Immigrant Workers Fuel U.S. Economic Growth, but Challenges Remain

The strong jobs market in the United States has been bolstered by the strength of the immigrant, workers, helping, boost, us, labor, mar workforce, with immigrant workers making up a record 18.6% of the workforce last year, according to Bureau of Labor Statistics data. Despite the U.S. adding fewer than expected jobs in April, the labor force participation rate for foreign-born workers ticked up slightly to 66%.

Economists and the Federal Reserve are highlighting the importance of immigrant workers for overall futureeconomic growth. The influx of immigrant workers is projected to grow gross domestic product (GDP) over the next decade by $7 trillion, according to Congressional Budget Office Director Phillip Swagel. The labor force in 2033 is expected to be larger by 5.2 million people, mostly due to higher net immigration.

Why this matters: The contribution of immigrant workers to the US economy has significant implications for the country's long-term growth and competitiveness. As the US labor market continues to rely on foreign-born workers, policymakers must address the potential impacts on living standards to ensure that the benefits of immigration are shared equitably among all residents.

However, while immigration boosts overall GDP growth, it can also lead to a decrease in GDP per capita, a key indicator of living standards. As more workers enter the labor force, the average output and income per person may decline, even as total economic output rises. This presents a challenge in ensuring that the benefits of immigration are widely shared and translate into improved quality of life for all residents.

Immigrant workers are taking open positions in agriculture, technology, and healthcare fields, where labor supply has been a challenge. Goodwin Living, a nonprofit faith-based elder care facility in Northern Virginia, is heavily reliant on immigrant workers, with 40% of its 1,200 workers being foreign-born, representing 65 countries.

"We don't have enough workers participating in the labor force, and our birth rate has dropped down 2% last year from 2022 to 2023. These folks are not taking jobs. They are helping to bolster and helping us build back; they're adding needed workers to the labor force," said Jennie Murray, CEO of the National Immigration Forum.

Rob Liebreich, CEO of Goodwin Living, emphasized the need for immigrant workers, stating, "We need a lot of hands to support those needs. Right now, one of the best ways that we see to find that is through people coming from other countries, our global talent, and there's a huge competition for them."

The economic contributions of immigrant workers in the U.S. are substantial, with projections indicating they will add trillions toGDP growthin the coming years. However, policymakers must also address the potential impacts on per capita income and living standards to ensure the benefits of immigration are equitably distributed. As the U.S. economy continues to rely on foreign-born workers to fill critical labor gaps, finding the right balance will be key to long-term prosperity for all.

Key Takeaways

• Immigrant workers make up a record 18.6% of the US workforce, boosting the labor market.
• Immigration is projected to grow GDP by $7 trillion over the next decade.
• The labor force is expected to grow by 5.2 million people by 2033, mostly due to higher net immigration.
• Immigrant workers are filling critical labor gaps in agriculture, tech, and healthcare.
• Policymakers must balance immigration's economic benefits with potential impacts on per capita income and living standards.