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Grok 4.5Sep 24, 2026x-ai/grok-4.5-20260708

Will stopping immigration cause labor shortages?

Yes, stopping immigration (or reducing it to near-zero net levels) would cause labor shortages in the US and similar advanced economies, particularly in specific sectors, while slowing overall labor force and economic growth. This follows from demographics, the current role of immigrants in the workforce, and evidence from economic studies and real-world reductions.[1]

Demographic Reality and Labor Force Contribution

The US-born working-age population (roughly 18–65) has slowed dramatically and begun shrinking in recent years due to low fertility (below replacement since ~2008) and aging Baby Boomers retiring. Immigration has been the primary or sole driver of labor force growth for decades.[1]

•Foreign-born workers accounted for about 19.1% of the US civilian labor force in 2025 (BLS data), up from lower shares in prior decades. They have higher labor force participation rates on average (especially prime-age men) because they are younger and more likely to migrate for work.[2]
•Without immigration, the prime-age (25–54) labor force would have seen essentially no growth over recent decades. Projections (e.g., CBO and others) show the US-born working-age population shrinking over the next decade; immigration has offset this and is forecast to account for nearly all population/labor force growth. Zero or near-zero net immigration would drop sustainable monthly job growth to very low levels (tens of thousands or near zero in some estimates), far below historical norms, constraining GDP growth.[3][4]

Immigrants add to both labor supply and demand (as consumers and sometimes entrepreneurs), so the economy is not a fixed pie of jobs.

Sector-Specific Impacts

Immigrants are concentrated in certain industries and occupations where shortages would hit hardest:

•Construction: ~26–30% foreign-born (higher in trades like drywall, roofing, laborers; even higher shares in states like CA, FL, TX).[5][6]
•Agriculture/farming: Often 25–40%+ (higher for crop workers; many unauthorized).
•Leisure/hospitality, food services, cleaning/maintenance, healthcare support, transportation: Elevated shares (20%+ in many cases).[7]
•Also significant in manufacturing, professional services, and high-skill areas (e.g., STEM, healthcare).

These are often physically demanding, seasonal, lower-wage, or location-specific jobs that many native-born workers are less willing or able to fill at prevailing wages, due to preferences, skills, mobility (which has declined), education levels, or alternatives. Demand in services, care, construction, and food production continues to grow with an aging/richer population.[1]

Evidence from Reductions and Studies

•Recent US slowdowns/enforcement: Declines in net migration and increased deportations/enforcement have already been linked to slower payroll growth, shortages in restaurants/hotels/farms/construction, firm scaling-back or closures, and higher operating costs. Some analyses estimate large job losses (including for natives) from enforcement ripples, as businesses cut production. The Labor Department has noted risks of food production disruptions and that unemployed Americans are unlikely to fill farm shortages in sufficient numbers even at current wages.[8][9]
•South Korea guest worker (EPS) halt during COVID: A sudden ~22% drop in low-skilled foreign workers led to higher firm closure rates (especially lower-productivity ones), production/revenue losses, no significant increase in new native hiring, and wage declines for native workers (who were reassigned to lower tasks). Firms demanded more guest workers rather than substituting natives. Immigrants and natives were complementary.[10][10]
•US historical examples: Ending the Bracero program (Mexican farm workers) in the 1960s did not meaningfully raise native farm employment or wages; instead, it spurred mechanization and crop shifts. 1920s immigration restrictions had mixed/complex effects (some wage pressure in certain markets, but studies find limited or even negative wage effects for natives in highly exposed areas, plus accelerated automation/industrial shifts). Deportation programs (e.g., Secure Communities) have been associated with declines in native employment in affected areas, partly because immigrants fill complementary roles (e.g., childcare enabling more native mothers to work) and support local demand.[11][12]
•Broader research (including NBER, Fed, Brookings, etc.): Immigration eases vacancies and labor market tightness. Sudden stops or large reductions reduce firm growth, output, and can lower native wages/employment via complementarities rather than pure substitution. High-skilled immigration boosts innovation and firm creation. Low-skilled often complements natives by filling roles that free others for higher-value work.[13][14]

Counterarguments and Nuances

Some argue that stopping immigration would raise wages for low-skilled natives (by reducing competition), attract more natives into those jobs, spur automation, or improve conditions—as claimed in some narratives about the 1920s. There is evidence of modest wage effects for the most directly competing groups (e.g., prior low-skilled immigrants or high-school dropouts) in some studies (e.g., Borjas), and higher wages could draw some people in or encourage capital investment.[15]

However:

•Most rigorous empirical work finds small, zero, or positive average effects of immigration on native wages/employment overall, due to demand creation, task specialization/occupational upgrading by natives, and capital adjustment. Large reductions often shrink the economic pie.[16][17]
•Substitution is incomplete: Many jobs go unfilled or production falls rather than natives fully replacing immigrants. Higher wages raise prices for consumers (food, housing, care, services), potentially offsetting gains.
•Automation takes time and doesn't cover everything (e.g., personal care, certain services). Productivity and long-run growth can suffer from a smaller, older workforce.
•Effects vary by skill: High-skilled shortages hit innovation/tech/healthcare hard; low-skilled hit volume production and services.
•"Stopping" completely is extreme and would amplify issues given demographics. Gradual managed flows or legal pathways differ from abrupt stops/deportations. Unauthorized workers face different dynamics (e.g., wage suppression via vulnerability), but mass removal still disrupts.

In short, labor markets are dynamic, not zero-sum. Immigrants fill gaps created by native demographic stagnation and preferences, support growth, and often complement rather than displace natives. Stopping immigration would produce shortages (acute in immigrant-heavy sectors), slower growth, and broader economic costs that outweigh localized wage gains for some groups. Policy debates center more on levels, skills mix, legality/enforcement, and integration than an absolute stop.

Citations (17)

  1. 1econofact.orgAcademic
    https://econofact.org/immigration-and-waning-us-labor-force-growth

    Backs: “This follows from demographics, the current role of immigrants in the workforce, and evidence from economic studies and real-world reductions.”

  2. 2bls.govGovernment
    https://www.bls.gov/news.release/forbrn.nr0.htm

    Backs: “They have higher labor force participation rates on average (especially prime-age men) because they are younger and more likely to migrate for work.”

  3. 3epi.orgNonprofits and think tanks
    https://www.epi.org/publication/the-u-s-born-labor-force-will-shrink-over-the-next-decade-achieving-historically-normal-gdp-growth-rates-will-be-impossible-unless-immigration-flows-are-sustained/

    Backs: “Zero or near-zero net immigration would drop sustainable monthly job growth to very low levels (tens of thousands or near zero in some estimates), far below historical norms, constraining GDP growth.”

  4. 4reuters.comNews and mediaquality 1.00
    https://www.reuters.com/markets/us/us-migrant-halt-may-wipe-potential-job-growth-2025-06-24/

    Backs: “Zero or near-zero net immigration would drop sustainable monthly job growth to very low levels (tens of thousands or near zero in some estimates), far below historical norms, constraining GDP growth.”

  5. 5usafacts.orgData and toolsquality 0.91
    https://usafacts.org/articles/which-industries-employ-the-most-immigrant-workers/

    Backs: “Construction: ~26–30% foreign-born (higher in trades like drywall, roofing, laborers; even higher shares in states like CA, FL, TX).”

  6. 6nahb.orgNot yet classified
    https://www.nahb.org/blog/2026/04/Which-States-and-Construction-Trades-Depend-the-Most-on-Immigrant-Workers

    Backs: “Construction: ~26–30% foreign-born (higher in trades like drywall, roofing, laborers; even higher shares in states like CA, FL, TX).”

  7. 7epi.orgNonprofits and think tanks
    https://www.epi.org/chart/immigration-faq-2025-table-2-immigrants-comprise-a-significant-share-of-workers-in-both-high-and-low-paying-major-occupations-top-10-occupations-for-immigrants-by-share-of-employment-in-the-o/

    Backs: “Leisure/hospitality, food services, cleaning/maintenance, healthcare support, transportation: Elevated shares (20%+ in many cases).”

  8. 8washingtonpost.comNews and mediaquality 0.82
    https://www.washingtonpost.com/opinions/2026/04/14/immigration-crackdown-causes-massive-shortages-unskilled-labor/

    Backs: “The Labor Department has noted risks of food production disruptions and that unemployed Americans are unlikely to fill farm shortages in sufficient numbers even at current wages.”

  9. 9forbes.comNews and mediaquality 0.83
    https://www.forbes.com/sites/andrewtisch/2026/05/28/the-real-immigration-tragedy/

    Backs: “The Labor Department has noted risks of food production disruptions and that unemployed Americans are unlikely to fill farm shortages in sufficient numbers even at current wages.”

  10. 10nber.orgAcademic
    https://www.nber.org/digest/202606/what-happens-when-flow-immigrant-workers-suddenly-stops

    Backs: “Firms demanded more guest workers rather than substituting natives. Immigrants and natives were complementary.”

  11. 11brookings.eduNonprofits and think tanks
    https://www.brookings.edu/articles/the-labor-market-impact-of-deportations/

    Backs: “Deportation programs (e.g., Secure Communities) have been associated with declines in native employment in affected areas, partly because immigrants fill complementary roles (e.g., childcare enabling more native mothers to work) and support local demand.”

  12. 12nber.orgAcademic
    https://www.nber.org/system/files/working_papers/w23125/revisions/w23125.rev0.pdf

    Backs: “Deportation programs (e.g., Secure Communities) have been associated with declines in native employment in affected areas, partly because immigrants fill complementary roles (e.g., childcare enabling more native mothers to work) and support local demand.”

  13. 13lse.ac.ukAcademic
    https://www.lse.ac.uk/CFM/assets/pdf/CFM-Discussion-Papers-2026/CFMDP2026-04-Summary.pdf

    Backs: “Low-skilled often complements natives by filling roles that free others for higher-value work.”

  14. 14kansascityfed.orgGovernment
    https://www.kansascityfed.org/research/economic-bulletin/rising-immigration-has-helped-cool-an-overheated-labor-market

    Backs: “Low-skilled often complements natives by filling roles that free others for higher-value work.”

  15. 15nytimes.comNews and mediaquality 0.86
    https://www.nytimes.com/2024/11/22/business/economy/immigration-trump-economy.html

    Backs: “There is evidence of modest wage effects for the most directly competing groups (e.g., prior low-skilled immigrants or high-school dropouts) in some studies (e.g., Borjas), and higher wages could draw some people in or encourage capital investment.”

  16. 16theatlantic.comNews and mediaquality 0.80
    https://www.theatlantic.com/economy/archive/2024/10/immigration-working-class-wages/680128/

    Backs: “Most rigorous empirical work finds small, zero, or positive average effects of immigration on native wages/employment overall, due to demand creation, task specialization/occupational upgrading by natives, and capital adjustment. Large reductions often shrink the economic pie.”

  17. 17cato.orgNonprofits and think tanks
    https://www.cato.org/cato-journal/fall-2017/how-immigration-affects-workers-two-wrong-models-right-one

    Backs: “Most rigorous empirical work finds small, zero, or positive average effects of immigration on native wages/employment overall, due to demand creation, task specialization/occupational upgrading by natives, and capital adjustment. Large reductions often shrink the economic pie.”