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It’s puzzling that President Obama keeps returning to the combustible subject of immigration. You’d think that, with big financial reform and energy/climate bills hanging fire, he’d have his hands full. And with unemployment stuck at nearly 10 percent, it’s not exactly a propitious time for a national debate over legalizing millions of immigrants who are living and working illegally in this country.

So what gives? Maybe it’s simply that Obama is the son of an immigrant father. Republicans, of course, have a more cynical explanation. They say Obama is throwing a bone to Latino advocacy groups disappointed by his failure to redeem a campaign pledge to move comprehensive immigration reform. Facing a very difficult midterm election, Democrats can’t afford to give Latino voters reasons to stay home.

After the Justice Department sued Arizona this week over a controversial immigration law, the Wall Street Journal accused Obama of being “more focused on branding the GOP anti-immigrant than he is on signing a reform bill.”

It’s true that immigration has opened up a fault line between Republican restrictionists and moderates like former President Bush, who won a substantial chunk of the Latino vote in 2000 and 2004. But give Obama some credit: He’s consistently ignored advice from Washington wise men to postpone politically risky undertakings – like health care and the climate bill – until the economy turns up again. His determination to take on the nation’s biggest problems, rather than “kick the can down the road,” is admirable, if impolitic.

But while Obama may be ready to lead, it’s not clear the public is ready to follow. A new Gallup poll finds Americans closely divided on immigration reform. By a 50-45 margin, they favor halting the flow of illegal immigrants over “developing a plan to deal with immigrants now in the U.S. illegally.” The survey also found that immigration is far from uppermost in voters’ list of concerns.

In a major speech on immigration last week at American University, Obama once again showed a fine instinct for the middle ground. He chided restrictionists who imagine that all 11 million illegal immigrants can simply be rounded up and sent home. But he also criticized immigrant advocates who call for a blanket amnesty for all people here illegally. “It would suggest to those thinking about coming here illegally that there will be no repercussions for such a decision. And this could lead to a surge in more illegal immigration. And it would also ignore the millions of people around the world who are waiting in line to come here legally,” Obama said. And he added: “Ultimately, our nation, like all nations, has the right and obligation to control its borders and set laws for residency and citizenship. And no matter how decent they are, no matter their reasons, the 11 million who broke these laws should be held accountable.”

That kind of moral clarity has been missing from liberal discourse on immigration, and it gives Obama a chance to be heard by Americans worried that the flow of undocumented immigrants across our southern border have eroded U.S. sovereignty and made a mockery of our laws. Once that has been stipulated, it’s easier to engage people in rational discussion about a compassionate way to deal with the millions of illegal immigrants working in our communities.

So far, so good. But Obama’s speech contained two large blind spots. One has to do with developing our capacity to enforce immigration laws in the workplace. After all, what attracts undocumented immigrants is the opportunity to work in the U.S. Until we have reliable systems for establishing the identity and legal status of workers, it will be difficult to hold employers accountable for hiring those who came here illegally.

Second, and even more important, the president seemed oblivious to the fundamental mismatch between U.S. immigration laws and our economy. America needs to import more skilled labor to plug gaps for scientists, engineers and technicians throughout our high-tech, high-wage economy. Our immigration system, however, gives priority not to skills, but to family unification.

Rather than simply urge Congress to take up comprehensive immigration reform where it left off back in 2006, the administration needs to think more creatively about modernizing immigration policy, and aligning it more closely with the requirements of U.S. economic innovation and competitiveness. I’ve offered some ideas along these lines, but more fundamental change is needed.

President Obama’s instincts on immigration are sound, but he needs to bring our policies and laws up-to-date in addition to finding a fair and compassionate way of dealing with people who came here illegally to find a better life.