March 15, 2022
In the United States, immigrants are more likely to be working-age than their U.S.-born counterparts. This means they are more likely to be active in the labor force, allowing them to contribute to the economy not only as consumers but also as taxpayers, helping fund social services and programs like Medicare and Social Security.
It is hard to overstate the importance of entrepreneurship since new businesses are the main driver of job growth in the United States. Immigrants play a particularly important role in this—founding businesses at far higher rates than the U.S. population overall. Today, millions of American workers are employed at immigrant-founded and immigrant-owned companies.
Taxes & Spending Power
Immigrant households contribute hundreds of billions of dollars in federal income, state, and local taxes nationwide and hold a tremendous amount of spending power. This gives them significant economic clout, helping support local communities as consumers and taxpayers. Like all residents in the United States regardless of where they were born, immigrants make use of public services like education, healthcare, and public safety. Even with these costs, however, immigrants’ economic contributions far outweigh the extra cost of additional public services they incur.
The growth in the immigrant population has helped to strengthen America’s labor force. As baby boomers retire, younger immigrants are filling crucial gaps in the market. Nationally, immigrants are more likely to hold an advanced degree than the U.S.-born. They are also more likely to have less than a high school education. Uniquely, this allows them to fill critical shortages at both ends of the skill spectrum, from high-tech fields to agriculture, hospitality, and service industries.
Science, Technology, Engineering, and Math
Jobs in fields related to science, technology, engineering, and math—or “STEM”—fields are some of the most productive jobs in the U.S. economy. These jobs are also expected to experience some of the highest growth rates in the next decade, second only to healthcare jobs. While immigrants already play a huge part in maintaining the United States’ role as a leading innovator, they will also be instrumental in helping high-tech industries meet their full potential as their needs for high-skilled STEM workers increase rapidly in the future.
As millions of baby boomers become elderly, the U.S. healthcare system is facing unprecedented demand, adding jobs faster than any other segment of the economy. Many healthcare businesses and providers are struggling with finding enough workers, and in some rural areas, shortages are particularly acute. Immigrants have already been filling some of our most glaring healthcare needs. They are twice as likely as the U.S.-born to work as home health aides, but also twice as likely to be physicians and surgeons.
Immigrant families have long played an important role helping to build housing wealth in the United States. In recent decades, the more than 40 million immigrants collectively in the country increased U.S. housing wealth by $3.7 trillion. Much of this was possible because immigrants moved into neighborhoods once in decline, helping to revitalize communities and make them more attractive to U.S.-born residents.
International students in the United States contribute tens of billions of dollars to the U.S. economy every year and support a significant number of U.S. jobs through their tuition payments and day-to-day spending. Research has also found that increases in the number of international students at American universities boost innovation and patent creation.
As more immigrants naturalize and become eligible to vote, they continue to gain power at the voting booth. The number of immigrant voters is only projected to rise in the next decade, but already in some states, foreign-born voters are already capable of deciding elections.
The presence of the significant number of undocumented immigrants in the United States, the vast majority of whom have lived in the country for more than five years, poses many legal and political challenges. But while politicians continue to debate what to do about illegal immigration without any resolution, millions of undocumented immigrants are working across the country, collectively contributing billions to the U.S. economy.
The DACA-Eligible Population
DACA-eligible people contribute billions of dollars to the U.S. economy. Clawing back the protections afforded to DACA recipients will likely upset local economies, communities, and schools, hurting employers and businesses dependent these young immigrants as workers and customers.
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New American Economy is a bipartisan research and advocacy organization fighting for smart federal, state, and local immigration policies that help grow our economy and create jobs for all Americans. More…
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