There’s a comforting political myth that never seems to die.
Cut immigration. Fewer people competing for jobs. Native-born workers finally catch a break. Wages rise. The labor market cleans itself up. Roll credits.
It’s a great story. Simple. Intuitive. Wrong.
And 2025 gave it a pretty public stress test. It didn’t hold up.
Here’s what actually happened after immigration was sharply reduced:
The foreign-born labor force shrank by hundreds of thousands of workers over the year. Depending on where you anchor the measurement, it was close to a million fewer people working, spending, renting, starting companies, and generally doing the unglamorous stuff that keeps an economy moving.
If the theory were right, this should have been a gift to U.S.-born workers. Less competition. More openings. Easier hiring.
Instead, unemployment among native-born workers rose year over year. Labor force participation edged down. The long-awaited “Americans rush back into jobs” moment never arrived.
That’s not spin. And it’s about as subtle as a slap.
This is the part nobody wants to linger on.
The Lump-of-Labor Fallacy, Again
The entire argument for “cut immigration to help workers” rests on the idea that jobs are a fixed resource. Like a pie. Or a pizza. Or whatever food metaphor works best on cable news that week.
Immigrants take slices. Remove immigrants. More slices for everyone else.
Economists have been pointing out the flaws in this logic since before electricity was widely available. Jobs are not static. They’re created by demand, investment, population growth, and business formation. People don’t just fill jobs. They create them indirectly by existing, consuming, and participating.
Remove a large share of working-age people and the economy doesn’t rebalance neatly. It contracts. Expansion slows. Projects get shelved. Hiring plans get “revisited.” Everyone pretends it’s temporary.
It usually isn’t.
Mainstream research all reaches the same boring conclusion: immigration tends to expand total output and has little to no negative effect on overall native employment in the long run. Distributional effects exist, but the pizza doesn’t shrink. It gets bigger.
So when immigration is cut and unemployment rises anyway, it’s not a mystery. It’s the model doing exactly what it said it would do.
The Participation Paradox
Unemployment rates get the headlines. Participation rates tell you who has checked out.
If fewer immigrants were genuinely “freeing up” jobs, native-born labor force participation should jump. People who were sidelined should come back in.
Instead, participation among U.S.-born workers slipped slightly from late 2024 to late 2025. Not a collapse. Not a surge. Just a quiet drift downward.
That’s the labor market equivalent of a shrug.
It suggests something uncomfortable: the constraint wasn’t immigrants. It was job quality, pay, skills alignment, childcare, health, geography, and a long list of structural issues that slogans don’t fix.
Reducing immigration didn’t solve those. It just reduced the number of people available to paper over them.
There’s another part of this that gets conveniently ignored.
Immigrants aren’t just workers filling open reqs. They’re a disproportionate share of new business founders, frontline healthcare workers, construction labor, food production, logistics, and care work. They also drive population growth in an aging country with declining birth rates.
The Brookings Institute estimates suggest the U.S. may have experienced net negative migration in 2025 for the first time in decades, with a measurable hit to consumer spending.
That’s not ideological analysis. That’s arithmetic.
Why TA Leaders Should Care
The CBO has been blunt about the long-term outlook: without immigration, population growth slows, the labor force eventually shrinks, and economic growth follows. Calling that “protecting American workers” is generous. It looks a lot more like managed decline with better branding.
This is where the theory collides with day-to-day reality for TA leaders.
Because while the political class argues about who “deserves” jobs, talent teams are stuck trying to fill them.
Here’s what reduced immigration actually means on the ground:
- Smaller candidate pools in already tight labor markets.
- More competition between employers for the same people, not less.
- Longer time-to-fill, higher cost-per-hire, and more pressure to lower requirements or raise pay after the req has been open for months.
- Increased reliance on automation, offshoring, or “do more with less” fantasies that usually burn out whoever’s left.
The promise was abundance. The result is constraint.
For TA, this exposes a hard truth that’s been lurking for years: hiring strategies built on the assumption of endless labor supply are brittle. When the supply tightens, the cracks show immediately.
Career sites that repel applicants. Job requirements that don’t match reality. Compensation bands set by wishful thinking. Processes designed for an employer’s convenience, not a human being’s time.
Reducing immigration doesn’t fix any of that. It amplifies it.
The Strategic Mistake Everyone Keeps Making
The core error here isn’t moral. It’s strategic.
Immigration is treated like a lever you can pull without consequences. Reduce it and expect the labor market to magically reorganize in your favor.
But labor markets don’t work that way. They adapt through slower growth, fewer starts, delayed investment, and rising pressure on the systems that remain.
For TA leaders, the lesson is uncomfortable but clear:
Stop planning as if workers are interchangeable inventory. Start planning as if labor supply is constrained, aging, and increasingly global.
That means investing in internal mobility. Rethinking job design. Expanding where and how work gets done. Paying attention to conversion, experience, and retention instead of assuming the next batch of applicants will just show up.
Because the data is already in.
The U.S. reduced immigration. Native-born workers didn’t win. Unemployment rose. Participation slipped. Hiring didn’t get easier.
People weren’t the problem.
And shrinking the workforce was never the solution.