That headline is one counterintuitive implication of Drum Major Institute's updated "Principles for an Immigration Policy to Strengthen and Expand the American Middle Class: 2007 Edition." This is hardly rocket science-- even if it goes against the conventional wisdom -- but OF COURSE employers are increasing the hiring of undocumented immigrants: they work cheap, they can't enforce labor rights, and if they cause trouble, they can be deported.
The less that immigrant workers are paid, the more native workers wages are under threat. And higher wages for them mean more goods bought and a stronger local economy.
A lot of people see undocumented immigrants in sweatshops and get the causality wrong-- they think immigrants cause sweatshops, rather than tolerance for sweatshops by the government helping to breed the recruitment of undocumented immigrants.
But go read the DMI report-- it's a corrective to the Lou Dobbs style "populism" that thinks some native workers can win by bashing even poorer immigrant workers. In fact, the best way for all employees to win is to work together to eliminate sweatshops across the economy, enforce the minimum wage and other appropriate labor laws, and encourage a rising tide of wages to lift all worker boats.