A new Barron’s article reported several noteworthy economic trends relating to the labor market. A few major callouts consisted of the major disconnect between available workers and open positions, as well as the downward trending growth of the overall labor market, and finally the increasingly high turnover rate in industries such as construction, hospitality, and restaurants. Additionally, the immigration flow into the United States was slowed tremendously by the Trump Administration and then faced even more challenges relating to Covid-19. The consequence of these factors is a significantly reduced labor pool.
There were nearly two times as many job postings in July than available workers creating a massive labor shortage for employers to face. On an even more macro-level, although the overall population of the country is trending upward, it is misleading. If you are an employer, you should be primarily concerned with the demographic trend of those in eligible working age ranges. In fact, by 2034 older adults will make up a far greater percentage of the population than the future labor pool. Many employers are currently in the mindset that the hiring crisis they are facing is due solely to the pandemic and that it will smooth itself over if they can get by in the meantime. However, all economic trends indicate that this “short-term” problem is actually here to stay, and will have to be tackled by employers in order to remain in business.
How the Combination of Covid and Tightened Immigration Laws are Impacting the Labor Pool
Regions in Mexico and Central America began seeing improved economic development at roughly the same time as the Trump Administration increased border tensions, both factors gave citizens less of a reason to immigrate to the Unite States.
The Trump Administration also restructured immigration laws slashing a number of green card and H1-B visas further reducing the labor pool. Finally, as Covid-19 accelerated, it led to even greater immigration freezes exacerbating the net loss in immigration to the United States, which subsequently reduced the labor pool in the United States even more.
What does this mean for employers?
The impacts of the labor shortage for employers consist of reduced productivity, lossed revenue, curbed growth, opportunity cost, and in many cases the loss of a business entirely. Other consequences include a rise in wages which hurts the bottom line, hiring unqualified individuals to fill roles they are not cut out for, and an inability to staff at full capacity. The labor shortage also manifests itself in the form of a high turnover rate, due to the leverage held by the reduced labor pool and the plethora of available job opportunities at all times. All of these impacts have a significant negative effect on businesses, especially small businesses.
Your Solution to the Labor Shortage; Sponsoring EB3 Visa Workers
To date, many employers have attempted to combat the hiring crisis by improving benefits for employees, raising wages, investing in workplace culture, and trying to provide better hours for their staff. However, these solutions all include incurring greater costs while still struggling to operate at full capacity. Ultimately, this forces many small businesses to increase their selling prices which can dissuade customers from buying. In turn, it is more cost-effective for consumers to buy from larger companies that are more well-equipped to handle this crisis such as Amazon and Walmart.
The solution to this intricate problem is something that only a few employers have tapped into — EB3 category visa workers. These are skilled workers that come from other countries to work in the United States in order to fill positions that cannot be filled by domestic workers. The process of sponsoring an EB-III visa worker is relatively simple and can be done entirely online. Not only does this provide a much needed solution to the hiring crisis, but it also helps support our economy by keeping businesses afloat during these difficult times.
Simply put, hiring EB3 visa workers provides employers a brand new labor pool to tap into for their hiring needs. Additionally, green carder workers are highly skilled and educated in their field which can help to improve productivity and business growth. These workers are also highly motivated to succeed in their roles, as they have made a significant investment by immigrating to the United States. Also, green card workers are incredibly loyal. Generally speaking, they stay with their employer twice as long as domestic workers which will save employer time and energy hiring to fill more roles and dealing with turnover.
If you are an employer who is struggling to find qualified candidates for your open positions, we urge you to consider hiring
If you are an employer who is struggling to find workers, we urge you to consider sponsoring an EB3 visa worker. It is a cost effective solution that will allow you to keep your business running while also filling the much needed positions in our workforce. To begin hiring an EB3 visa worker contact us today.
How does the hiring process work for EB3 visa workers?
The hiring process for EB3 workers contains three major components, costs the employer $1,000, and takes roughly 12-18 months to complete.
Perm Labor Certification
The PERM is the first step and requires the employer to test the U.S. labor market to ensure that there are no able and willing workers available to fill the position being offered at the Prevailing Wage.
I-140 Immigrant Petition
The second step is the I-140 Immigrant Petition which is filed by the employer on behalf of the foreign worker. It essentially verifies that the immigrant meets all of the job requirements and is eligible to fill the position.
Adjustment of Status / Consular Processing
The Adjustment of Status is the final step in the process and is filed by the employer on behalf of the employee. Once approved, the employee will receive their green card in the mail. If the employee is located outside of the United States, they will need to complete consular processing in order to receive their green card.