Chairman Alan Greenspan of the Federal Reserve has noted repeatedly in Congressional testimony that tight labor markets threaten the continued growth of the economy and could result in inflation. Beige Book of Current Economic Conditions reports Many Districts noted the lack of available workers continued to hamper overall economic growth. Companies report difficulties retaining permanent staff and hiring replacements, curtailing expansion plans, and many small businesses are struggling to survive without enough employees. The demographics say no. The Bureau of Labor Statistics has reported that by 2008 we will have 5 million more jobs than people in the workforce.
Unemployment is below full employment rates.
This essentially means that everyone who is employable is employed. Employers are doing the right things. Employers are raising wages, offering improved benefits, signing bonuses and relocation pay, but they still cannot find enough employees. A nonimmigrant visa category does not exist for employers who need workers for more than one year or for employers who have permanent or long-term jobs, for example in the health care, retail, hospitality and other industries. As a result, employers often are forced to send their work overseas, cut back, or close their doors.