09/12/2023
Here’s a fine piece of analytical reporting from Breitbart Business Digest: Bidenomics Is Pushing Down Wages by Flooding the Country with Migrants, by John Carney, September 8, 2023
Walmart is cutting wages for new employees stocking shelves and packing online orders.’
How is Walmart able to reduce wages in an environment of low unemployment and rising demand?
It’s very likely that a hidden-in-plain sight program of Bidenonomics is putting downward pressure on wages: uncontrolled migration.[Bold face in original]
Carney achieved the extremely unusual feat of finding a mainstream Economic Consultancy going on the record about this:
A new report from Fitch Ratings details that higher levels of migration into the U.S. in 2022 and 2023 has increased the labor supply, driven up labor force participation, eased labor shortages that were pushing wages higher, and allowed companies like Walmart to keep growing payrolls.
“Labor supply has increased, largely on the supply and participation of immigrants, and an uptick in the participation of prime aged workers between ages 25-54,” said Olu Sonola, Head of U.S. Regional Economics.
This is starting to show up in the macro wage statistics:
Fitch points out that year-over-year wage growth of all private industry employees is declining. Last year, wages rose around six percent, and now they are rising at a five percent annual rate, according to Fitch. Wage growth in the leisure and hospitality space — a prime employer for foreign workers — has declined significantly, Fitch writes.
Speaking of the chart above, Carney notes
…the average hourly earnings gain (blue line) is now running lower than it was for most of the last year of the Trump presidency. What’s more, these gains are worth far less to workers because inflation (red line) is so much higher.
(The trend looks bad too.)
Economic Consultancies live by telling their clients what they want to hear. For many years this has emphatically NOT included anything about the impact of immigration. At present I can only call to mind one, in 2005: VDARE.COM In Bear Stearns Study…Sort Of!
This reported an estimate by the Wall Street firm that the illegal immigrant population was 20 million as our friend DA King had suggested, rather than the 11 million claim which was already set in stone. John Derbyshire pointed out in April that The New York Times is still using the lower number almost 20 years later.
Possibly Olu Sonola, right, has license to ignore this taboo because of Black privilege. And perhaps, as a Nigerian immigrant, he is more alert to the question.
In any case Fitch has documented what I discussed in microcosm in NYC Mayor Adams Has Migrant Crisis “Solution”: Attack Living Standards Of N.Y. Working Class:
The cold-hearted savagery of the Democrat’s attack on Blue Collar America.
This is a content archive of VDARE.com, which Letitia James forced off of the Internet using lawfare.