Recent discussions at the Economic Outlook Conference at Central Washington University highlighted the ongoing challenges faced by immigrants and employers in the U.S. labor market, particularly in relation to the concept of 'brain waste' among foreign-born workers [ea0013c7]. Santiago Perez, an associate professor at the University of California, Davis, emphasized the historical context of immigration, noting that migrants constitute about 13% to 15% of the U.S. population. He pointed out that while first-generation immigrants often struggle to achieve economic parity with native-born Americans, their children tend to catch up economically, reflecting a consistent trend across generations [ea0013c7].
The conference also addressed misconceptions surrounding immigrants, such as the belief that they predominantly occupy low-skilled jobs. Jon DeVaney, president of the Washington Tree Fruit Association, clarified that employers must first seek local workers before turning to international recruitment, thus challenging the narrative that immigrants displace native workers [ea0013c7].
In a broader context, a recent analysis by Gueyon Kim, Cassandra Merritt, and Giovanni Peri explored the emergence of 'new work' in the United States, highlighting that many current job roles, such as 'data warehouse architect' and 'internet marketer', did not exist before 2000. By 2018, 63% of jobs were in positions that were not present in the 1940s [408d9a64]. The study identified local human capital as a crucial factor in generating these new roles, with a strong correlation between education levels and the prevalence of non-routine tasks in the workforce [408d9a64].
The phenomenon of 'brain waste' among foreign-born workers is particularly relevant in this context, as many highly educated immigrants find themselves in low-wage jobs, leading to significant economic losses for both the individuals and the country. From 2009 to 2013, the U.S. lost over $40 billion annually in tax revenue due to 1.5 million educated immigrants working in low-skill positions [98c8122e]. This mismatch is largely attributed to the current workforce training model, which often overlooks advanced job skills in favor of entry-level training. Licensing and credentialing barriers further exacerbate this issue, preventing skilled immigrants from entering their professional fields [98c8122e].
To combat these challenges, experts suggest that workforce entry models should be revised to provide short-term employment opportunities while simultaneously offering long-term technical and English training. Some states have already implemented legislation to facilitate license eligibility for foreign-educated professionals, and various grants and loans are available to help bridge the gap between foreign qualifications and U.S. requirements [98c8122e].
The study on 'new work' also emphasizes that urban areas, particularly those with a high concentration of college-educated individuals, are more likely to experience growth in these emerging job types. Interestingly, global factors such as technology and trade have a weaker impact on the creation of new jobs compared to local educational dynamics [408d9a64]. This underscores the importance of human capital in adapting to the evolving job market and suggests avenues for further research into the interplay between education and employment trends in the U.S.
In the UK, mainstream economists argue that immigration does not significantly undercut native wages, with empirical studies showing only small effects on wages. The dynamic nature of economies allows employers to adapt to migrant labor, as seen in UK meat processing plants that shifted to longer shifts due to the availability of migrant workers. Additionally, farmers increased their labor-intensive crops post-2004 due to seasonal workers [76d7985e]. The labor shortages following Brexit prompted the UK government to issue more visas for migrant workers, highlighting that native workers may not fill these gaps even with higher wages due to market pressures [76d7985e].