Though too early to evaluate, preliminary studies show an increasing demand for a blue-collar worker in the post pandemic era in almost all Sates in the U.S. This development has been a paradox for many experts for it was unprecedented in the preceding economic recessions.
Experts were predicting the evolving job automation of robotics and artificial intelligence advancement would wipe out most of the blue-collar jobs and make human workers obsolescence. However, the current developments in labor markets make these public discourses not true, at least for the time being. On the other hand, there are still many economists who strongly argue that the current developments are transitory that would die-out once the enhanced unemployment benefits expire, in person schools open, the fear of Covid-19 settled down, and the re-shoring of U.S manufacturing industries level off.
However, most analyses have forgotten the impact of the strict immigration policy that the U.S government has followed in recent years. According to the study by the Pew Research Center , the monthly migrant apprehension at the U.S- Mexico border in February 2021 was approaching the record number observed a year ago showing the tight immigration policy continuing in the current administration. If this trend continues in all fronts for a long time, it will for sure will have an impact on the imbalance of supply and demand in low-skill sectors in the U.S. Similarly, the number of people who have received a U.S green card has sharply declined in 2020 and contributing its share to the current imbalance.
The Economist has also estimated the America’s immigrant population appears to be in sustainable decline for the first time in half a century. If this profound immigration reversal continues could affect the U.S economy in the long run for companies’ profitability will be dwindled because of increasing wage rates.