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President Donald Trump's Economic Report recommended a range of policies meant to add workers, assuring that the combination of policy changes and complementary conditions can attract 1.7 million more workers and propel growth by one-tenth percentage point yearly over the next decade.

However, the report eliminated immigration from the equation since the president's immigration initiative will generate a decrease in labor supply and the economy's long-term growth possibilities.

CNBC reported that the recent years have seen the decrease in the US labor force participation with demography as one of the reasons for the decline.The past decade saw the members of the baby boom generation hit the age of 62, the age where workers can retire and accept Social Security benefits.

Displacement via technology and foreign trade and the influx of reliance on disability payments by people with health concerns were the other factors that economists credited for the said labor force participation decline.

The report mentioned that policies which are geared towards increasing the labor force participation rate will yield an impact on long-run economic progress.At present, however, immigration was credited as the biggest source of increased labor supply.


The National Academy of Science once estimated that immigrant workers were the catalysts behind the $2 trillion of America's $18 trillion economy, while Pew Research Center believed that the mix of new and old immigrants will generate the growth in the working-age population.

Former Council of Economic Advisers chairman Jason Furman cautioned that decreasing legal immigration in half will decrease economic progress by more than the recent tax cuts will increase, but present chairman Kevin Hassett refuted that increasing the proportion of higher-skilled immigrants will negate the economic efforts made by decreasing the number of additional immigrants.