that cannot be ignored is illegal immigration.

As we look into the immigration issue we can also observe that the latest inflation data paints a grim picture for American consumers. The consumer price index rose 6.8% over the last 12 months, far outpacing wage growth. Grocery prices jumped 13.5%, the largest yearly increase since 1979. Shelter costs, which make up about 40% of CPI, climbed 8.1% - the biggest rise in decades. Energy prices surged as well with gasoline spiking 22.6%. No matter where you look, prices are soaring.

This rampant inflation is quickly eating away at real wages and consumer purchasing power. While nominal wages have risen 5.1% over the last year, after adjusting for inflation, real wages have declined 3.9%. For many American workers, especially lower income ones, they are having to stretch every dollar further just to afford basic necessities and maintain their standard of living.

Some of the culprits behind this inflationary spiral are complex - supply chain disruptions, the Russian invasion of Ukraine, trillions in stimulus, and more. Also the Feds extremely accommodating monetary policy during the pandemic that left interest rates near zero for too long has also been a primary driver. The Fed has been playing catch up through fast, aggressive rate hikes, but getting inflation under control may require pushing the economy into a recession.

While battling soaring prices is the top economic issue for many, American workers also face persistent wage stagnation and a growing dearth of full-time employment opportunities. Despite low headline unemployment figures, there are concerning underlying labor dynamics at play.

Analysis from the Center for Immigration Studies found that although 5.7 million total jobs were created in the year leading up to March 2023, all of those net gains went to immigrants (some legal but mostly illegal). There has been no overall job growth for Americans going back to early 2018. To make matters worse, nearly 90% of the jobs created over the past year were part-time or low-wage positions.

So while the economy has been adding jobs since the pandemic recovery began, virtually all of those new jobs are going to immigrant workers instead of raising employment rates for those born in the United States. American workers are being left behind while competing for a shrinking pool of full-time, higher-paying jobs against both illegal immigrants taking low-skilled work and legal immigrants brought in on visas for skilled roles.

It is therefore impossible to analyze America's current labor struggles without discussing the role illegal immigration plays. Estimates vary due to the clandestine nature of illegal migration, but around 11-22 million undocumented immigrants are believed to reside in the country, with over 600,000 illegal border crossings in fiscal year 2022 alone.

Many of these immigrants, driven by economic motivations, directly compete with American citizens for jobs. They make up a significant portion of the workforce in industries like agriculture, construction, hospitality, food services, and more. Their willingness to work for lower wages undercuts normal labor costs and drives down overall compensation.

When we look at the government's latest headline job numbers it makes it seem like the economy is absolutely booming and creating abundant opportunities.

However, the employment statistics and economic indicators we depend on have become essentially meaningless and hugely distorted by illegal immigration. How can we even make prudent policy decisions when their basic data is so misleading and absolutely rotten at the core? American workers deserve far better than being relegated to bit players in their own nation's economy while illegal immigrants take priority.

It's a slap in the face to legitimate American workers. They should be the ones benefiting from economic expansions and labor shortages through plentiful job opportunities and rising wages. But they're being undermined at every turn by this uncontrolled influx of illegal immigrant labor.

Companies are also to blame as they love to tout the strong "official" job numbers as an excuse for why they don't need to raise compensation and improve conditions to attract American workers. As long as they can rely on this endless pipeline of undocumented labor, willing to accept substandard wages and treatment, they have no incentive to change. So while Uncle Sam celebrates fantastic job growth, average Americans will continue treading water, looking for a life preserver to be tossed their way.

A 2021 analysis by the Center for Immigration Studies tied this high rate of illegal immigration to wage losses for US workers, especially in lower-skilled occupations where they are more likely to compete directly. They estimated that every 10% increase in the size of a state's illegal immigrant population results in a 2.1% reduction in wages for the average American worker.

Illegal immigrants put downward pressure on wages and working conditions - preventing the full benefits of a tight labor market from being realized. As mentioned, their presence makes it easier for companies to hire cheaper, exploitable labor rather than raise wages and retention incentives.

America's current economic state is in turmoil and will require multipronged solutions and difficult tradeoffs on a variety of fronts. Reducing inflation without sparking a major recession appears increasingly challenging. Improving real wage growth while preventing more native job losses will involve supply-side policies to boost productivity, much smarter, enforced immigration policies, and enhanced border security.

Within all of these issues, the illegal immigration component, which crosscuts wage stagnation, labor shortages, housing prices and government budgets, remains one of the most contentious issues with no clear path forward at this time. But any serious effort to strengthen American workers' economic standing cannot ignore the very real impacts caused by this travesty of millions of undocumented immigrants competing in the labor force.