Immigration is the process of moving to a new country with the intention to settle there. People move for a variety of reasons: to seek opportunities, to reconnect with family, to fulfill a dream, or, in the case of refugees and asylum seekers, to escape life-threatening circumstances. Whatever their motivation, immigrants are helping to build a better world, and they should be welcomed and celebrated.
While rhetoric around migration has become more polarized, immigrants make up a significant portion of the population in many advanced economies and are essential to their future workforces. In the United States, for example, immigrants account for a third of the population growth over the past decade, and without them, the working-age population would shrink by about 2025. In addition, remittances from migrants in their home countries have helped reduce poverty and foster development.
In general, immigrants boost economic output and expand demand by filling jobs that natives are reluctant to take, such as low-wage labor and service sector work. They also pay taxes and contribute to public goods such as roads, schools, water systems, and courthouses. They are less likely than the population as a whole to use means-tested welfare benefits, and even undocumented immigrants tend to pay more in taxes than they receive in benefits.
Moreover, when immigrant workers are concentrated in specific industries or regions, they can help alleviate bottlenecks to economic growth. For example, during and after World War II, a large influx of Mexican workers in the US fueled economic expansion in California and Texas. In addition, immigrants often relocate to take advantage of job opportunities and better living conditions in other areas of the country. This dynamic is particularly important when labor shortages emerge.
As a result, immigrants often act as “force multipliers.” The greater economic activity they create helps push the economy to its full potential. In addition, their remittances reduce the amount of slack in the economy by funding consumption and investment spending.
Finally, immigrants can be a source of innovation and entrepreneurial spirit. They can bring fresh perspectives, especially in the context of globalization and technological change. In the United States, for example, a large number of successful companies have been founded by immigrants.
Immigrants come from all over the world and are a valuable part of our nation’s economy. In 2022, they were responsible for nearly 1 in 6 tax dollars collected by governments nationwide. Explore the American Immigration Council’s interactive map to see how immigrants are contributing locally in your area.
In the United States, immigration is dominated by individuals from Latin America and Asia. Until 2007, the majority of legal immigrants were from Europe. Since then, the share of arrivals from Mexico, India, and China has risen. However, the overall share of immigrants has remained relatively stable. This trend may be related to the fact that more people are choosing to migrate based on economic incentives, rather than out of necessity. As a result, the proportion of migrants from Latin America is projected to increase more rapidly in the future.