Donald Trump’s immigration and labor reform policies would force down unemployment, pressure companies to raise Americans’ wages and salaries, and even make housing cheaper for young families, according to a supposedly critical report by Moody’s Analytics now being cited by Trump’s critics, including Hillary Clinton.
“As the immigrants leave, the already-tight labor market will get tighter, pushing up labor costs as employers struggle to fill the open job positions,” the report acknowledged. “Mr. Trump’s immigration policies will thus result in … potentially severe labor shortages, and higher labor costs,” the critical report promises.
The formal unemployment rate would immediately drop by a third, from 5 percent in 2016 to 3.5 percent in 2017, the report predicts. Housing prices would drop by almost 4 percent in 2018 and 2019, says the Moody’s report.
The prediction complements Trump’s repeated populist argument on the campaign trail that large-scale immigration slashes Americans’ salaries.