Core Viewpoint - Morgan Stanley indicates that a reduction in immigration will impact the U.S. labor force participation rate, potentially leading to a "chilling effect" on the participation rate of foreign-born individuals [1] Group 1: Labor Market Impact - The reduction in immigration is expected to lead to decreased working hours and may affect overall labor force participation [1] - If the average overall participation rate declines, the employment growth breakeven needed to maintain a stable unemployment rate will be lower [1] Group 2: Economic Growth Projections - Analysts estimate that the potential growth rate of the U.S. economy will decrease from approximately 2.5%-2.7% during 2022-2023 to 2.1% [1]

Core Insights - The report indicates that tariff increases will stimulate job expansion in the U.S. manufacturing sector, but this comes at the expense of job losses in the service and agricultural sectors [1] - Due to a decline in real wages, the labor force participation rate is expected to decrease, leading to an overall decline in employment rates [1] - By 2028, it is projected that real income in the U.S. will decrease by approximately 1% [1]

Group 1 - The labor force participation rate in the U.S. for April is reported at 62.6%, which exceeds the expected rate of 62.5% and matches the previous value of 62.5% [1]