Biden's new immigration order could tighten labor markets, but ease supply chain bottlenecks

• President Biden's new executive order tightening asylum limits at the U.S.-Mexico border could mildly dent growth in the U.S. labor market, but may also help unclog supply chain bottlenecks at the border.
• Immigrants helped buoy the U.S. workforce throughout the pandemic, supercharging America's economic recovery.
• A migration slowdown could threaten that labor market strength, economists say.
• But limiting migrant crossings could also clear up shipping bottlenecks at the U.S.-Mexico border and potentially ease inflationary pressures.

President Joe Biden's new executive order tightening asylum limits at the U.S.-Mexico border could have the double-edged economic effect of tightening labor markets, while also easing supply chain bottlenecks between the two countries, economists and trade analysts say.

The measure will temporarily bar undocumented immigrants who enter the U.S. at the Southern border from obtaining asylum, save for in certain cases, and make it easier for Border Patrol agents to deport these people quickly.

The restrictions are triggered when the average daily number of migrant encounters exceeds 2,500 over the course of a week. The action would be discontinued two weeks after the government determined that the daily average of migrant encounters has fallen below 1,500 for seven consecutive days.

Currently, the average number of encounters with migrants is roughly 4,000 per day, Department of Homeland Security officials told NBC News.

As a result, a senior administration official told reporters the temporary ban will be "in effect immediately."

The temporary shutdown would not block trade or travel, however. And it would still allow immigrants who enter the United States legally to apply for and receive