U.S. Faces Labor Crunch: Drop in Foreign-Born Workers Threatens Economic Growth

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The U.S. economy is facing a growing concern as the number of foreign-born workers drops sharply. Economists warn that stricter immigration rules are significantly reducing migrant labor, which many industries rely on heavily.

Sectors such as agriculture, construction, hospitality, and health care are among the hardest hit, with labour shortages slowing productivity and inflating operational costs. With fewer foreign workers, businesses are finding it harder to fill roles, delaying expansion plans and cutting back on output in some places.

This decline is also feeding into inflationary pressures, as supply constraints raise costs for consumers. Economists argue that reversing some of the restrictive policies could help alleviate the shortages, improve productivity, and support more sustainable economic growth in the months ahead.

The trend has ignited debate among policymakers: some see tightening immigration as preserving domestic job opportunities, while others believe the drop in workforce participation threatens long-term growth. Many experts suggest that a balanced immigration approach—one that ensures legal pathways and aligns with labour market needs—is essential to maintain economic momentum.

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