Competing For Jobs May Have Just Gotten Harder
This chart below, compliments of the St. Louis Fed, illustrates the unemployment rate by education level. In short, the more education (one has) corresponds to a lower level of unemployment, pari passu. This relationship remains consistent over the 25-year period under review.
How does this relationship relate to the latest plan by the Trump administration to slash legal immigration (into the U.S.A.) by targeting and thereby reducing low-skilled immigrants?
According to the Economist, nearly half of all immigrants who arrived between 2011 and 2015 were college-educated. Moreover, immigrants were more educated than Americans in 26 states.
The graphic to the left illustrates that America is in-fact importing more, not less, better-educated people.
So, Trump’s latest proposal will likely intensify competition among higher wage jobs while crowding out American workers, especially those that are less educated than their immigrant brother (or sister). My guess is this wasn’t the intended effect by Trump and his administration.
The next conversation you have that involves anybody looking to defer or forgo more education, just show them these two excellent graphics.
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Written By Johnson Bixby