The Case for Modern Immigration Reform

The U.S. stands at a critical point with workplace policy, as businesses nationwide face labor shortages that are not likely to subside without policy intervention. To remain competitive in today’s global economy, it is essential that the U.S. government come together with the business community. The goal: to address the shortcomings of the U.S. workplace immigration system, which has become outdated and unable to serve the needs of the modern workforce.

Businesses need a workplace immigration system that is predictable, efficient, transparent, and fair. To achieve that goal, the U.S. business community—and particularly HR executives—need to vocally advocate for these reforms.

According to SHRM data, a third of U.S. businesses say their local job market isn’t producing enough qualified candidates, and more than three-quarters of organizations have had difficulty recruiting for full-time regular positions in the last 12 months. Underscoring the critical role of immigration in supplementing workforce shortages, SHRM research found that among organizations that have hired foreign-born talent, nearly 2 in 3 (65%) report that this strategy has been somewhat successful (53%) or very successful (12%) in addressing hard-to-fill positions.

The increase in skilled workers not only enhances productivity but also drives innovation, thereby positioning the U.S. as a leader in global markets. It is critical for businesses to signal support for policies that remove arbitrary barriers to accessing foreign-born talent.
 

Closing the Workforce Participation Gap

U.S. businesses do not have access to the talent they need to fulfill current talent requirements, much less their future needs. Declining birth rates and the aging population will continue to pose significant challenges for businesses and affect employers’ capacity to attract and retain a skilled workforce.

The labor participation gap, which is characterized as the difference in employment between various groups, will only widen without properly addressing the root causes. The disparities in labor participation and growing skills misalignment means that federal policymaking needs to be smart and forward-thinking, with both long-term and immediate solutions.

Strong labor participation is fundamental for economic sustainability and growth, and immigration is a key strategy to address immediate gaps. Businesses require a diverse mix of skills, expertise, and perspectives to thrive, and foreign-born workers can help meet these needs.
 

Critical Sectors Face Labor Shortages

Despite the demonstrated need and desire for these workers, employers are having a tough time accessing foreign- born talent because of archaic laws that create bureaucratic nightmares and artificial stopgaps to legal employment. Additionally, the availability of visas often does not align with labor market demand. SHRM research shows that 57% of organizations say they would benefit from an increase in available and legally authorized workers on visas, whether temporary or otherwise.

The current labor shortages are particularly acute in sectors that require highly specialized skills, including:

• Technology: The tech industry faces a shortfall of skilled professionals, with companies struggling to fill positions in software development, cybersecurity, and data analysis.
• Health care: Hospitals and clinics are dealing with staffing crises, particularly in nursing and specialized medical fields.
• Agriculture: The agricultural sector heavily depends on seasonal and migrant labor, and current visa restrictions are causing significant disruptions.
• Construction: The construction industry is experiencing worker shortages, which delay projects and increase costs.
• Services: Service industries, including hospitality and retail, are also encountering shortages, affecting customer experience and business operations.

Many industrialized nations are facing similar labor pressures. As the demand for talent transcends borders, policymakers globally are looking to attract and retain talent, frequently looking to what the U.S. is doing—or not doing—as an example. It’s imperative for U.S. policymakers to recognize that international recruitment is crucial for the long-term success of U.S. businesses.
 

Global Mobility and Access to Talent Is a Business Imperative

Business leaders play a critical role in advocating for comprehensive workplace immigration reforms that support workforce development, economic growth, and American competitiveness.

Businesses must encourage Congress to view immigration as a solution to closing the workforce participation gap, rather than as a political quagmire. Federal investments in workforce development must include immigration reform to ensure a sustainable and skilled labor force and to maximize the return on that investment.

Businesses can only work within the confines of current immigration law, which is mired in inefficiencies, outdated concepts, and antiquated views on how foreign-born labor fits into the U.S. economy. It’s time to demand that Congress demonstrate civility and bipartisanship in the legislative process and bring about meaningful change.

Now that the 2024 U.S. election is behind us, it is crucial for business leaders to convey to lawmakers that U.S. employers demand change. Inaction is not acceptable anymore.

In a time of increasing workforce shortages, a united front is essential in advocating for timely and effective immigration reform.

By engaging in constructive dialogue and fostering partnerships across the political spectrum, business leaders can help shape policies that attract the skilled workforce necessary for economic growth and enhance the productivity of American businesses.