Mark Zandi, the chief economist at Moody’s Analytics, stated that the rise in foreign-born workers is alleviating pressure on the economy. He suggested that this increase may have been a contributing factor to the strong economic growth experienced in the previous year. The U.S. gross domestic product grew by 2.5% in 2023, surpassing expectations and showing improvement from the 1.9% growth in 2022.
The influx of foreign-born workers coincides with a heated debate on immigration policy in the U.S. In February, House Republicans impeached Alejandro Mayorkas, the Secretary of Homeland Security, attributing perceived weaknesses in border security to him. Mayorkas now faces the possibility of a Senate trial.
Cities are working to accommodate the influx of individuals arriving at the U.S.-Mexico border, with a record number of encounters reported by the U.S. Border Patrol in December. Despite a decrease in such encounters in January, the situation at the border continues to present challenges.
Muzaffar Chishti, a senior fellow at the Migration Policy Institute, noted the unparalleled scale and diverse nationalities of migrants arriving at the border. This situation impacts not only border states but also states and cities deep within the country.
The number of foreign-born workers in the U.S. labor force has been steadily increasing since data collection began in 1996. Most, 4.6%, of U.S. workers are in the country legally. Immigrants have accounted for a significant portion of new workers added to the labor force in recent years, helping to counterbalance the demographic challenges faced by native-born workers.
Overall, economists agree that a growing population and labor force are essential for a healthy economy and the sustainability of social programs. Immigration has played a crucial role in providing the necessary workforce for continued economic growth.
The Congressional Budget Office predicts that by 2040, immigration will be the sole source of population growth in the U.S. This is critical given the declining birth rates among native-born citizens and the aging population.
While immigration has been beneficial in terms of increasing overall economic output and tax revenues, there are ongoing debates about its impact on native-born workers. Some argue that immigration has suppressed wages for certain groups, while others highlight the job opportunities created by a growing economy.
The rate of unemployment for U.S.-born workers has reached record lows, indicating a tight labor market. This has led to increased competition for talent and a need for additional workers to fill job vacancies.
Ultimately, the impact of immigration on the U.S. economy is complex and multifaceted. While it has undoubtedly contributed to economic growth and provided much-needed labor, there are varying opinions on its long-term effects on native-born workers and the overall workforce.
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