Impact of Illegal Migration on Labor Market and Inflation

The influx of illegal migration in 2023, involving around 2 million individuals, has played a critical role in stabilizing the U.S. economy by preventing inflation rates from exceeding 8%. With a significant number of baby boomers retiring, the United States is facing a labor shortage, further exacerbated by a push for re-industrialization in response to global supply chain shifts. This shortage means that any removal of workers from the market can have immediate price impacts due to the lack of liquidity in labor. The presence of these migrants largely contributes to maintaining a robust workforce, especially in a time of historical low unemployment below 4%.