The most important jobs chart of the year

Zero Hedge blog has posted a jobs chart should shock every American and alter the debate over illegal immigration in favor of the restrictionists.

After the Fed admitted over a year ago that the US unemployment rate (which in 2012 was supposed to be arate hike "threshold" once it hit 6.5% and is now at 5.1%) has become irrelevant in a country where a record 94 million people have left the labor force, and with the Fed poised to hike rates even though US hourly wages have not only not increased for the past 7 years, but for the vast majority of the labor force continue to decline, some have asked - is there any labor-related chart that matters any more?

The answer: a resounding yes, only it is none of the conventional charts that algos and sometimes humans look at.

The one chart that matters more than ever,has little to nothing to do with the Fed's monetary policy, but everything to do with the November 2016 presidential elections in which the topic of immigration, both legal and illegal, is shaping up to be the most rancorous, contentious and divisive.

The chart is the following, showing the cumulative addition of foreign-born and native-born workers added to US payrolls according to the BLS since December 2007, i.e., since the start of the recession/Second Great Depression.

The chart is especially important because what it shows for just the month of August will be enough to provide the Trump - and every other - campaign with enough soundbites and pivot points to last it for weeks on end: namely, that in August a whopping 698,000 native-born Americans lost their job. This drop was offset by 204,000 foreign-born Americans, who got a job in the month of August.

But the punchline: since December 2007, according to the Household Survey, only 790,000 native born American jobs have been added. Contrast that with the 2.1 million foreign-born Americans who have found a job over the same time period...

In nearly 8 years, less than 800,000 jobs have been created for native born Americans? And 700,000 native born Americans lost their jobs in August?

Is it an accident that wages have been stagnant over the last 8 years? I don't think so at all. I think it reflects the incontrovertible fact that foreign born workers will work for less than native born workers, and that the more American citizens you remove from the workforce either through layoffs or discouraged workers, downward pressure on wages will continue.

There is no law that says American companies have to hire native born workers ahead of foreign born workers. But with 94 million people out of the workforce, the battle cry of the open borders crowd - "They're only doing the work native born Americans won't do" - rings hollow indeed.


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