Agriculture in the North America Traditionally has had an advantage, which was to hire labor from Mexico at very low prices. According to the national Agricultural Worker Survey (NAWS), approximately 70 percent of the farm workers in the United States are Mexico-born. All kinds of agricultural farms in the US have enjoyed an extended period of farm labors with low wages. However, new data tells that involvement of the Mexican labors in the US is decreasing and in the upcoming years, US farms will have to offer higher wages to the labors.
As they can have good incomes from other sectors, they prefer to get migrated into those sectors than the agriculture. Mexico’s per-capita income now exceeds $15,000 per year. Growth in the Mexico’s non-agricultural employment began before the recession and still persists. It is expected that the Mexican workforce will continue moving out of agriculture with the increasing opportunities of non-agricultural sectors.
Solution of the issue:
First solution is to seek workers from other countries with comparatively lower reservation wages. However, the situation of the US-Mexico is unique because two countries have vastly different levels of income and they surprisingly share a common border. The countries in the Central America are small compared to Mexico and they are changing. Importing labor into the US from more distant countries does not appear plausible.
Another effective solution is to invest in labor-saving technologies and transition away from labor-intensive crops. Under this scenario, the US farms will change their labor-management practices; which means they will hire fewer workers at higher wages. Rising farm wages creates and incentive for farmers to make necessary investments to raise farmworker productivity.