That said, I would assume that short term increased supply would lead to a tighter job market.
Sure that seems unlikely, but when millions of people are willing to become undocumented immigrants, it’s likely a more open policy would see dramatically larger influxes. Especially in response to local events like civil wars. Really, just raising the caps by say 10% every year gets the same result without the chaos.
Yeah, I was thinking the same thing when I was writing the above, but didn't want to get too into the weeds on what I wanted to be a short answer to the original question (I have a habit of going on...).
Like many things, an immediate large change has repercussions that are detrimental and can possibly be alleviated with a measured change over time.
That's how you acclimate fish to the temperature in a new aquarium. That said, it's also how they tell you to boil a frog...
There are studies showing a slight decrease in wages, studies showing a slight increase in wages, and studies showing nothing conclusive. There's basically not enough scientific consensus to use for decision making, which means it's more a moral choice than an economic one.
This is from May 2020:
https://www.theguardian.com/business/2020/may/19/quarantine-...
Basically, the UK fruit industry was worried that it might not get "enough workers" because of COVID restrictions.
Which of course is brazen corporate double-speak. There are workers in the UK, like tens of millions of them. It's just that they're not willing to work for miserly wages. So there's only two options: (1) increase local wages, or (2) import cheap foreigners. Business obviously prefer the latter. ("But but but strawberry prices would increase" isn't a good argument - agriculture is heavily subsidized anyways.)
Somehow businesses forget how supply and demand works when it comes to labor, and "journalists" aren't, so much as they just transcribe whatever falls out of rich peoples' mouths and call it 'balance'.
We'll be back to feudalism in a couple generations.