WASHINGTON, DC – On March 18, the Joint Economic Committee held a hearing entitled “Keeping Our Promises: Labor Inflows, Maintaining Competitiveness, and Supporting an Aging Population,” focused on labor flows as the nation faces an aging population, stagnant fertility rates, and the urgent need to rejuvenate the American workforce. Members engaged with witnesses on developing smarter immigration policies to support the United States economy, address labor shortfalls across vital industries, and assist in bringing down the nations debt.

“We have to deal with the reality of our changing demographics and stagnant population growth,” said Chairman David Schweikert (AZ-01). “Today, the population of retirees is booming while that of prime working aged adults is flat. This is not sustainable and threatens our economic security. This hearing will give us an opportunity to hear from experts on the need for reforms to ensure we are attracting, retaining and facilitating a robust workforce for our future.”

Debt is increasing rapidly and now dwarfs Gross Domestic Product (GDP) in the U.S. High-skilled immigration, particularly in underserved or bottlenecked industries, may help alleviate this challenge by inspiring more innovation and greater economic growth. However, the framework currently used in the U.S. distributes visas randomly or by order of application rather than by merit. Further, the global pool of elite talent is finite, and other countries, including many American adversaries, are also attempting to attract high-skilled labor. 

The hearing addressed the economic impact of labor inflows, including that of high-skilled immigration.

Witnesses included Dr. Luke Pardue, Policy Director, The Aspen Institute Economic Strategy Group; Mr. Daniel Di Martino, Fellow, Manhattan Institute; Dr. Douglas Holtz-Eakin, President, American Action Forum; and Mr. Jeremy Neufeld, Director of Immigration Policy, Institute for Progress.

In his opening remarks, Chairman Schweikert acknowledged ongoing efforts by the Joint Economic Committee to develop a “unified theory of economic growth,” focusing on factors like regulatory reform, technology adoption, and efficiency. He emphasized that a key area of bipartisan agreement is the challenge posed by slowing population growth and workforce skill shortages.

Chairman Schweikert highlighted concerning demographic trends, including near-zero population growth, a stagnant number of young people entering the workforce, and a rapidly growing retirement-age population. He noted that declining fertility rates are compounding these issues, raising urgent questions about how immigration and talent policies can support future economic growth.

He concluded by stressing the importance of understanding these demographic realities and expressed interest in exploring solutions with the witnesses before turning to the next speaker.

Following other Member questions of the witnesses, Chairman Schweikert led the discussion by questioning whether the current H-1B visa system suppresses wages due to its employer-sponsored structure and lack of worker mobility. He explored whether a more portable system, combined with a points-based, skills-focused immigration model like those used in countries such as Canada or Australia, would better support economic growth, and address rising debt.

Dr. Luke Pardue responded that portability can improve productivity and wages by allowing better matches between workers and employers, though he cautioned that designing a points-based system requires care to avoid unintended consequences.

Daniel Di Martino agreed portability is beneficial and suggested fixing inefficiencies in the current system, especially delays in permanent residency, could improve outcomes. He supported replacing the H-1B lottery with a wage-based ranking system and emphasized prioritizing younger, high-skilled workers who contribute longer to the economy.

Dr. Douglas Holtz-Eakin emphasized the importance of stable, legislated immigration policy and supported expanding skill-based immigration. He noted that reforms could start with improving H-1B but should aim broader to enhance economic growth and productivity.

Jeremy Neufeld highlighted lessons from other countries, noting that purely points-based systems can struggle without employer involvement. He suggested a hybrid model, where applicants receive additional points for having job offers, improves employment outcomes and integration.

The discussion also addressed broader economic impacts. Witnesses noted that high-skilled immigration boosts productivity and long-term wage growth, though it can create short-term fiscal pressures for state and local governments due to increased demand for services. Mr. Di Martino added that high-skilled immigrants tend to be net fiscal contributors, while lower-skilled immigration presents more challenges.

Chairman Schweikert concluded by emphasizing that talent-based immigration reform is central to addressing U.S. economic growth and debt challenges, arguing it is a “cornerstone” of a broader strategy to strengthen productivity, wages, and long-term fiscal stability

Rep. Lloyd Smucker (PA-11) focused on workforce shortages and economic growth, noting that businesses struggle to find workers across all skill levels. He argued that stronger economic growth is essential to addressing the national debt and asked whether increasing the labor force through immigration could help.

Dr. Holtz-Eakin agreed, explaining that slow population growth and an aging workforce are key reasons for weaker long-term economic growth. He said immigration boosts both the number of workers and productivity, especially if the U.S. better targets skilled immigrants.

Rep. Smucker then pivoted to a tension he’s observing in the current economy: despite solid GDP growth, job growth hasn’t kept pace as expected. He floated the idea AI-driven productivity gains might be part of the explanation and asked whether AI could reduce the need for as much immigration.

Dr. Pardue noted that recent economic growth has been driven by higher productivity despite a slower job market. While AI may increase productivity, he emphasized it will not replace the need for workers but instead shift demand toward new skills.

Rep. Victoria Spartz (IN-05) raised concerns about immigration and fiscal sustainability, arguing the system has shifted toward supporting welfare rather than work. She emphasized the need to attract hardworking, skilled immigrants while adapting to labor market changes driven by AI.

Mr. Di Martino responded that while immigrants overall can benefit the economy, many still impose fiscal costs due to access to programs like Medicaid. He suggested reforms such as limiting benefits for non-citizens and shifting toward a more merit- or market-based immigration system, where employers help select workers.

The witnesses noted that immigration policy should be more flexible and responsive to labor market needs, particularly as AI reshapes skill demands. Dr. Holtz-Eakin added that the U.S. must compete globally for top talent, especially in AI, while also noting that entitlement program challenges stem from structural issues, not immigration.

Chairman Schweikert wrapped up the hearing stating that “to stabilize U.S. debt while expanding economic growth and opportunity. But here’s the reality: none of the math works unless we fix immigration—especially when it comes to talent. It’s not a side issue; it’s foundational. If we want technology adoption, smarter processes, and effective deregulation to actually deliver results, we need the human capital to power it. That means thinking about this as one unified economic strategy, not a set of disconnected policies.”

Visit here to view the full hearing.

###