foreign worker

Trump’s immigration crackdown weighs on the U.S. labor market

Maria worked cleaning schools in Florida for $13 an hour. Every two weeks, she’d get a $900 paycheck from her employer, a contractor. Not much — but enough to cover rent in the house that she and her 11-year-old son share with five families, plus electricity, a cellphone and groceries.

In August, it all ended.

When she showed up at the job one morning, her boss told her that she couldn’t work there anymore. The Trump administration had terminated the Biden administration’s humanitarian parole program, which provided legal work permits for Cubans, Haitians, Venezuelans and Nicaraguans like Maria.

“I feel desperate,’’ said Maria, 48, who requested anonymity to talk about her ordeal because she fears being detained and deported. “I don’t have any money to buy anything. I have $5 in my account. I’m left with nothing.’’

President Trump’s sweeping crackdown on immigration is throwing foreigners like Maria out of work and shaking the American economy and job market. And it’s happening at a time when hiring is already deteriorating amid uncertainty over Trump’s tariffs and other trade policies.

Immigrants do jobs — cleaning houses, picking tomatoes, painting fences — that most native-born Americans won’t, and for less money. But they also bring the technical skills and entrepreneurial energy that have helped make the United States the world’s economic superpower.

Trump is attacking immigration at both ends of the spectrum, deporting low-wage laborers and discouraging skilled foreigners from bringing their talents to the United States.

And he is targeting an influx of foreign workers that eased labor shortages and upward pressure on wages and prices at a time when most economists thought that taming inflation would require sky-high interest rates and a recession — a fate the United States escaped in 2023 and 2024.

“Immigrants are good for the economy,’’ said Lee Branstetter, an economist at Carnegie-Mellon University. “Because we had a lot of immigration over the past five years, an inflationary surge was not as bad as many people expected.”

More workers filling more jobs and spending more money has also helped drive economic growth and create still more job openings. Economists worry that Trump’s deportations and limits on even legal immigration will do the reverse.

In a July report, researchers Wendy Edelberg and Tara Watson of the centrist Brookings Institution and Stan Veuger of the right-leaning American Enterprise Institute calculated that the loss of foreign workers will mean that monthly U.S. job growth “could be near zero or negative in the next few years.’’

Hiring has already slowed significantly, averaging a meager 29,000 a month from June through August. (The September jobs report has been delayed by the ongoing shutdown of the federal government.) During the post-pandemic hiring boom of 2021-23, by contrast, employers added a stunning 400,000 jobs a month.

The nonpartisan Congressional Budget Office, citing fallout from Trump’s immigration and trade policies, downgraded its forecast for U.S. economic growth this year to 1.4% from the 1.9% it had previously expected and from 2.5% in 2024.

‘We need these people’

Goodwin Living, an Alexandria, Va., nonprofit that provides senior housing, healthcare and hospice services, had to lay off four employees from Haiti after the Trump administration terminated their work permits. The Haitians had been allowed to work under a humanitarian parole program and had earned promotions at Goodwin.

“That was a very, very difficult day for us,” Chief Executive Rob Liebreich said. “It was really unfortunate to have to say goodbye to them, and we’re still struggling to fill those roles.’’

Liebreich is worried that 60 additional immigrant workers could lose their temporary legal right to live and work in the United States. “We need all those hands,’’ he said. “We need all these people.”

Goodwin Living has 1,500 employees, 60% of them from foreign countries. It has struggled to find enough nurses, therapists and maintenance staff. Trump’s immigration crackdown, Liebreich said, is “making it harder.’’

The ICE crackdown

Trump’s immigration ambitions, intended to turn back what he calls an “invasion’’ at America’s southern border and secure jobs for U.S.-born workers, were once viewed with skepticism because of the money and economic disruption required to reach his goal of deporting 1 million people a year. But legislation that Trump signed into law July 4 — and which Republicans named the One Big Beautiful Bill Act — suddenly made his plans plausible.

The law pours $150 billion into immigration enforcement, setting aside $46.5 billion to hire 10,000 Immigration and Customs Enforcement agents and $45 billion to increase the capacity of immigrant detention centers.

And his empowered ICE agents have shown a willingness to move fast and break things — even when their aggression conflicts with other administration goals.

Last month, immigration authorities raided a Hyundai battery plant in Georgia, detained 300 South Korean workers and showed video of some of them shackled in chains. They’d been working to get the plant up and running, bringing expertise in battery technology and Hyundai procedures that local American workers didn’t have.

The incident enraged the South Koreans and ran counter to Trump’s push to lure foreign manufacturers to invest in America. South Korean President Lee Jae Myung warned that the country’s other companies might be reluctant about betting on America if their workers couldn’t get visas promptly and risked getting detained.

Sending Medicaid recipients to the fields

America’s farmers are among the president’s most dependable supporters.

But John Boyd Jr., who farms 1,300 acres of soybeans, wheat and corn in southern Virginia, said that the immigration raids — and the threat of them — are hurting farmers already contending with low crop prices, high costs and fallout from Trump’s trade war with China, which has stopped buying U.S. soybeans and sorghum.

“You’ve got ICE out here, herding these people up,’’ said Boyd, founder of the National Black Farmers Assn. “[Trump] says they’re murderers and thieves and drug dealers, all this stuff. But these are people who are in this country doing hard work that many Americans don’t want to do.’’

Boyd scoffed at Agriculture Secretary Brooke Rollins’ suggestion in July that U.S.-born Medicaid recipients could head to the fields to meet work requirements imposed as part of the One Big Beautiful Bill Act. “People in the city aren’t coming back to the farm to do this kind of work,’’ he said. “It takes a certain type of person to bend over in 100-degree heat.’’

The Trump administration admits that the immigration crackdown is causing labor shortages on the farm that could translate into higher prices at the supermarket.

“The near total cessation of the inflow of illegal aliens combined with the lack of an available legal workforce results in significant disruptions to production costs and [threatens] the stability of domestic food production and prices for U.S. consumers,’’ the Labor Department said in an Oct. 2 filing to the Federal Register.

‘You’re not welcome here’

Jed Kolko of the Peterson Institute for International Economics said that job growth is slowing in businesses that rely on immigrants. Construction companies, for instance, have shed 10,000 jobs since May.

“Those are the short-term effects,’’ said Kolko, a Commerce Department official in the Biden administration. “The longer-term effects are more serious because immigrants traditionally have contributed more than their share of patents, innovation, productivity.’’

Especially worrisome to many economists was Trump’s sudden announcement last month that he was raising the fee on H-1B visas, meant to lure hard-to-find skilled foreign workers to the United States, from as little as $215 to $100,000.

“A $100,000 visa fee is not just a bureaucratic cost — it’s a signal,” said Dany Bahar, senior fellow at the Center for Global Development. “It tells global talent: You are not welcome here.”

Some are already packing up.

In Washington, D.C., one H-1B visa holder, a Harvard graduate from India who works for a nonprofit helping Africa’s poor, said Trump’s signal to employers is clear: Think twice about hiring H-1B visa holders.

The man, who requested anonymity, is already preparing paperwork to move to the United Kingdom.

“The damage is already done, unfortunately,’’ he said.

Associated Press writers Wiseman and Salomon reported from Washington and Miami, respectively. AP writers Fu Ting and Christopher Rugaber in Washington contributed to this report.

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India expresses concern about Trump’s move to hike fees for H-1B visas

The Indian government expressed concern Saturday about President Trump’s latest push to overhaul American immigration policy, dramatically raising the fee for visas that bring tech workers from India and other countries to the United States.

The president on Friday signed a proclamation that will require a $100,000 annual fee for H-1B visas — meant for high-skilled jobs that tech companies find hard to fill. He also rolled out a $1-million “gold card” visa for wealthy individuals, moves that face near-certain legal challenges amid widespread criticism that he is sidestepping Congress.

If the moves survive legal muster, they will deliver staggering price increases. The visa fee for skilled workers is currently $215.

India’s Ministry of External Affairs said Saturday that Trump’s plan “was being studied by all concerned, including by Indian industry.” The ministry warned that “this measure is likely to have humanitarian consequences by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the U.S. authorities.”

More than 70% of H-1B visa holders are from India.

H-1B visas, which require at least a bachelor’s degree, are meant for high-skilled jobs that tech companies find difficult to fill. Critics say the program undercuts American workers, luring people from overseas who are often willing to work for as little as $60,000 annually. That is well below the $100,000-plus salaries typically paid to U.S. technology workers.

Trump said Friday that the tech industry would not oppose the move. Commerce Secretary Howard Lutnick claimed that “all big companies” are on board.

Representatives for the biggest tech companies, including Amazon, Apple, Google and Meta, did not immediately respond to messages for comment. Microsoft declined to comment.

“We’re concerned about the impact on employees, their families and American employers,” the U.S. Chamber of Commerce said in a statement. “We’re working with the Administration and our members to understand the full implications and the best path forward.”

Lutnick said the change would probably result in far fewer H-1B visas than the 85,000 annual cap allows because “it’s just not economic anymore.”

“If you’re going to train people, you’re going to train Americans,” Lutnick said on a conference call with reporters. “If you have a very sophisticated engineer and you want to bring them in … then you can pay $100,000 a year for your H-1B visa.”

Trump also announced that he will start selling a “gold card” visa with a path to U.S. citizenship for $1 million after vetting. For companies, it would cost $2 million to sponsor an employee.

Trump also announced a “platinum card,” which could be obtained for $5 million and would allow foreigners to spend up to 270 days in the U.S. without being subject to U.S. taxes on non-U.S. income. Trump announced a $5-million gold card in February to replace an existing investor visa — this is now the platinum card.

Lutnick said the gold and platinum cards would replace employment-based visas that offer paths to citizenship, including for professors, scientists, artists and athletes.

Critics of H-1Bs visas who say they are used to replace U.S. citizens in certain jobs applauded the move. U.S. Tech Workers, an advocacy group, called it “the next best thing” to abolishing the visas.

Doug Rand, a senior official at U.S. Citizenship and Immigration Services during the Biden administration, said the proposed fee increase was “ludicrously lawless.”

“This isn’t real policy — it’s fan service for immigration restrictionists,” Rand said. “Trump gets his headlines, and inflicts a jolt of panic, and doesn’t care whether this survives first contact with the courts.”

“The president has no legal authority to tax American visas,” said Michael Clemens, a George Mason University economist who studies immigration. “He has the authority to charge reasonable fees for cost recovery, not set fees at $100,000 or $100 million or whatever suits his personal … arbitrary capricious whims.

“If the president feels that H-1B visas are harmful, he can work with the people’s representatives in Congress to reform the laws that regulate those visas. His choice to legislate by proclamation subverts our entire immigration governance system,’’ said Clemens, who is also a senior fellow at the Peterson Institute for International Economics. “Beyond that, it is poisonous [and] irresponsible to do so with no warning, no public debate, leaving hundreds of thousands of workers and millions of their colleagues and family members in chaos and fear.’’

Lutnick said the H-1B fees and gold card could be introduced by the president but the platinum card needs congressional approval.

Historically, H-1B visas have been doled out through lottery. This year, Amazon was by far the top recipient of H-1B visas, with more than 10,000 awarded, followed by the Indian firm Tata Consultancy, then Microsoft, Apple and Google. Geographically, California has the highest number of H-1B workers.

Critics say H-1B spots often go to entry-level jobs, rather than senior positions with unique skill requirements. And while the program isn’t supposed to undercut U.S. wages or displace U.S. workers, critics say companies can pay less by classifying jobs at the lowest skill levels, even if the specific workers hired have more experience.

As a result, many U.S. companies find it cheaper to contract out help desks, programming and other basic tasks to consulting companies such as Wipro, Infosys, HCL Technologies and Tata — all in India — and IBM and Cognizant in the U.S. These consulting companies hire foreign workers, often from India, and contract them out to U.S. employers looking to save money.

Ron Hira, a professor in the political science department at Howard University and a longtime critic of H-1B visas, said the plan was a move in the right direction.

“It’s a recognition that the program is abused,’’ he said.

Raising the visa fee, he said, was an unusual way to address the H-1B program’s shortcomings. Normally, he said, reformers seek ways to raise the pay of the foreign workers, eliminating the incentive to use them to replace higher-paid Americans. He noted approvingly that Trump’s proclamation calls for the U.S. Labor Department to “initiate a rule-making [process] to revise the prevailing wage levels’’ under the visa program.

Critics of H-1B visas have also called on the lottery to be replaced by an auction in which companies vie for the right to bring in foreign workers.

First Lady Melania Trump, the Slovenian-born former Melania Knauss, was granted an H-1B work visa in October 1996 to work as a model.

In 2024, lottery bids for the visas plunged nearly 40%, which authorities said was due to success against people who were “gaming the system” by submitting multiple, sometimes dubious, applications to unfairly increase chances of being selected.

Major technology companies that use H-1B visas sought changes after massive increases in bids left their employees and prospective hires with slimmer chances of winning the random lottery. Facing what it acknowledged was likely fraud and abuse, U.S. Citizenship and Immigration Services this year said each employee had only one shot at the lottery, whether the person had one job offer or 50.

Critics welcomed the change but said more needs to be done. The AFL-CIO wrote last year that while changes to the lottery “included some steps in the right direction,” it fell short of needed reforms. The labor group wants visas awarded to companies that pay the highest wages instead of by random lottery, a change that Trump sought during his first term in the White House.

Associated Press writers Ortutay and Kim reported from Oakland and Washington, respectively. AP writers Adriana Gomez Licon in Fort Lauderdale, Fla., Elliot Spagat in San Diego and Paul Wiseman in Washington contributed to this report.

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