Trump’s Crackdown on Illegal Aliens is Driving Wage-Growth in US Construction Industry by up to 30%
There is a strong correlation between immigration—particularly illegal immigration—and wages. This should be obvious to anyone familiar with the fundamental principle of supply and demand: more supply (workers) means lower prices (wages), and vice versa.
Despite the fact that this correlation between immigration and wages is well-documented, it is not obvious to many liberal economists, who see immigration as an unfettered economic benefit. The evidence suggests otherwise, including new data reported by Fox.
According to the National Association of Home Builders, more than 56% of America’s developers are reporting labor shortages, which is forcing them to increases wages and improve working conditions to attract new talent.
In fact, according to Ted Wilson of Residential Strategies Inc. construction costs have risen by 30% this year—the majority of which is due to higher wages and increased overtime pay. That is, companies are being forced to hire American workers, and pay wages at fair market value.
Because President Trump’s crackdown on illegal immigration is preventing them from hiring illegal aliens, who undercut the labor market, shortchanging American workers. The impact of this (while often ignored) is significant.
According to Stan Market, CEO of Texas’ Marek, “half of the workers in construction in Texas are undocumented.”
He goes on to say that many of them are leaving Texas, either to find refuge in sanctuary cities and states, and “many of them are going back to Mexico.”
This is good news for American workers, who have been hammered in recent decades. In fact, real wages have not risen for the median American worker since 1973, in part because of the deflationary effects of illegal immigration.
And just to be clear, this is not an isolated event—wages will rise in tandem with deportations and other labor restrictions (such as if, and when, the RAISE Act becomes law).
We know this because it’s happening elsewhere already. For example, the restriction of temporary work visas in Maine earlier this year led to higher wages, better working conditions, and lower unemployment—all good for the average American citizen.