ISSUE PAPER

ESSENTIAL WORKERS KEEP THE ECONOMY GROWING

What are Essential Workers?

“Essential Workers” are the unskilled and semi-skilled workers that are employed in all sectors of our economy.  Essential workers include restaurant workers, retail clerks, construction trades people, manufacturing lineworkers, hotel service workers, food production workers, landscape workers, and health care aids. These individuals often work in the jobs that many Americans do not choose, but which are “essential” to keep our economy and our country growing. 

Is there a Shortage of Essential Workers?

Yes.  Our robust economy has resulted in tight labor markets in virtually all sectors of the economy and in most areas of the country.  Unemployment nationally is at its lowest point in 30 years, having been at 5% or below (which used to be considered “full employment”) since April 1997!

The shortage could hurt our economy.  Chairman Alan Greenspan of the Federal Reserve has noted extensively in Congressional testimony that tight labor markets threaten the continued growth of the economy and could result in inflation. The Federal Reserve’s “Beige Book” of Current Economic Conditions, reports “Many Districts noted the lack of available workers continued to hamper overall economic growth.”  Companies report difficulties retaining permanent staff and hiring replacements, curtailing expansion plans, and many small businesses are struggling to survive without enough employees.

Aren’t there enough U.S. workers for these Jobs?

The demographics say no.  The Bureau of Labor Statistics has reported that by 2006 we will have 10 million more jobs than people in the workforce.  This shortage is expected to last for two decades!

Unemployment is below “full employment” rates.  60% of metropolitan areas have unemployment rates of 4% or less, 30% have rates of 3% or less and 5% have rates of 2% or less!  This essentially means that everyone who is employable is employed.

Employers are doing the “right” things.  Essential Worker employers have led the way in welfare-to-work, school-to-work and other initiatives that have been successful in reducing welfare rolls and getting graduates jobs, but it is still not enough.  Employers are raising wages, offering improved benefits, signing bonuses and relocation pay, but it’s still not enough. 

Isn’t there already an immigration category for essential workers that these employers can use?

No.  The H-2B temporary visa classification is only useful for employers who can establish that their need for foreign workers is temporary, that is: seasonal, a one-time occurrence, or a peakload or intermittent need.  If the employer’s need is year-round or does not fall into one of the definitions used by the Department of Labor or Immigration Service, the employer cannot use the H-2B classification to fill its labor needs. A nonimmigrant visa category does not exist for employers who need workers for more than one year or for employers who cannot demonstrate that their need is temporary.  This is particularly onerous for employers, for example in the construction and hospitality industries or for those involved in elder and childcare.  Although a permanent immigrant category exists for non-professionals in occupations that require less than two years’ experience, the backlog of waiting cases is over ten years long, making the category useless.  As a result, employers are often forced to send their work overseas, cut back, or close their doors.

What needs to be Done?

Chairman Greenspan and others have called upon Congress to reexamine our immigration policies as a means to alleviate the labor shortages.

Congress Needs to Update Our Immigration Laws to Meet the Needs of Our Growing Economy.  Employers need a regulated, workable immigration system that allows them to sponsor foreign nationals when there is evidence of a shortage of available U.S. workers, and that allows those individuals already here and working to obtain status.  The program should allow foreign nationals to obtain green cards in a reasonable amount of time.

KEEP AMERICA WORKING, FIX OUR IMMIGRATION SYSTEM!