Federal Reserve Chairman Jerome Powell has finally acknowledged what many Americans have been saying for years: the migrant crisis is driving up unemployment. Speaking after the Fed’s decision to cut the benchmark interest rate by 0.5 percentage points — a move not seen since the early days of COVID-19 — Powell pointed the finger at the massive influx of migrants for the nation’s rising jobless rate.
“If you’re having millions of people come into the labor force, and you’re only creating 100,000 jobs a month, unemployment is going to rise,” Powell said, addressing the troubling economic trend. His remarks came in response to a question about the country’s current job creation numbers, which have been lackluster at best.
Powell’s admission is a glaring indictment of the Biden administration’s handling of the southern border, where more than 9 million people have crossed since President Biden took office. And that’s not counting the estimated 1 million who have entered the country without detection. The result? An overwhelmed job market where American workers, particularly those in blue-collar fields, are competing with an endless stream of new arrivals.
While Powell was careful to couch his remarks in economic jargon, the truth is clear: unchecked immigration is not just a border issue; it’s an economic crisis that’s affecting every corner of the country. From big cities to small towns in the heartland, communities are grappling with a labor market flooded by migrants willing to work for lower wages, leaving many American workers struggling to find jobs.
Powell’s comments come as the Fed accelerated its plan to cut interest rates, a move that was initially expected to be just a 0.25 percentage point reduction. The decision to go further underscores the Fed’s growing concern about rising unemployment and slowing growth, both of which have worsened in recent months.
The U.S. unemployment rate, which began the year at 3.7%, now sits at 4.2%, according to the Department of Labor’s latest figures. Job creation has also faltered, with just 142,000 jobs added in August, well below the projected target of 162,000. July’s numbers were even worse, with a paltry 89,000 new jobs — the lowest since the pandemic.
The labor market took an additional blow when it was revealed that 818,000 fewer jobs had been created between March 2023 and 2024 than previously reported. That’s nearly a million jobs that Americans thought existed — but didn’t.
With the country’s workforce under siege by mass immigration, the Fed’s decision to cut interest rates signals that it now views unemployment as a greater threat to the economy than inflation. But for many hardworking Americans, this move may feel like too little, too late.
For years, conservative voices have warned about the economic impact of open borders, only to be dismissed by the political elites. Now, with unemployment rising and job creation slowing, even Powell is forced to admit the obvious: millions of migrants entering the labor market is putting a strain on the economy that can no longer be ignored.
As Powell himself noted, “the influx across the borders has allowed unemployment to rise.” Yet, despite this clear admission, don’t expect the Biden administration to change course anytime soon. Instead, it will likely continue to push policies that prioritize open borders over American workers, leaving it up to communities across the country to deal with the fallout.
The question now is whether this latest economic reality check will spur meaningful action to address the migrant crisis and its impact on the job market. For the sake of American workers, let’s hope the powers that be are finally paying attention.
