Immigrant workers help grow the U.S. economy: New state fact sheets illustrate the economic benefits of immigration

Political debates about the impact of immigration on the economy have often been at odds with the facts. But the consensus is surprisingly uncontroversial among economists: Immigration expands and strengthens the economy.

The Economic Policy Institute and the Immigration Research Initiative have come together to synthesize some of the most essential facts on immigration, immigrant workers, and the economy in a one-page fact sheet. We will co-release additional fact sheets summarizing state-by-state economic impacts in the coming days.

The fact sheets highlight the reality of how immigration benefits the economy and all workers. For example:

  • Immigrant workers are a major and vital component of the U.S. workforce across occupations and industries, many of which would struggle without their contributions.
  • Immigration expands U.S. Gross Domestic Product and is good for growth.
  • Immigration overall has led to better—not worse—wages and work opportunities for U.S.-born workers.
  • Immigration is enabling the United States to see continued economic growth despite an aging U.S.-born population and shrinking number of prime-age working adults.
  • Immigrants play a key role in health care and home care jobs that help ensure retirement with dignity for seniors and independent living for people with disabilities.
  • People who immigrate to the United States increase the economy’s stock of human capital and ideas, two crucial ingredients for long-run economic growth.

You’ve no doubt heard people who don’t agree on much else come together around the idea that “the immigration system is broken.” This is undeniably true. The current system is unjust and misused by some businesses who profit from exploiting workers, and by some bigots who sow fear, hate, and division for political gain. The flaws in the immigration system are no accident: The federal policymakers who refuse to fix them and the businesses who profit from those flaws possess intertwined financial and political interests in maintaining a broken, unjust system.

As a result, our economy and many workers suffer. To make matters worse, a growing number of states are enacting laws intended to create a hostile environment for immigrants, despite the economic and social damage such policies can inflict on communities, schools, and business sectors whose success relies on successful integration of immigrant families into local labor markets.

As data in the fact sheets illustrate, even in the face of an unjust policy regime, immigrants continue to provide numerous benefits to state economies and workers across the United States. With better immigration policies, these economic benefits could be maximized, allowing the nation to prosper even more and for workers to more widely share the gains. We must continue to call for a humane immigration system that meets the needs of all workers and our economy and ensures all working people have full rights on the job and are able to exercise them without fear of retaliation.

In the absence of federal action on these priorities, some states are already demonstrating how smarter policies can contribute to safer communities and stronger economies. Examples include ensuring all residents can apply for drivers’ licenses so everyone on the road is tested, licensed, and insured; expanding eligibility for the Earned Income Tax Credit and unemployment insurance so all working families are covered equally regardless of immigration status; and investing in language courses so newcomers can learn English more quickly and pursue a broader range of economic opportunities.

Meanwhile, too many politicians continue to use anti-immigrant rhetoric to divide people who might otherwise come together to demand better conditions for all workers. But we know how to create a good economy for workers. It requires uniting around policy choices like investments in infrastructure, manufacturing, and our care economy, with strong labor standards. Regardless of race or country of birth, we all do better when we unite for policies that grow jobs and wages.

See the EPI and IRI national and state immigration fact sheets here.