Title 42 Just Ended. Will U.S. Immigration Policy Changes Close the Labor Gap?

Last week, Title 42, which was the emergency health authority put in place to turn away migrants during the COVID pandemic, ended. We’ve now seen a swirl of new activities and discussions around potential immigration policy changes – something that has been frequently discussed but rarely acted upon. In fact, the last major immigration reform happened in 1986 during the Reagan Administration.

I started thinking about both the role of immigration in our country as well as what it could potentially mean for our industry right now as manufacturing continues to struggle with a major labor shortage. My own parents immigrated to the U.S. when they were teenagers to pursue a better education and, later, a better life for me. In many ways, immigrants have been a foundation to our country.?

However, I believe, immigration is too often seen as an isolated issue, separated from the bigger economic landscape. Today, as our country struggles with a labor shortage in many industries, particularly manufacturing, I think it’s time to break down those silos and think about how immigration policy changes can impact our employment and economic ecosystem, potentially contributing to a higher quality of life for all. In fact, a recent article in?The Wall Street Journal?addressed this very topic, citing?the U.S. as an outlier to seeing immigration as a potential solution to labor shortages .

Retiring workforce, rapid innovation, consumer demand, COVID aftermath have all contributed to manufacturing labor shortage

When we look back at the manufacturing industry over the last 20 years, we see a host of factors that have brought us to where we are today. The Organization for Economic Co-operation and Development (OECD) reported that the?number of U.S. manufacturing jobs ?in the United States had been holding steady at 17 million since 1965, but then dropped by one third between 2000 and 2010. This resulted from?globalization, offshoring of production, automation and technology, and policy changes .

Displaced employees moved into other industries, and a negative stigma associated with manufacturing reduced the number of new entrants. Fast-forward 10 years, and we see shut-downs due to the COVID pandemic exacerbating the problem further, closing plants and boosting the number of jobs that can be done virtually or remotely.

At the same time, experienced manufacturing professionals are retiring, taking years of knowledge and experience with them. In 2017, nearly?one-quarter of the sector’s workforce were aged 55 or older . Consumer demand for personalization and delivery speed as well as rapid innovation are?leveling up the skills needed ?to work successfully in manufacturing today.

As a result,?2.1 million manufacturing jobs are expected to go unfilled by 2030 . This shortage occurs alongside a time when the U.S. is trying to reinvest in the built world by injecting trillions of dollars into things like the?Infrastructure Bill ?and the?CHIPS and Science Act , potentially generating even more jobs in the sector while trying to pave the way to a higher standard of living.

Proposed Immigration Policy Changes May Provide Short-Term Relief …?

A recent article in?Real Clear Policy ?offered advice for comprehensive bipartisan immigration reform including aligning admittance policies with labor shortages, opening pathways to retain productive workers, and relaxing provisions that require workers to leave the country during periods of unemployment. Ironically, many international students are unable to find employers willing to sponsor them, having only 60 days to find a new job before they take their skills to their home countries.?

Other developed countries facing similar labor shortages have streamlined their immigration systems by implementing programs that consider an immigrant’s education, experience, family ties, and language abilities as well as creating more direct routes to address specific labor needs. As a country, we need to reduce the amount of delays, uncertainty, and bureaucracy involved in the immigration system, making it easier for employers to hire immigrants.

… But It’s Important to Realize That It’s Not a Long-Term Solution?

Immigration policy reforms such as these may well provide some relief to the current labor shortage in manufacturing, but I think it’s important to realize that, in many cases, the solution doesn’t stop there. The manufacturing industry is being transformed right now, and we can't just afford to have workers today resting on their laurels, happy to continue doing the same jobs year after year. We need everyone to embrace an attitude of continuous improvement and learning, which will not only enhance individual careers but the industry and society as a whole.?

That’s why I believe that immigration policy changes must only be the first step in tackling the ongoing labor shortage in manufacturing. Yes, let’s find and give immigrants the chance to reach the American dream as my family has done. But, we, as an industry, need to upskill and train all of our workers and apply the innovation that will be required for manufacturers to succeed in an increasingly competitive market.

If we do that successfully, I think that results in a higher quality of life for all of us. As a country, we’re re-investing in the built world and?bringing manufacturing back to the U.S. , but we can’t do that without the right people. Let’s find a way to connect immigration policy back to our domestic industries that need skilled human resources, and then use the opportunity to increase the skill levels in the long run.?

What do you think? Can immigration policy make a difference in current labor shortages? What will make it a long-term solution?