The economy is roaring. Immigration is a key reason
Immigration has propelled the U.S. job market further than just about anyone expected, helping cement the country’s economic rebound from the pandemic as the most robust in the world.
That momentum picked up aggressively over the past year. About 50 percent of the labor market’s extraordinary recent growth came from foreign-born workers between January 2023 and January 2024, according to an Economic Policy Institute analysis of federal data. And even before that, by the middle of 2022, the foreign-born labor force had grown so fast that it closed the labor force gap created by the pandemic, according to research from the Federal Reserve Bank of San Francisco.
Immigrant workers also recovered much faster than native-born workers from the pandemic’s disruptions, and many saw some of the largest wage gains in industries eager to hire. Economists and labor experts say the surge in employment was ultimately key to solving unprecedented gaps in the economy that threatened the country’s ability to recover from prolonged shutdowns.
“Immigration has not slowed. It has just been absolutely astronomical,” said Pia Orrenius, vice president and senior economist at the Federal Reserve Bank of Dallas. “And that’s been instrumental. You can’t grow like this with just the native workforce. It’s not possible.” [Continue reading…]