The Myth of "Skilled" Migrant Workers and Their Impact on Western Economies
The Myth of "Skilled" Migrant Workers Boosting Western Economies
There is a common narrative that illegal immigration is vital for western economies, claiming that these economies "need illegals" to bolster the economy and meet labor market demands. Further, it is often suggested that many of these immigrants are "skilled workers" that the west urgently needs. However, the question arises, how much do the US and Europe truly rely on illegal immigrants to sustain their economies? And how many of these immigrants actually contribute valuable skills to the labor markets? Would the economies collapse without them, or would they actually fare better?
It's important to highlight that in the US, there is substantial evidence suggesting that the Biden Administration has been manipulating statistics for the past four years, including labor statistics. While there was indeed a noticeable shortage of workers in the service sector during the COVID-19 lockdowns, recent revisions to Bureau of Labor Statistics (BLS) numbers have eliminated at least 819,000 jobs that Biden initially claimed credit for, implying that these jobs never existed.
These job numbers were used by Democrats to advocate for open borders, arguing that without illegal immigrants, the surge in labor demand would result in a worker shortage crisis. Despite the lack of specific job sector statistics distinguishing between legal and illegal immigrants, there is little evidence to suggest they play a significant role in society.
In the US, immigrants primarily enter the low-skill service sector and health services sector. This often involves entry-level nursing home care and similar jobs. Another common area of employment is construction, where they provide cheap labor for home building, but this has not resulted in lower housing costs.
Simultaneously, millions of illegal immigrants increase housing demand, thereby raising the prices of new homes and rentals. Immigrants are granted access to government subsidies as long as they are under review for asylum or refugee status, often receiving more government aid than natural-born citizens. Both California and Oregon are currently implementing housing loan programs available only to immigrants.
According to 2022 census SIPP data, approximately 59% of non-citizen households in the US use one or more welfare programs, compared to 39% of US-born households. The mainstream media and Democrats often attempt to obscure welfare statistics by citing legal immigrant numbers instead of illegal immigrant numbers.
Approximately 47% of illegal immigrants to the US never completed high school (compared to 8% of US-born citizens). It is estimated that illegal immigrants cost US taxpayers at least $150 billion in public services each year while paying only $25 billion in taxes. While some economists point to a potential $324 billion GDP gain from migrant workers, this is mostly derived from wages that illegal immigrants send to their families abroad.
In the UK, migrant data is seldom tracked by the government, presumably to keep the public uninformed. However, it is evident that, like in the US, migrants (especially from third-world countries) do not contribute skilled labor. UK migrants predominantly work in the service and health sectors, mainly in low-level nursing jobs, elderly facilities, some work in tech, and the rest are unemployed.
The UK estimates that at least 1.7 million migrants are unemployed and receiving welfare, costing taxpayers upwards of £8.5 Billion ($11 billion) annually.
In Germany, welfare costs soared in 2024, with 47% of government handout recipients being migrants. The total cost of $49 billion is 14.8% higher than in 2023, 18.4% higher than in 2020, and 23% higher than in 2015. In the EU, migrants from Africa and Asia are significantly overrepresented in health services.
In conclusion, the concept of "skilled migrant workers" bolstering western economies is a complete fallacy. Illegal immigrants, in particular, are a net negative and place a significant burden on the welfare system. They also increase housing costs by creating excessive demand with insufficient supply, which in turn drives up inflation in almost every other sector of the economy. The roles they do fill could be easily covered without them by offering minor subsidies or tax benefits to American citizens.
Like most countries today, the US and European nations should be vetting migrants and only accepting those who bring value and a willingness to assimilate. Otherwise, they serve no beneficial purpose.
Bottom Line
The narrative of "skilled" migrant workers saving western economies is more of a myth than a reality. These immigrants often place a significant strain on the welfare system and contribute to inflation in various sectors. Instead of relying on this workforce, countries could incentivize their own citizens through subsidies or tax benefits. It's important to have a balanced and fair immigration policy that prioritizes the interests of the country and its citizens. What are your thoughts on this matter? Feel free to share this article with your friends and discuss it. Also, don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.