US President Donald Trump in order to protect the rights of Americans’ to get jobs after lockdown is lifted and to prevent the Coronavirus transmission, announced that he is planning to suspend immigration to the country.
Trump tweeted about restraining the attack of the “Invisible Enemy” and said, “By pausing immigration, we will help put unemployed Americans first in line for jobs as America reopens. It would be wrong and unjust for Americans laid off by the virus to be replaced with new immigrant labor flown in from abroad.”
In light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens, I will be signing an Executive Order to temporarily suspend immigration into the United States!
— Donald J. Trump (@realDonaldTrump) April 21, 2020
More than one million immigrants arrive in America each year, according to Pew Research Center, though the number has fallen in recent years. Such a decision rocked not only the immigrant workers, but also various sectors, and here is how each sector of the US economy is going to get affected.
Effect on Technology Sector:
Trump’s immigration ban can delve a heavy blow to the Technology Sector. A large number of migrant workers go to the US to get employed in Silicon Valley, particularly from Asia. Majority of these immigrants hail from Mexico, China, and India.
In 2017, most of the new foreign workforce comprised of immigrants from India, followed by Mexico, China, and Cuba. With the declaration of Trump’s immigration ban, this supply of talent in the tech sector would soon be cut off, especially in the IT sector.
Shaun Rein, Managing Director of China Market Research Group, believes that this immigration ban will hurt the US tech companies, like Google, Facebook, Cisco’s ability to recruit the talent necessary to keep them competitive and develop new innovations. This talent could further be channelized to the immigrants’ home countries and facilitate in building the next round of innovation powerhouses.
He believes the new talented workforce would seek jobs in other global tech hubs like Seoul, Shenzhen, and Bangalore, where they would push the innovation in hardware, software, and semiconductors.
Apple Chief Executive Tim Cook said, “Apple would not exist without immigration.” His claim was supported by other tech giants’ heads, including Amazon founder Jeff Bezos.
Effect on Trade and Economy:
Experts and economists have shown concern about the impact of Trump’s move on the US economy. Immigration expert, Michael Clemens said that according to economic evidence, the immigration ban is likely to harm the economy.
He said that during the Great Depression, America had banned and deported a large number of Mexican immigrants. As a result, this decision made native unemployment worse in the Depression because immigrants form the backbone of various industries that employ Americans. When job opportunities opened up, some Americans acquired them, but the majority of Americans lost their jobs with the immigrant-dependent businesses shutting down.
China and India provide a vast number of workforce in various business sectors, and restricted movement to the States could cripple trade and industry adversely, posing a grave threat to the economy.
Last year, immigrants contributed a total of 813.7 million dollars as taxes in Texas, and possessed a local spending capacity of 2.5 billion dollars. They served as major economic contributors, whom America would be losing out.
Impact on Tourism Industry:
Trump’s previous ban on immigrants from Iran, Libya, Somalia, Syria, Yemen, and North Korea had given out a signal that foreigners are not welcome in America. This led to a significant decline of international tourists, and consequently, the share of international travel market fell from 13.7 per cent in 2015 to 11.7 per cent in 2018– an approximate loss of 59.4 billion dollars in traveler spending.
The US Travel Association estimates that this amount of lost capital could have supported 120,000 American jobs.
Impact on Educational Sector:
US recorded the highest number of international students in the academic year 2018-19, with the students contributing 44.7 billion dollars to the American economy. The immigration ban could hit the higher education sector very hard.
Experts believe that Trump’s plans could derail efforts to restart the economy by alienating international students, who serve as a bonus for American universities and foreign investors. The steady current of Nigerian students could come to a halt due to the travel ban and cost an approximate 514 million dollars loss to the US economy.
Healthcare Sector will suffer most:
Nigerians are of the most successful and highly educated immigrant groups in America. They are often employed in the healthcare sector as nurses, pharmacists, and doctors, assisting the citizens in medical emergencies and health maintenance. These immigrant groups are further recruited in science, technology, and engineering fields, which are critical in bringing advancement in healthcare.
According to the American Immigration Council, foreign-trained doctors comprise more than 25 per cent of all physicians in America, forming an essential part in the US healthcare sector.
The extended effects of Trump’s decision would surface with upcoming announcements and subsequent passage of time.