- Nov 6, 2014
- 63,634
- 80,334
- AFL Club
- Port Adelaide
THE REAL REASON TEXAS SAYS ONE THING AND DOES ANOTHER. IT SURVIVES ON MIGRANT LABOUR
www.texasmonthly.com
“But arguably the most important factor—one too rarely considered—is the interplay of supply and demand. In 2021, as the pandemic began to ease, “We’re Hiring” signs started to appear in the windows of businesses across the U.S. Acute labor shortages hobbled entire industries, interrupting supply chains and fueling inflation. In response, a record number of workers crossed the southern border.
Many industries have slowly recovered from the COVID-era labor crisis. Economists generally agree that the surge in immigration played a huge role in that recovery. But across the country, employers still say they can’t fill vacancies, even as some have increased wages to varying degrees. “America is facing a worker shortage crisis: There are too many open jobs without people to fill them,” the U.S. Chamber of Commerce warned in September. According to the chamber, Texas has just eighty workers for every hundred open jobs.
The deficit in construction is historic, by some measures. Associated Builders and Contractors, a trade association, reported that in 2022 the industry averaged more job openings per month than it had ever recorded. Texas building executives are speaking in apocalyptic terms about the labor shortage they’re still facing. Behind closed doors, they bluntly acknowledge that countless new projects won’t get off the ground unless they hire workers who are in the country illegally. In a survey conducted this September by another trade group, 77 percent of construction firms with job openings, and 74 percent of those in Texas, reported that they were struggling to fill them.
The obvious economic solution for a tight labor market is to raise wages. But here some in the construction industry are hobbled by long-entrenched attitudes. Since at least the eighties, when Ronald Reagan led a crackdown on unions, firms have become addicted to cheap undocumented labor. Blue-collar wages had, for decades, failed to keep up with inflation, though that trend started to shift in 2020.
But the industry also faces a labor-force problem it cannot address quickly simply by raising pay. For two decades, the number of U.S.-born workers entering the construction trade has nosedived. Even if tomorrow all companies raised wages high enough to lure Texans away from their laptop jobs, it could take years of training to condition these newcomers to the rigors of building.
Cutting off the supply of undocumented workers, then, would be like cutting off the supply of concrete and lumber. Far fewer homes and businesses would be built in the next few decades. It would push up the prices paid by those who buy homes and office buildings. So an inviolable relationship has developed between new construction and migrants: If you build, they will come.
Whenever Texas politicians threaten to pass laws that would make it harder for businesses to employ undocumented workers, phones in the Capitol start ringing. Stuck with the need to show their base that they’re cracking down on migrants, politicians, including Abbott, have instead found a middle ground: They keep up their bombast regarding the border, but they avoid stringing any razor wire between undocumented immigrants and jobs in the state’s interior.
Today, Texas is home to some 1.6 million undocumented immigrants, according to a Pew Research Center study of 2022 census data. No industry in the state employs a greater number of unauthorized workers than construction, the nonpartisan Migration Policy Institute found. Since 2000, Texas’s population has grown by around 10 million, with many new arrivals chasing the “Texas Miracle”—a fast-growing economy that’s the envy of other states. Construction workers lacking legal status have laid the foundations for this miracle. They erected the work camps housing pipe fitters and roughnecks out in the oil fields. They rebuilt Houston after Hurricane Harvey. And they built thousands of apartment complexes and homes, helping Texas avoid the worst of the affordable-housing shortage that is crippling other states.”
Why Texas Secretly Loves Illegal Immigration
Texas politicians have no interest in actually solving the border crisis, which would require devastating the state's economy.
www.texasmonthly.com
“But arguably the most important factor—one too rarely considered—is the interplay of supply and demand. In 2021, as the pandemic began to ease, “We’re Hiring” signs started to appear in the windows of businesses across the U.S. Acute labor shortages hobbled entire industries, interrupting supply chains and fueling inflation. In response, a record number of workers crossed the southern border.
Many industries have slowly recovered from the COVID-era labor crisis. Economists generally agree that the surge in immigration played a huge role in that recovery. But across the country, employers still say they can’t fill vacancies, even as some have increased wages to varying degrees. “America is facing a worker shortage crisis: There are too many open jobs without people to fill them,” the U.S. Chamber of Commerce warned in September. According to the chamber, Texas has just eighty workers for every hundred open jobs.
The deficit in construction is historic, by some measures. Associated Builders and Contractors, a trade association, reported that in 2022 the industry averaged more job openings per month than it had ever recorded. Texas building executives are speaking in apocalyptic terms about the labor shortage they’re still facing. Behind closed doors, they bluntly acknowledge that countless new projects won’t get off the ground unless they hire workers who are in the country illegally. In a survey conducted this September by another trade group, 77 percent of construction firms with job openings, and 74 percent of those in Texas, reported that they were struggling to fill them.
The obvious economic solution for a tight labor market is to raise wages. But here some in the construction industry are hobbled by long-entrenched attitudes. Since at least the eighties, when Ronald Reagan led a crackdown on unions, firms have become addicted to cheap undocumented labor. Blue-collar wages had, for decades, failed to keep up with inflation, though that trend started to shift in 2020.
But the industry also faces a labor-force problem it cannot address quickly simply by raising pay. For two decades, the number of U.S.-born workers entering the construction trade has nosedived. Even if tomorrow all companies raised wages high enough to lure Texans away from their laptop jobs, it could take years of training to condition these newcomers to the rigors of building.
Cutting off the supply of undocumented workers, then, would be like cutting off the supply of concrete and lumber. Far fewer homes and businesses would be built in the next few decades. It would push up the prices paid by those who buy homes and office buildings. So an inviolable relationship has developed between new construction and migrants: If you build, they will come.
Whenever Texas politicians threaten to pass laws that would make it harder for businesses to employ undocumented workers, phones in the Capitol start ringing. Stuck with the need to show their base that they’re cracking down on migrants, politicians, including Abbott, have instead found a middle ground: They keep up their bombast regarding the border, but they avoid stringing any razor wire between undocumented immigrants and jobs in the state’s interior.
Today, Texas is home to some 1.6 million undocumented immigrants, according to a Pew Research Center study of 2022 census data. No industry in the state employs a greater number of unauthorized workers than construction, the nonpartisan Migration Policy Institute found. Since 2000, Texas’s population has grown by around 10 million, with many new arrivals chasing the “Texas Miracle”—a fast-growing economy that’s the envy of other states. Construction workers lacking legal status have laid the foundations for this miracle. They erected the work camps housing pipe fitters and roughnecks out in the oil fields. They rebuilt Houston after Hurricane Harvey. And they built thousands of apartment complexes and homes, helping Texas avoid the worst of the affordable-housing shortage that is crippling other states.”
