Immigration remains a powerful driver of the American economy, fueling growth, innovation, and economic resilience across sectors. Immigrants not only create jobs and raise wages but also reduce inflation, increase productivity, and contribute significantly to government revenues. Their presence enhances nearly every segment of the U.S. economy, particularly in critical areas such as healthcare, agriculture, construction, and rapidly developing fields like artificial intelligence and semiconductors.
This article highlights findings from various studies, including original research by FWD.us, showing how immigration delivers substantial benefits to the United States. As the brief notes, “Immigration will contribute to a $7 trillion increase in GDP and $1 trillion in additional government revenue over the next decade.”
Immigration is one of the most effective means of expanding and strengthening the U.S. economy. As the number of people purchasing goods and services rises, so too does the country’s gross domestic product (GDP), a primary measure of economic vitality. With this rise in demand, new businesses emerge, leading to job creation. One study found that immigrants are responsible for 17% of the U.S. GDP, which equals a staggering $3.3 trillion.
Because many immigrants are of working age and often possess strong entrepreneurial qualities, increased immigration leads to a rise in per capita GDP—essentially improving the average income per person. This translates to a higher standard of living and broader prosperity for the country.
Immigrants also play a critical role in funding public services through taxes. Every year, they contribute nearly $525 billion in taxes across federal, state, and local levels. These figures include contributions from refugees, asylum seekers, and undocumented individuals, who collectively pay close to $50 billion annually in taxes, despite having limited access to public benefits. These tax contributions help sustain key programs such as Social Security and ensure continued investment in schools, infrastructure, and other essential services.
The Congressional Budget Office (CBO) further supports these findings. In a report released in February, the CBO director stated that recent immigration trends have reduced the federal deficit. Over the next ten years, immigration is expected to generate a $7 trillion boost in GDP and contribute an additional $1 trillion in government revenue.
By contrast, limiting immigration would lead to a smaller economy, fewer jobs, and a reduction in the availability of goods and services. It could also undermine the country’s global economic leadership. The article warns that restricting immigration would leave the U.S. “smaller, poorer, and weaker.”
Immigrants are crucial to addressing workforce shortages and curbing inflation. As of 2022, immigrants accounted for 18.1% of the American labor force—a figure that continues to rise. Given that immigrants are more likely to be of working age, they help fill key gaps in industries facing chronic labor shortages.
In healthcare alone, immigrants make up over 18% of the workforce. This includes 26% of all physicians, 16% of registered nurses, and a striking 40% of home healthcare aides. These workers help alleviate the severe staffing crises in healthcare, many of which worsened during the COVID-19 pandemic.
Moreover, newly arrived immigrants have been instrumental in resolving post-pandemic labor shortages and restoring disrupted supply chains. Many of these workers entered the U.S. through humanitarian parole and have played a pivotal role in stabilizing the economy.
Immigrants also have a strong presence in science, technology, engineering, and mathematics (STEM) occupations. Nearly 20% of all STEM workers are foreign-born. Additionally, international students make up about 40% of advanced STEM degree recipients in American universities. In areas like artificial intelligence and semiconductor manufacturing, their expertise is essential to keeping the U.S. at the forefront of innovation.
Research by FWD.us shows that immigration can ease inflation by closing labor market gaps that would otherwise drive consumer prices upward. In recent years, the increase in immigration has played a significant role in slowing inflationary trends and maintaining steady economic growth.
Immigrants are not only workers but also job creators. They establish new businesses at twice the rate of native-born Americans. In fact, 45% of Fortune 500 companies in 2023 were founded by immigrants or their children. Immigrants also founded 55% of U.S. startups that have achieved valuations of $1 billion or more.
There’s no evidence that immigrant workers displace native-born workers. On the contrary, immigration is linked to higher employment levels among Americans born in the U.S. While fears that immigration depresses wages are common, data shows minimal impact—and in many fields, especially those requiring high skills, immigrants actually help increase productivity and wage growth. Attempts to limit immigration often lead to outsourcing and job relocation to other countries, rather than improving employment prospects domestically.
Immigrants also significantly enhance American innovation. Despite making up only 16% of inventors in the U.S., they account for nearly a quarter of the country’s innovation output. Their contributions drive technological progress not only in the U.S. but globally.
Many of these innovators began their American journey as international students. During the 2022–2023 academic year alone, international students added $40.1 billion to the U.S. economy and supported more than 368,000 jobs.
Beyond the economy, immigration is also a demographic necessity. The U.S. population grew at its slowest rate between 2010 and 2020 since the 1930s, and the birth rate has continued to decline. Immigration helps counteract these trends by expanding the working-age population and encouraging family growth within the U.S. Immigrants also play vital roles in sectors that serve an aging population, particularly healthcare.
To maintain population stability and economic growth, the U.S. must raise immigration levels. FWD.us research indicates that increasing immigration by 50% annually would raise the working-age population by about 13% by 2040, providing a solid foundation to meet labor demands and support economic expansion.
This is especially crucial in rural America. Between 2000 and today, 77% of rural U.S. counties have seen a decline in working-age residents, which threatens local economies and reduces access to essential services. The study suggests that welcoming just 200 immigrants annually in these counties could reverse population decline in 71% of them by 2040.
Looking ahead, it is clear that immigration is not just beneficial but essential to America’s economic future. The data overwhelmingly supports the argument that immigrants help make the U.S. stronger and more prosperous. As the report concludes, “It is vital that U.S. policymakers should work to preserve and enhance the benefits of immigration by building new legal avenues and increasing opportunities for newcomers to support themselves, participate in their local communities, and contribute to the United States’ success and prosperity.”