To be sure, the president inherited an immigration system that allows in a million immigrants annually. This is the so-called green card that allows immigrants to live permanently in the United States and apply for citizenship after five years. As discussed above, since the Great Recession began 4.3 million new green cards were issued from 2008 to 2011.5 While data are not yet available, it seems very likely that roughly one million additional green cards were issued in fiscal year 2012, which ended in September of this year. In addition, several hundred thousand guest workers also have been allowed into the country each year. Neither President Obama nor Congress has been willing to modify this system.
During the Bush administration a large share of employment growth also went to immigrants — 44 percent. In the fourth quarter of 2008 there were 4.38 million more natives working than in the first quarter of 2001, when President George W. Bush took office. Among immigrants, the number working increased by 3.48 million. (See Table 1.) However, employment peaked by the fourth quarter of 2008 and was headed down when President Bush left office.
There is no question that President Obama inherited a labor market that was deteriorating. (See Table 1.) But he has taken a number of steps that have increased job competition for native-born workers. He has offered work authorization to an estimated two million illegal immigrants who arrived in the country before age 16 — nearly 200,000 of whom have applied so far.6 When auditing employers who hire illegal workers, as a matter of policy the administration has not detained the illegal workers, allowing them to take new jobs. The administration also called on the Supreme Court in 2010 to strike down Arizona’s law requiring employers to verify the legal status of new workers.7 Most importantly, he has proposed no reduction in legal immigration levels.
There is a long-standing debate among economists about whether immigration reduces labor market opportunities for the native-born. There is good research showing that immigration displaces natives from the labor market.8 But there is not a consensus. What we can say is that there are currently an enormous number of working-age, adult (18 to 65) native-born Americans not working — 50.8 million. If we include naturalized citizens the number is 54.7 million. Equally important, the share of working-age natives holding a job was declining even before the recession, which has nothing to do with the Obama administration. As immigration increased through the last decade, the employment rate of natives fell. Just 69 percent of adult natives (18 to 65) held a job in the third quarter of this year, compared to 74 percent at the end of 2007, before the recession. Back in the third quarter of 2000 it was 76 percent. The last decade was a period of high immigration and declining employment rates for natives.
It is clear that a large share of employment growth was going to immigrants long before the president took office. What the president has failed to do is propose any reduction in immigration levels and he has embraced policies and positions that made the situation worse. Immigration levels are a discretionary policy, which can be changed. Both the president and Congress share the blame or credit, depending on one’s point of view, for the decision to keep legal immigration at very high levels despite the dismal state of the job market.