Boston Herald

PAYING THE PRICE

Less immigrant labor in US contributi­ng to hikes

-

Just 10 miles from the Rio Grande, Mike Helle’s farm is so short of immigrant workers that he’s replaced 450 acres of laborinten­sive leafy greens with crops that can be harvested by machinery.

In Houston, Al Flores increased the price of his BBQ restaurant’s brisket plate because the cost of the cut doubled due to meatpackin­g plants’ inability to fully staff immigrant-heavy production lines. In the Dallas area, Joshua Correa raised prices on the homes his company builds by $150,000 to cover increased costs stemming partly from a lack of immigrant labor.

After immigratio­n to the United States tapered off during the Trump administra­tion — then ground to a near complete halt for 18 months during the coronaviru­s pandemic — the country is waking up to a labor shortage partly fueled by that slowdown.

The U.S. has, by some estimates, 2 million fewer immigrants than it would have if the pace had stayed the same, helping power a desperate scramble for workers in many sectors, from meatpackin­g to homebuildi­ng, that is also contributi­ng to supply shortages and price increases.

“These 2 million missing immigrants are part of the reason we have a labor shortage,” said Giovanni Peri, an economist at the

University of California at Davis, who calculated the shortfall. “In the short run, we are going to adjust to these shortages in the labor market through an increase in wages and in prices.”

The labor issues are among several contributo­rs to the highest inflation in 40 years in the United States — from supply chains mangled by the pandemic to a surge in energy and commodity prices following Russia’s invasion of Ukraine.

Steve Camarota, a researcher at the Center for Immigratio­n Studies, which advocates for less immigratio­n, believes a spike in illegal immigratio­n under President Joe Biden will make up whatever shortfall lingers from the pandemic. He also contends wage increases in low-paying sectors like agricultur­e are minor contributo­rs to inflation.

“I don’t think wages going up is bad for the poor, and I think mathematic­ally it is not possible to drive down inflation by limiting wages at the bottom,” Camarota told The Associated Press.

Immigratio­n is rapidly returning to its pre-pandemic levels, researcher­s say, but the U.S. would need a significan­t accelerati­on to make up its deficit. Given a sharp decline in births in the United States over the past two decades, some economists forecast the overall pool of potential

workers will start shrinking by 2025.

The immigrant worker shortage comes as the U.S. political system is showing less of an appetite for increasing immigratio­n. Democrats — who control all branches of the federal government and more recently have been the party more friendly to immigratio­n — haven’t tried to advance major legislatio­n permitting more new residents to the country.

A recent Gallup poll showed worries about illegal immigratio­n at a twodecade high. With a tough

election for their party looming in November, Democrats are increasing­ly divided about the Biden administra­tion’s attempt to end pandemic-related restrictio­ns on seeking asylum.

“At some point we either decide to become older and smaller or we change our immigratio­n policy,” said Douglas Holtz-Eakin, an economist and former official in President George W. Bush’s administra­tion who is president of the centerrigh­t American Action Forum. He acknowledg­ed a change in immigratio­n policy

is unlikely. “The bases of both parties are so locked in.”

That’s certainly the case in Republican-dominated Texas, which includes the longest and busiest stretch of the southern border. The Legislatur­e in 2017 forced cities to comply with federal immigratio­n agents seeking people who are in the U.S. illegally. Gov. Greg Abbott sent the Texas National Guard to patrol the border and recently created traffic snarls by ordering more inspection­s at border ports.

The turn against immigratio­n distresses some

Texas business owners. “Immigratio­n is very important for our workforce in the United States,” said Correa. “We just need it.”

He’s seeing delays of two to three months on his projects as he and his subcontrac­tors — from drywallers to plumbers to electricia­ns — struggle to field crews. Correa has raised the standard price of his houses from $500,000 to about $650,000.

Correa said, “We’re feeling it and, if we’re feeling it at the end of the day as builders and developers, the consumer pays the price.”

 ?? AP ?? LOOKING FOR HELP: Joshua Correa, left, steadies a scaffoldin­g for Samuel as they work at a home under constructi­on in Plano, Texas, on Tuesday. There are an estimated 2 million fewer immigrants than expected in the United States, helping fuel a desperate scramble for workers in many sectors, from meatpackin­g to homebuildi­ng, that are also contributi­ng to shortages and price increases.
AP LOOKING FOR HELP: Joshua Correa, left, steadies a scaffoldin­g for Samuel as they work at a home under constructi­on in Plano, Texas, on Tuesday. There are an estimated 2 million fewer immigrants than expected in the United States, helping fuel a desperate scramble for workers in many sectors, from meatpackin­g to homebuildi­ng, that are also contributi­ng to shortages and price increases.

Newspapers in English

Newspapers from United States