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Updated: April 20-2025
Illegal crossings along the U.S.-Mexico border have declined sharply, reaching their lowest levels in years. In October 2024, U.S. Border Patrol agents apprehended 56,530 migrants, a 70% decrease from the 188,749 arrests recorded in October 2023 . This significant reduction follows the implementation of stricter asylum policies by the Biden administration and increased enforcement efforts by Mexican authorities.
The Biden administration’s executive order, issued on June 4, 2024, restricts asylum eligibility for migrants who enter the U.S. illegally. Under the new policy, asylum seekers are required to schedule interviews at designated ports of entry using the CBP One app. Since the policy’s enactment, there has been a more than 52% decrease in Border Patrol encounters .
In addition to U.S. policy changes, Mexican authorities have intensified efforts to curb northbound migration. Measures include preventing migrants from boarding trains and buses heading north and increasing deportations to southern Mexico. These actions have contributed to the overall decline in illegal crossings.
Market Impact Analysis:
The reduction in illegal border crossings may have several implications for the U.S. economy and labor market. A decrease in the influx of undocumented workers could lead to labor shortages in industries that rely heavily on migrant labor, such as agriculture, construction, and hospitality. This, in turn, may drive up wages and operational costs for businesses in these sectors.
Conversely, the decline in unauthorized entries could alleviate pressure on public services and reduce expenditures related to border enforcement and immigration processing. Additionally, improved border security may enhance investor confidence in border regions, potentially spurring economic development and investment opportunities.
Investors should monitor the evolving immigration policies and their effects on labor markets and economic activity, particularly in sectors sensitive to changes in workforce availability. Companies operating in industries dependent on migrant labor may need to adjust their strategies to mitigate potential labor shortages and increased costs. Furthermore, enhanced border security and stability could present new investment prospects in infrastructure and development projects along the U.S.-Mexico border.
Source: The Wall Street Journal
