Immigrants Fuel the US Economy

Proof that immigrants fuel the US economy is found in the billions they send back home

Migrant workers pick strawberries during harvest south of San Francisco, Calif.
Visions of America/Joe Sohm/Universal Images Group via Getty Images

Ernesto Castañeda, American University

Donald Trump has vowed to deport millions of immigrants if he is elected to a second term, claiming that, among other things, foreign-born workers take jobs from others. His running mate JD Vance has echoed those anti-immigrant views.

Researchers, however, generally agree that massive deportations would hurt the U.S. economy, perhaps even triggering a recession.

Social scientists and analysts tend to concur that immigration — both documented and undocumented — spurs economic growth. But it is almost impossible to calculate directly how much immigrants contribute to the economy. That’s because we don’t know the earnings of every immigrant worker in the United States.

We do, however, have a good idea of how much they send back to their home countries – more than US$81 billion in 2022, according to the World Bank. And we can use this figure to indirectly calculate the total economic value of immigrant labor in the U.S.

Economic contributions are likely underestimated

I conducted a study with researchers at the Center for Latin American and Latino Studies and the Immigration Lab at American University to quantify how much immigrants contribute to the U.S. economy based on their remittances, or money sent back home.

Several studies indicate that remittances constitute 17.5% of immigrants’ income.

Given that, we estimate that the immigrants who remitted in 2022 had take-home wages of over $466 billion. Assuming their take-home wages are around 21% of the economic value of what they produce for the businesses they work for – like workers in similar entry-level jobs in restaurants and construction – then immigrants added a total of $2.2 trillion to the U.S. economy yearly.

That is about 8% of the gross domestic product of the United States and close to the entire GDP of Canada in 2022 – the world’s ninth-largest economy.

Immigration strengthens the US

Beyond its sheer value, this figure tells us something important about immigrant labor: The main beneficiaries of immigrant labor are the U.S. economy and society.

The $81 billion that immigrants sent home in 2022 is a tiny fraction of their total economic value of $2.2 trillion. The vast majority of immigrant wages and productivity – 96% – stayed in the United States.

Remittances from the U.S. represent a substantial income source for the people who receive them. But they do not represent a siphoning of U.S. dollars, as Trump has implied when he called remittances “welfare” for people in other countries and suggested taxing them to pay for the construction of a border wall.

The economic contributions of U.S. immigrants are likely to be even more substantial than what we calculate.

For one thing, the World Bank’s estimate of immigrant remittances is probably an undercount, since many immigrants send money abroad with people traveling to their home countries.

In prior research, my colleagues and I have also found that some groups of immigrants are less likely to remit than others.

One is white-collar professionals – immigrants with careers in banking, science, technology and education, for example. Unlike many undocumented immigrants, white-collar professionals typically have visas that allow them to bring their families with them, so they do not need to send money abroad to cover their household expenses back home.

Immigrants who have been working in the country for decades and have more family in the country also tend to send remittances less often.

Both of these groups have higher earnings, and their specialized contributions are not included in our $2.2 trillion estimate.

A business owner stocks her grocery store.
A Somali business owner stocks her store in Lewiston, Maine.
Tom Williams/CQ Roll Call

Additionally, our estimates do not account for the economic growth stimulated by immigrants when they spend money in the U.S., creating demand, generating jobs and starting businesses that hire immigrants and locals.

For example, we calculate the contributions of Salvadoran immigrants and their children alone added roughly $223 billion to the U.S. economy in 2023. That’s about 1% of the country’s entire GDP.

Considering that the U.S. economy grew by about 2% in 2022 and 2023, that’s a substantial sum.

These figures are a reminder that the financial success of the U.S. relies on immigrants and their labor.The Conversation

Ernesto Castañeda, Professor, American University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Invisible Deaths

The U.S. and Mexico’s Federal Strategic Plans against Migration and their Relation to Invisible Deaths

by Sofia Guerra*

March 8, 2024

A monument at the Tijuana-San Diego border for those who have died attempting to cross. Each coffin represents a year and the number of dead.
A monument at the Tijuana-San Diego border for those who have died attempting to cross. Each coffin represents a year and the number of dead. (Photo credit: © Tomas Castelazo, www.tomascastelazo.com / Wikimedia Commons / CC BY-SA 3.0)

The U.S. and Mexico have strategies to control migration that dehumanize migrants and sometimes lead to their deaths becoming invisible. The U.S. border infrastructure forces migrants to be exposed to extreme natural environments causing deaths while crossing. Some paths to the U.S. are controlled by criminal organizations making them experience violence. The lack of transparency, visibility, and care create invisible deaths.

The U.S./Mexico border has become a dangerous path for immigrants when crossing, creating thousands of deaths. An invisible death is when people die while migrating, later to be found without any form of identification and no information about who the person is and why they passed away.  Jason De Leon conducted a deep dive into invisible deaths within the U.S./Mexico border. He argues that the existing border infrastructure is the result of a federal strategic plan to deter migration that facilitates death but hides its strategy by redirecting blame to migrants.

The U.S. federal strategy pushes migrants into physically demanding natural environments like deserts, rivers, and extreme temperatures. This endangers the migrant’s lives and risks the possibility of death while crossing. USA’s federal strategy also involves developing infrastructure such as walls, militarization, ground sensors, checkpoints, and other measures to impede migrants’ passing.  These strategies cause migrants to face isolation and physiological strain,  making the migration process more challenging and leading to higher mortality rates.

Like the U.S., Mexico has an infrastructure of checkpoints and militarized immigration stations, but with increased anti-immigrant policies criminal organizations further interfere in the movement of people across “their” territories. Corruption has allowed the growth of criminal activities, affecting the safety of migrants passing through. Thus, Mexico has also developed a quiet strategic federal plan against migrants that consists of extreme violence. Mexican trials to get to the US have become a site of intense violence, exploitation, and profit-making among gang members. They encounter abuse, rape, kidnapping, dismemberment, and death. Their migrant journey is used to make a profit and form part of the strategic corruption in the criminal world. This makes the Mexican drug war members control some of the routes that immigrants take within Mexico, making migrant smuggling blend into criminal activity. Migrants’ lives are at risk when encountering the criminal world while crossing; those who die due to criminal activities are likely to have an invisible death. This is due to the lack of transparency that organized crime has with its victims. 

Although the USA and Mexico have different federal strategic plans to dissuade land migration, it becomes evident that their strategies do not favor life but instead create a systematic weapon against migrants. In the USA, migration is seen as a dangerous crisis, while in Mexico, migration is seen as an opportunity for profit. Migrants are dehumanized, and therefore, their lives are not protected, increasing the invisibility of their death.

Copyright Creative Commons. Reproduction with full attribution is possible by news media and for not-for-profit and educational purposes. Minor modifications, such as not including the “About the Study” section, are permitted. 

* Sofia Guerra is a sociology graduate student at American University. She is a research assistant at the Immigration Lab and Center of Latin American Studies at AU. She has conducted research on migration, gender studies, and the bilateral relationship between Mexico and the United States. She also has an interest in policy-making and expanding her research expertise.