Unemployment in AZ going down because of employer sanctions

In Sunday’s print Republic, page D-4 in the business section there are a lot of stats. They show non-farm jobs in AZ have been going slightly down for the past 16 months. Unemployment rate in AZ was headed up until Jan ’08 at which time it turned down. So, the number of jobs is down, but the unemployment rate is also down? Employer sanctions explains this. The illegal immigrants who held jobs are being replaced by legal workers who lost jobs or were unemployed.


Comments

  1. Kralmajales says

    That is a bit of a stretch, dont you think?

    I bet if you talked to the Chamber of Commerce some…or at all…you’d find that the employer sanctions bill has hurt business and has made it more difficult to hire workers. But why take their word for it?

  2. Ken Jacobs says

    Once more; source, attribution?

  3. More difficult to hire illegal workers? Likely… Hire legal workers? Nope, not any more difficult at all.

  4. Frank Soto says

    Kral said: “[employer sanctions] has made it more difficult to hire workers”

    Tim said: “Hire legal workers? Nope, not any more difficult at all.”

    I don’t know the exact reasons for Kral’s statement, but I would guess that it is correct. When there are less people in the employment market, demand increases. When demand increases, the people desiring the item have to pay more (you remember the Demand/Surplus chart you learned in econ in high school, right?). Employers who used be able to hire two “illegals” can now only hire one. Further, rational employees should know this is the case, and be able to demand hire wages. So, strictly speaking, it has become more difficult to hire legal workers. Now, you just might now care because the employer never should have hired “illegals” in the first place. But that does not change the idea that it is probably more difficult to hire legal workers now, assuming that more difficult = more expensive.

    Employers, of course, can respond to this in at least two ways: don’t hire the legal workers, or charge more for their product.

  5. nightcrawler says

    We need to be all mindful that many people are “under-employed”. Yes, they may have a job, but it is not what they are qualified to do given work experience and education. The sanctions law did definitely have an impact in that many undocumented workers left Arizona, not the country, but the state. Now with a declining economy and rising gas prices, destination entertainment venues be they restaurants, resorts or hotels are feeling the pinch. People are now less likely to fill up for 100 bucks and throw down 15 more for a car wash. Some folks might even trim their own lawns. It is supply and demand alright, but in a much larger scale than any of us had hoped.

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