The latest employment report for March revealed the addition of 303,000 jobs, bringing the average for 2024 to 276,333 jobs per month. This figure surpasses the previous year's average of 251,000 jobs and significantly exceeds the pre-pandemic averages of 183,000 jobs per month from 2010-2019 and 125,000 jobs from 1939-2019.
This positive trend raises the important question of the sustainability of this growth. Historically, it was believed that adding between 60,000 and 100,000 jobs monthly would be sufficient to accommodate population growth and the increasing number of retiring Baby Boomers.
However, a recent report from the Brookings Institution suggested that the range for sustainable employment growth should be higher, ideally between 160,000 and 200,000 jobs per month. This shift is attributed to the enhanced economic capacity resulting from stronger immigration flows.
According to Greg Daco, chief economist at EY-Parthenon, the economy has benefited from increased immigration, with the number of employed foreign-born workers reaching a record high of 31.1 million in March, as per BLS data. The labor force participation rate for foreign-born workers stood at 65.9%, outpacing the 62% rate for native-born workers.
Brett House, a professional practice professor at the Columbia Business School, emphasized the positive impact of net immigration growth on the American workforce. He highlighted that immigrants contribute to productivity gains through technological innovation and refinements, which are particularly valuable in an election year marked by heightened scrutiny on immigration.
Overall, the data underscores the clear benefits that the United States is reaping from the rise in net immigration, signaling a positive trend for the economy and the labor market.
