At a recent news conference, Federal Reserve Chairman Jerome Powell highlighted a pressing issue in the U.S. labor market: the rising unemployment rate. He pointed out that when more people enter the job market than there are jobs available, unemployment is likely to increase. This statement came after the Fed announced a half-percentage point cut in the prime interest rate, partly due to concerns about job growth and rising unemployment.
Powell noted that mass illegal immigration is contributing to this problem. He stated, “If you’re having millions of people come into the labor force, then—and you’re creating 100,000 jobs [per month], you’re going to see unemployment go up.” His comments were significant because they were made without prompting, which is unusual for Fed officials who typically avoid discussing politically charged topics.
The official unemployment rate in the U.S. has been rising steadily since last year. After reaching a low in 2023, it climbed to 4.2 percent in August 2024, affecting over 7 million job seekers. A broader measure of unemployment, known as the U-6 rate, includes discouraged workers and those working part-time involuntarily. In August, this rate was 7.9 percent, translating to about 13.3 million people who would work if given the opportunity and fair pay.
Despite these rising unemployment figures, the influx of new foreign workers continues unabated. It is unclear whether Powell’s reference to “influx across the borders” specifically referred to illegal immigrants or all new arrivals, including those with green cards and work visas. Regardless, this influx has a significant impact on American workers.
In August alone, the U.S. economy added approximately 142,000 jobs while encountering 159,000 illegal immigrants attempting to enter the country. Among these individuals, about 103,000 were single adults likely seeking employment. Under the current administration, most of these individuals have been allowed into the U.S. as parolees or asylum seekers. Parolees can apply for work authorization immediately, while asylum seekers can do so after six months.
In addition to illegal immigration, the U.S. admits around one million legal immigrants each year through green cards. Many of these newcomers are working-age adults who will also enter the job market.
The country also issues various temporary worker visas. In fiscal year 2023, over 712,000 H-visas were granted to workers across different skill levels, not including their dependents. Additionally, around 445,000 F-1 student visas were issued, allowing holders to work under certain conditions while studying.
While not every new foreign worker displaces an American job directly, Powell’s remarks suggest that this influx is negatively affecting American job seekers and the economy overall.
Powell’s comments should serve as a wake-up call for policymakers regarding immigration practices. It may be time to secure borders and reconsider how many foreign workers are allowed entry into the United States. This version aims for clarity and conciseness while retaining essential information from the original article.
Related topics：