Marketplace All-in-One Why the Fed is thinking about immigration
Dec 11, 2025
In this engaging discussion, reporter Nova Safo reveals how GDP growth is surging without a matching increase in job creation, thanks to productivity gains driven by automation and AI. Adam Posen shares insights on the easing U.S.-China trade tensions while highlighting China's economic struggles. Meanwhile, reporter Amy Scott showcases innovative AI-powered recycling technologies that enhance sorting efficiency and cut costs. Together, they explore the complexities of today's economic landscape, including the impact of immigration on labor markets.
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Immigration Redefines Healthy Job Growth
- Falling immigration changes what 'healthy' job growth looks like because there are far fewer new job seekers.
- That shift can make months of near-zero or negative payrolls possible without a recession, complicating Fed policy.
Immigration Shrinks Demand As Well As Supply
- Immigrants affect both labor supply and demand because they are workers and consumers.
- Reduced immigration shrinks consumer demand, which in turn reduces employers' need to hire.
U.S.-China Relations More Temperate, For Now
- U.S.-China relations are more temperate now: less hot rhetoric, more pragmatic engagement.
- Domestic weakness in China means its export surplus partly reflects weak internal demand, not robust competitiveness.