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The Role of Immigration in U.S. Labor Market Tightness

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Abstract

Immigrants contribute a large portion of the growth in the U.S. population and labor force. However, immigration flows into the United States slowed significantly following immigration policy changes from 2017 to 2020 and the onset of the COVID-19 pandemic. Analysis of state-level data shows that this migration slowdown tightened local labor markets modestly, raising the ratio of job vacancies to unemployed workers 5.5 percentage points between 2017 and 2021. More recent data show immigration has rebounded strongly, helping to close the shortfall in foreign-born labor and ease tight labor markets.

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  • Evgeniya A. Duzhak, 2023. "The Role of Immigration in U.S. Labor Market Tightness," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2023(06), pages 1-6, February.
    • Handle: RePEc:fip:fedfel:95711
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    References listed on IDEAS

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    1. Brian C. Cadena & Brian K. Kovak, 2016. "Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 8(1), pages 257-290, January.
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