In April 2022, U.S. inflation reached its highest rate since 1981, while its unemployment rate lingered just above the lowest it’s been in a half-century, according to the Consumer Price Index (CPI) and Employment Situation reports released by the Bureau of Labor Statistics (BLS). With over a third of the U.S. workforce retiring by 2030, the high labor demand and worker shortage will likely push inflation even higher.
There were 428,000 new jobs added in April alone and the economy experienced remarkable hiring gains despite the inflation. As the U.S. continues adding more jobs to the labor market, the 2.6 million jobs that are expected to be gained over the next decade will be met with a dwindling workforce.
The entire baby boomer generation (U.S. adults born 1946 to 1964), accounting for 29% of the U.S. workforce, will retire by 2030. Not only will there be a surge of job openings following their retirement, but with a smaller workforce the labor market will be unable to meet the growing labor demand.
Young Americans entering the workforce at the time will be outnumbered by those leaving, and the labor shortages will likely cause inflation to rise even higher. The U.S. needs a larger workforce to fill the anticipated surge of job openings. Many economists believe immigrant workers are the solution.
In addition to helping meet labor demands, statistics show that immigrant workers fill critical roles that are expected to grow in demand as boomer workers retire. The healthcare industry in particular will see significant growth as the boomer generation retires. A report released by the BLS forecasts a 16% increase in jobs by 2023. Although immigrants currently make up 17% the U.S. workforce, they represent 28% of physicians, 24% of dentists and 38% of home health aides.
With only one-in-five current U.S. immigrant workers retiring by 2030, they’ll likely make up a considerable portion of the U.S. workforce to help meet labor demands. Current policies surrounding U.S. immigration make the process tedious. It sometimes takes years to be approved for a visa.
With 2030 quickly approaching, the immigration process needs to be altered to allow more immigrants into the U.S. before the job surge occurs.
About Joon Ahn
Joon Ahn is a scientist turned entrepreneur, who founded Lawfully, after his own experience immigrating to the United States. Lawfully is a legaltech startup reimagining the legal industry with innovative technology solutions for both immigration applicants and lawyers. Lawfully is built by immigrants for immigrants. Lawfully is the first and only company that offers both analytics of individual immigration cases and financial services tailored to immigrants.
