Trump drives a major wage increase by restricting illegal immigration

The recent immigration restrictions imposed by President Donald Trump are generating wage increases in several labor sectors, according to even economists critical of his administration. The measure, which ends the federal welcome to millions of illegal migrants, is raising the wages of American workers in low-income occupations, although it has also caused tensions in some industries that relied on foreign labor. Wendy Edelberg, an economist at the Brookings Institution think tank, told Bloomberg on July 11 that "we'll see stronger wage growth in some occupations," especially in the agricultural sector and in home health care. Although she acknowledges that the departure of migrant workers will have "modest economic effects" on the overall size of the economy, she emphasizes that the immediate repercussions are more emotional and practical for companies facing staff shortages.

An illustrative case is that of meat giant JBS, which signed a new collective agreement on June 6. The company will grant wage increases, paid sick days, and pensions to 26,000 workers in the United States. "When I heard about the pension, I got emotional," said Thelma Cruz, an employee in Iowa. "My husband also works here, and we'll both receive pensions when we retire." Since Trump began his second term after the 2024 elections, stricter immigration policies have begun to transform the American labor market. Treasury Secretary Scott Bessent stated in June that "real wages for hourly workers have increased by almost 2% in five months, the strongest growth in 60 years." Meanwhile, the Department of Labor highlighted that "U.S.-born workers have accounted for ALL new hires since January."

These changes have strengthened the "American Workers First" narrative that drove Trump's victory and could significantly influence the 2026 legislative elections. Nevertheless, the measures continue to generate controversy for leftist sectors. Edelberg and other progressive economists argue that the restrictions may harm the competitiveness and diversity of the economy in the long term. However, a growing number of voices within the establishment are also calling for a reduction in illegal migration, suggesting that this may foster prosperity, innovation, and greater equity for local workers. Meanwhile, millions of Americans are beginning to see tangible improvements in their working conditions, in an unexpected turn of an immigration policy that many experts thought would only bring tensions.