The labor market has continued to thrive, with some economists attributing the robustness of the job market to rising immigration levels. RSM Chief Economist Joe Brusuelas joins Market Domination Overtime to discuss why he believes "immigration's the explanation."

Brusuelas notes that the "social and political polarization" surrounding immigration has previously deterred economists from discussing its influence on the job market. However, he describes the influx of both legal and undocumented workers, which has led to the sustainable growth in the labor market being reflected in today's data as "undeniable."

With the US presidential election edging closer with every day, Brusuelas states there could be a slight downturn. Nonetheless, he notes that with sectors such as hospitality, manufacturing, and other industries in need of workers, labor markets could see immigrant workers "bleed into those areas" as well. Brusuelas emphasizes the need for "a more adult, rational conversation" about immigration policy and "the vital contribution" immigrants play in the labor force.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

Editor's note: This article was written by Angel Smith

Video Transcript

[AUDIO LOGO]

JULIE HYMAN: The labor force continued to show strength without overheating the economy. That has been confounding many economists until really more recently. The answer may lie in immigration. For more, we've got RSM Chief Economist Joe Brusuelas. Joe, it's great to have you here.

- Good to see you, guys.

JULIE HYMAN: So this is something we touched upon the last time you were here. But I don't think it's gotten enough attention, because there is this question of, how can we keep seeing the kinds of jobs gains that we are seeing month over month with the household survey showing different numbers and inflation not accelerating?

JOE BRUSUELAS: Immigration is the explanation. Essentially, if you look at the household survey it's just not picking up, the contribution of both legal and undocumented workers to the overall labor supply, right? Where I live in Texas, it was really impossible to get anything done in construction. You couldn't get a seat at a restaurant, right? The restaurants would be open, but they didn't have enough workers, right, to serve the tables.

All of a sudden, it turned on a dime in about six months, and it's pretty clear what it was, right. It's the role of immigration, which traditionally we economists understand this. It's just that the social and political polarization around this kept us from really talking about it. But now it's undeniable.