Immigrants have played a critical role in shaping the economic landscape of the United States, contributing significantly to job creation, innovation, and the overall growth of the economy. Below are key statistics and facts that highlight how immigrants are vital to the U.S. economy:
1. Job Creation and Entrepreneurship
- 46% of Fortune 500 Companies were founded by immigrants or their children. These companies employ millions of Americans and generate trillions of dollars in annual revenue.
- Immigrants are nearly twice as likely as U.S.-born citizens to start their own businesses, accounting for 28% of all new entrepreneurs in the U.S.
- Immigrant-owned businesses have created over 3.2 million jobs in the U.S. in industries ranging from tech to retail and hospitality.
2. Tax Contributions
- Immigrants contribute $492 billion in taxes annually, including federal, state, and local taxes. This includes $329 billion in federal taxes and $163 billion in state and local taxes.
- Undocumented immigrants alone contribute an estimated $11.7 billion in state and local taxes each year.
- Immigrant households pay about $308.6 billion in annual taxes while having a consumer spending power of $927 billion, helping to drive local economies and businesses.
3. Labor Market Impact
- Immigrants make up 17% of the U.S. labor force, filling critical roles in sectors like agriculture, healthcare, construction, and technology. These roles are often essential to industries that face labor shortages.
- In agriculture, immigrants constitute over 73% of the workforce, ensuring that the food supply chain runs smoothly, from farm to table.
- In healthcare, 29% of physicians and 22% of nursing assistants are immigrants, making immigrants an indispensable part of the nation’s healthcare system, especially during crises like the COVID-19 pandemic.
4. Innovation and Technology
- Immigrants are overrepresented in the science, technology, engineering, and mathematics (STEM) fields, accounting for over 25% of all STEM workers in the U.S.
- Immigrants and their children have made groundbreaking contributions to the tech industry, with 55% of America’s unicorn startups (startups valued at $1 billion or more) founded by immigrants.
- In Silicon Valley, the global hub for tech innovation, immigrants make up more than 60% of the workforce.
5. Boosting GDP
- Immigrants contribute about $2 trillion annually to the U.S. Gross Domestic Product (GDP), providing essential services and boosting the economic output across industries.
- Immigration reform that provides legal status to undocumented immigrants could boost the GDP by an additional $1.5 trillion over the next decade, according to economists.
6. Contributions to Social Services and Public Goods
- Immigrant workers pay into Social Security and Medicare, contributing $458.7 billion to Social Security and $121.4 billion to Medicare over the past decade, despite many being ineligible to receive benefits.
- Immigrants also help sustain public services by contributing significantly to education, infrastructure, and healthcare services through their tax payments.
Conclusion
Immigrants are not just participants in the U.S. economy; they are driving forces behind its growth, innovation, and resilience. By creating jobs, paying taxes, and contributing to critical sectors like healthcare, education, and technology, immigrants ensure that America remains competitive and prosperous.
Sources
- American Immigration Council: https://www.americanimmigrationcouncil.org/research/immigrants-in-the-united-states
- New American Economy: https://research.newamericaneconomy.org/report/the-economic-impact-of-immigrants/
- National Immigration Forum: https://immigrationforum.org/article/immigrants-as-economic-contributors-immigrant-tax-contributions-and-spending-power/
- Center for American Progress: https://www.americanprogress.org/article/contributions-immigrants-us-economy/
- Institute on Taxation and Economic Policy (ITEP): https://itep.org/undocumented-immigrants-state-local-tax-contributions-2020/
- U.S. Chamber of Commerce: https://www.uschamber.com/report/immigrants-and-the-economy-contributions-americas-growth
This fact sheet can serve as a powerful resource for educating the public, dispelling myths, and fostering a more informed conversation about the crucial role immigrants play in the U.S. economy.
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