The IMF managing director said abundant labor from cross-border migration reduces wages paid to American employees.
While noting this provides an overall economic advantage by keeping wages from rising too quickly, she acknowledged not all border crossers positively impact the economy.
“Not everybody who crosses the border adds positively to the economy,” International Monetary Fund managing director Kristalina Georgieva said.
“But that labor supply also gave to the United States [overall economy an] advantage: Wages are not pushing up, because there is no strong pressure because of lack of labor,” Georgieva said.
Wage growth, excluding inflation, has slowed in the U.S.
Inflation also remains an issue partly due to migration driving up housing prices as Biden has welcomed millions of migrants.
The IMF director stated inflation is decreasing but not gone.
“Inflation is down but not gone,” Georgieva said.
The discussion touched on migration’s mixed effects, including lowering wage pressures but also potentially fueling inflation through increased housing costs.
