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Immigration Still Powers The US Economy, Even With The Crackdown
Investopediaยท 2025-11-11 17:00
Core Insights - Immigration continues to contribute to the growth of the U.S. workforce, with foreign-born workers increasing at a rate of 4% per year compared to 1.2% for native-born workers since 2021 [2][3][7] - The decline in immigrant workforce numbers reported by the Bureau of Labor Statistics may be misleading due to immigrants' reluctance to participate in government surveys, leading to potential underreporting [5][7] - Revelio Labs' analysis, which relies on professional profiles rather than surveys, suggests that the U.S. economy needs to create between 32,000 to 97,000 jobs monthly to maintain current employment levels, contrasting with lower estimates from other economists [4][9] Immigration Impact on Labor Force - The immigrant workforce is growing faster than the native-born population despite immigration restrictions and deportations [2][7] - Revelio Labs attributes the discrepancy in workforce numbers to immigrants' fear of sharing information with the government, which affects survey accuracy [5][7] - The analysis indicates that the U.S. economy's job creation needs are higher than previously estimated to prevent rising unemployment [4][9] Job Creation Requirements - Revelio Labs estimates that the U.S. needs to add 32,000 to 97,000 jobs each month to break even, while the American Enterprise Institute suggests a lower requirement of 10,000 to 40,000 jobs [9] - In August, the U.S. economy added 22,000 jobs, indicating a potential deterioration in the job market under Revelio's assumptions, while it may be stable according to AEI's estimates [9]