Former President Donald Trump and his supporters have frequently expressed concerns about immigration negatively impacting the U.S. job market. However, economists argue that immigrants actually benefit the economy and job market by creating new jobs through spending in local economies and starting businesses. Immigrants are also more likely to become entrepreneurs than native workers, and a recent surge of immigrants is expected to add trillions to the nation’s GDP over the next decade. While some research suggests that immigrants can impact the wages of certain subgroups of U.S.-born workers, the consensus is that there are not significant costs to U.S.-born workers from immigration.
Immigrants account for about 14% of the U.S. population, with most being in the U.S. legally. Despite concerns about immigrants taking jobs from U.S. citizens, economists argue that immigrants have actually helped cool an overheated labor market by filling critical job vacancies, especially in industries like leisure and hospitality. Immigrant labor has alleviated severe staffing shortages and helped dilute inflationary wage pressures, benefiting the U.S. economy and reducing competition for existing jobs. While some Americans may experience negative wage effects due to immigration, overall the impact on the job market is not significant.
Research has shown that immigration has little overall impact on employment levels among Americans. While some groups, such as prior immigrants and native-born high school dropouts, may be more affected by job competition from new immigrants, most economists agree that the job creation effect of immigration outweighs any negative impact on wages. Different studies have shown varying results on the impact of immigration on U.S. workers, with some finding negative effects on high school dropouts, while others dispute these findings and argue that immigrants ultimately create more jobs than they take.
Economists argue that native U.S. workers and immigrants tend to complement each other, even if they have similar educational backgrounds. By performing different tasks within industries like restaurants and farms, native workers and immigrants make each other more productive and create more job opportunities. Factors like occupational upgrading can lead to higher wages for native workers who initially compete with immigrants for jobs. Ultimately, the impact of immigration on the U.S. job market may vary depending on the economic environment and specific circumstances in different regions and industries.
While concerns about immigration and its impact on the job market remain a contentious issue, economists generally agree that immigrants benefit the economy and create more jobs than they take. The influx of immigrants in recent years has helped alleviate labor shortages in key industries and has contributed to the overall growth of the U.S. economy. While certain subgroups of U.S.-born workers may experience wage effects due to immigration, the consensus is that the long-term benefits of immigration far outweigh any short-term challenges. As the U.S. continues to grapple with immigration policy, understanding the economic impact of immigration on the job market will be crucial in shaping future decisions and policies.
