The economy is roaring, and immigration is a key reason in the US!

Introduction:

Following on from my earlier article[ The economic impact of the US immigration surge: a double-edged sword]‘Immigration Wave Delivers Economic Windfall’, authored and published on WSG (The Wall Street Journal), this article looks at the same issue in more detail. In the shadows of political debates and border tensions, an untold story is unfolding – the profound impact of immigration on the U.S. economic recovery. Recent revelations in a Washington Post article bring to light a compelling story: the American economy is humming, and immigration is proving to be a major catalyst. Amid political gridlock in Washington over a border deal, economic momentum has been building, with foreign-born workers playing a critical role.

Despite the undeniable economic benefits, the issue of immigration remains highly polarized in American politics. Recent Gallup data shows that Americans now view immigration as the biggest problem facing the country (28%), ahead of concerns about inflation, the economy and government issues!

Job Market Momentum

The Washington Post article makes a remarkable discovery: immigration has boosted the U.S. labor market more than expected, solidifying the country’s economic recovery from the pandemic as the most robust in the world. An analysis by the Economic Policy Institute shows that an extraordinary 50 percent of recent labor market growth between January 2023 and January 2024 can be attributed to foreign-born workers. Even before this period, the number of foreign-born workers had been rising rapidly and had closed the gap created by the pandemic by mid-2022, according to a study by the Federal Reserve Bank of San Francisco.

Economic Rebound and Immigrant Workers

In the face of disruption caused by the pandemic, immigrant workers have proven resilient, recovering faster than their native-born counterparts. In addition, many of them have seen significant wage growth in hiring industries, contributing significantly to the overall economic recovery. Economists and labor market experts emphasize that this increase in employment has played a critical role in closing unprecedented gaps in the economy and ensuring a quick recovery from the long shutdowns.

Polarizing politics and the paradox of immigration

Despite the obvious economic benefits, immigration continues to be a divisive issue in American politics. New polling data from Gallup shows that Americans now view immigration as the country’s biggest problem, ahead of inflation, the economy and government issues. Political gridlock in Washington is highlighted and attempts to solve the immigration crisis face major challenges.

Conflicting narratives

Opinion polls show that President Biden disagrees with his actions on the border, and Republicans increasingly emphasize that immigrants are hurting the economy and taking jobs away from Americans. However, the economic record contradicts these claims. The Pew Research Center estimates that undocumented immigrants will make up 22 percent of the total foreign-born U.S. population in 2021, a 14 percent decline from past decades. In contrast, the number of legal immigrants increased by 29 percent

Future prospects

The Congressional Budget Office presents new estimates that predict significant growth. The US labor force is expected to increase by 5.2 million by 2033, primarily due to net immigration. The economy is expected to grow by an additional $7 trillion over the next ten years, underscoring the significant contribution of new immigrants.

Conclusion:

As we continue to struggle through the complex immigration debates, it is high time and imperative to recognize the unspoken role that immigrants play in the economic engine of the United States. The Washington Post’s findings challenge us to reevaluate our perspectives and promote a nuanced understanding of the symbiotic relationship between immigration and economic growth. The untold stories of immigrants’ resilience and contributions should remind us that beyond politics, they are an integral part of the American economic fabric.

Disclaimer

This article contains insights and commentary on the article “The economy is roaring. Immigration is a key reason” authored and published on “The washington post” The purpose of this article is to provide analysis, discussion, and additional perspectives on the subject matter.

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