Yet, former President Donald Trump’s draconian immigration policies are taking a clearly felt toll on the U.S. labor market. That change has both economists and employers worried. His administration has ended life-saving humanitarian programs and increased cruel enforcement measures. These actions have had a chilling effect on both skilled and unskilled foreign workers.
Trump set the stage with his incendiary depiction of immigrants as “murderers, thieves, and drug dealers.” His rhetoric has undoubtedly stoked hateful and divisive sentiments from coast to coast. Yet his administration in recent weeks ended the humanitarian parole program that had offered asylum to thousands of Cubans, Haitians, Venezuelans and Nicaraguans. This action all but eliminated pathways for asylum seekers and other vulnerable communities to find safety and build a stable life in the United States.
Amid these developments, Trump’s administration conducted a high-profile raid at a Hyundai battery plant in Georgia, where approximately 300 South Korean workers were detained. This incident has raised alarms about the treatment of foreign laborers and the implications for international investment in the U.S. This raid sends a deeply worrisome signal to foreign manufacturers who would otherwise invest their operations in America’s heartland.
The financial burden on businesses seeking to hire skilled foreign workers has skyrocketed under Trump’s policies. The cost of H-1B visas has skyrocketed from $215 to a staggering $100,000. Dany Bahar, an economist, pointed out that “a $100,000 visa fee is not just a bureaucratic cost — it’s a signal.” He elaborated that this fee essentially communicates to global talent:
“You are not welcome here.” – Dany Bahar
This feeling strikes a chord with most industries that are dependent on talented foreign workers who help execute key functions within their companies. Trump’s immigration crackdown strikes at the arrival of foreign labor. Alongside the immediate end to pandemic-related immigration, these workers had recently patched labor shortages and underpinned wage growth.
The effects of these policies go far beyond highly trained labor. Trump is thus deporting low-wage laborers while scaring skilled foreigners away from coming to work in the U.S. This dual approach significantly increases the risk of resulting harm to our still-recovering economy. The new policies, experts warn, could bring an end to monthly U.S. job growth. In fact, it might even do so in future years.
Time’s running out, businesses are under increasing pressure these days. As a result, sectors that have come to depend on immigrant labor are experiencing a slowdown in job growth. Boyd, an owner of agribusiness enterprise, testified to the challenges in recruiting out-of-state labor to fill critical roles on the farm.
“People in the city aren’t coming back to the farm to do this kind of work,” Boyd stated. He emphasized the physical demands of agricultural labor by adding, “It takes a certain type of person to bend over in 100-degree heat.”
The effects of Trump’s immigration footprint aren’t limited to today’s local labor markets, they’re undermining national economic security. In reality, President Biden’s enforcement law pours $150 billion to immigration enforcement. This decision drains critical public funds that could be used for economic development and job creation out of the economy.
Layoffs in eco-focused spaces have too, as companies pivot to respond to the realities of the new landscape. When Goodwin Living recently laid off four Haitian employees, it brought into sharp focus the human cost of these policies. One affected worker lamented,
“The damage is already done, unfortunately.” – Harvard graduate from India (H-1B visa holder)
The long-term impact of Trump’s cruel and unnecessary immigration agenda makes it harder for him to woo foreign manufacturers to invest in America. The recent raid on South Korean workers has deeply compromised these initiatives and created doubt among potential investors.
Overall, Trump’s policies have positioned employers in a precarious situation, sending a clear message to think twice before hiring H-1B visa holders. Even privately, businesses are finding it difficult to pivot as they face not only a changing policy environment, but a decreasing labor talent pipeline.
