Payrolls expanded by 192,000 positions in March, beating the average for the miserable winter months, but still short of the rebound that many were expecting. With an average of about 90,000 legal immigrants entering the country each month, only 100,000 of this gain may be available for native-born Americans.
The math is depressing. In March more than 9 million native-born Americans were unemployed. At the current rate of job creation it will be 7.5 years before all these native-born unemployed find jobs. By then, of course, the population will be larger. And we haven’t even considered the millions who have avoided unemployment by dropping out of the labor force.
More depressing still: the absence of any MSM chatter regarding the unemployment-busting potential of an immigration moratorium.
One good March sign: the labor force participation rate (LPR) picked up slightly, suggesting that workers are being lured back into the job hunt as hiring expands. Even this positive may pertain to foreign-born workers only, however. As we point out below, over the past 12 months participation rates for native-born workers have declined. Only immigrants have a higher LPR this March than last.
The Household Employment Survey—the only report where immigrant and native-born American employment figures are broken out separately—found a robust 476,000 jobs were added last month. Our analysis indicates that native-born American workers gained jobs at virtually the same rate as immigrants.
In March:
So native-worker displacement was on hiatus in March. As a result, our New VDARE.com American Worker Displacement Index (NVDAWDI) remained at its February level—109.4. But the displacement of native-born American workers by immigrants during the Obama years is still painfully evident in the NVDAWDI graphic:
Native-born American employment growth is the blue line, immigrant employment growth is in pink, and NVAWDI—the ratio of immigrant to native-born American job growth—is in yellow. The graphic starts at 100.0 for both native-born American and immigrant employment in January 2009, and tracks their growth since then.
From January 2009 to March 2014:
A more detailed picture of American worker displacement, February 2013 to February 2014, is seen in seasonally unadjusted data published in the BLS monthly job report:
Employment Status by Nativity, March 2013-March 2014 (numbers in 1000s; not seasonally adjusted) | |||||
| Mar-13 | Mar-14 | Change | % Change | |
Foreign born, 16 years and older | |||||
Civilian population | 38,106 | 38,557 | 451 | 1.2% | |
Civilian labor force | 25,061 | 25,474 | 413 | 1.6% | |
Participation rate (%) | 65.8% | 66.1% | 0.3 %pts. | 0.5% | |
Employed | 23,197 | 23,811 | 614 | 2.6% | |
Employment/population % | 60.9% | 61.8% | 0.9 %pts. | 1.5% | |
Unemployed | 1,865 | 1,662 | -203 | -10.9% | |
Unemployment rate (%) | 7.4% | 6.5% | -0.9 %pts. | -12.2% | |
Not in labor force | 13,044 | 13,083 | 39 | 0.3% | |
| Native born, 16 years and older | ||||
Civilian population | 206,889 | 208,701 | 1,812 | 0.9% | |
Civilian labor force | 129,451 | 130,154 | 703 | 0.5% | |
Participation rate (%) | 62.6% | 62.4% | -0.2 %pts. | -0.3% | |
Employed | 119,501 | 121,279 | 1,778 | 1.5% | |
Employment/population % | 57.8% | 58.1% | 0.3 %pts. | 0.5% | |
Unemployed | 9,950 | 8,875 | -1,075 | -10.8% | |
Unemployment rate (%) | 7.7% | 6.8% | -0.9 %pts. | -11.7% | |
Not in labor force | 77,438 | 78,547 | 1,109 | 1.4% | |
Source: BLS, The Employment Situation - March 2014, Table A-7, April 4, 2014. PDF | |||||
Over these 12 months:
But note that, according to the table, the foreign-born civilian population increased by 482,000 in the past year. This is far less than would be expected given the current legal influx of 90,000 per month.
Is the government understating foreign-born population growth? Is it understating foreign-born employment? Are native-born Americans being displaced at an even greater clip than the official numbers indicate?
We do not know. But it’s possible that things are systematically worse than even VDARE.com thinks.
Edwin S. Rubenstein (email him) is President of ESR Research Economic Consultants.