May 21, 2007

Employers want more immigrants so wages won't increase

From the NYT:

"Employers, who helped shape a major immigration bill over the last three months, said on Sunday that they were unhappy with the result because it would not cure the severe labor shortages they foresee in the coming decade."

When faced with a shortage markets raise prices. So what employers are really concerned with is that absent large scale immigration wages are going to significantly increase over the coming decade. So according to the NYT at least, employers want more immigrants to push down wages.

This doesn't mean that immigration is "bad" but it would be far more honest for the NYT to say that employers favor immigration to lower wages than to alleviate a labor shortage.