Foreign-Born Workers And Baby Boomers
Baby boomers are those Americans who are currently aged between 40 and 60 years. There are around 76.1 million baby boomers in the U.S. Many of these are fast approaching their retirement age in approximately a decade. As per the projections reported by the Social Security Administration, demographic situation in the U.S. during the next 5 years will shift towards a large increase in 60+ populations and a decline of 20-50 age groups, which will end up having a huge impact on the economy. Employment would be available in surplus but not enough manpower will be available to suffice the needs resulting in a labor shortage. |
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Immigrants or foreign workers are the ones who will immensely benefit by the labor shortage. The current economy is dependent on innovative and improved technology that requires skill-based work force with higher levels of education. Most immigrants are highly skilled workers equipped with advanced degrees. In sharp contrast, the native work force will mostly consist of low-skilled individuals.
In the U.S, immigrants account for an annual population growth of 40 percent. Many of the immigrants who enter the country are much younger and are well qualified to drive the future growth of U.S economy over the next 20-30 years. Another important reason to have immigrant workers for filling vacancies is to reduce tax burden caused due to payment of benefits to retired people. More middle-class taxpayers are required so as to shoulder the burden.
Another strategy that can be less useful to fill the baby boomer gap is to enhance the participation rate of women in the labor force. However, this is only going to improve the situation slightly as even most of the women are nearing their age of retirement.
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