The Impact of Immigration on U.S. Population Growth and Local Economies
The American Immigration Council does not endorse or oppose candidates for elected office. We aim to provide analysis regarding the implications of the election on the U.S. immigration system.
Immigrants have historically played a vital role in shaping the demographic landscape of the United States, contributing significantly to population growth across the nation’s major metropolitan areas. Data from 2018 to 2023 indicates that immigrants were responsible for a staggering 42.1% of the population growth in America’s 100 largest metro areas. Notably, in cities like metro Seattle, Scranton, New York, and Poughkeepsie, immigrant populations accounted for 91.7%, 83.7%, 82.1%, and 76.9% of growth, respectively.
Immigration in Major Metro Areas
The latest data from the American Immigration Council’s Map the Impact reveals that one in every six residents in these metro areas identified as an immigrant in 2023. This statistic underscores the crucial role immigrants play in revitalizing urban centers, ensuring that the workforce remains robust in key sectors, and driving technological innovations. While growth is concentrated in metropolitan hubs, the benefits ripple out to surrounding communities, extending well beyond city limits.
Population Stabilization Amid Declines
Immigrants are particularly important in regions experiencing population declines. In about one-fifth of the top 100 metro areas, the U.S.-born population shrank between 2018 and 2023. Remarkably, 85% of these regions saw an increase in their immigrant population, effectively countering the decline.
Take Baltimore, for instance: without the substantial 19.4% rise in its immigrant population, the city would have experienced an overall population loss of 0.9%. This trend appears across several major metro areas, illustrating how immigrants can act as a stabilizing force.
Areas Where Immigrants Counteracted Decline
| Metro Area | Percent Change in Immigrant Population | Percent Change in Total Population | Percent Change Without Immigrant Growth |
|---|---|---|---|
| Baltimore | 19.4% | 1.1% | -0.9% |
| Detroit | 7.2% | 0.4% | -0.3% |
| Syracuse, NY | 5.4% | 0.1% | -0.3% |
| Inland Empire, CA | 6.9% | 1.4% | -0.1% |
Supporting Critical Industries
In 2023, a striking 76.9% of immigrants fell into the working-age category (16-64), compared to just 61.4% of U.S.-born residents. This demographic advantage positions immigrants to fill roles left vacant by retiring U.S.-born workers, particularly as the nation anticipates a growing number of older adults.
For example, projections indicate a shortage of approximately 143,200 registered nurses across metropolitan areas by 2037. Immigrants already play a crucial role in this sector, comprising 20.7% of nurses in the top 100 metro areas, with some cities seeing even higher proportions.
Economic Contributions
Across the 100 largest metro areas, immigrants show remarkable levels of labor force participation, representing 22% of the workforce—outpacing their 18.1% share of the population. In fact, their employment rate reached an impressive 96.1% in 2023.
Despite societal perceptions, immigrant-led households made substantial contributions to the economy, generating over $577.4 billion in taxes—$373.1 billion at the federal level and $204.3 billion at the state and local levels. This comprehensive tax contribution supports local services and infrastructure, while the spending power of these households totaled an estimated $1.5 trillion, further fueling local businesses.
Entrepreneurship and Innovation
Immigrants are not just vital workers; they are also key players in entrepreneurship. As of 2023, nearly 29.8% of business owners in the top 100 metro areas were immigrants, generating an astonishing $98.2 billion in business income. Cities like McAllen, Texas; Miami; and San Jose stand out, with immigrant business ownership exceeding 50%.
The reach of immigrants extends into the realms of science and technology as well, where they constitute 23.6% of the STEM workforce nationwide. In tech hubs, this figure is markedly higher—67.4% in San Jose and 49.7% in San Francisco, reinforcing the idea that immigrants are often at the forefront of innovation in the United States.
Regional Variations
The impact of immigration varies widely across different regions, influenced by local industries, demographic shifts, and prevailing policy environments. However, a common trend emerges: immigrants are becoming increasingly integral to the vitality of U.S. metro areas. As current policies threaten to disrupt their lives, recognizing and supporting the contributions of immigrants becomes ever more crucial. Their roles as caretakers, workforce members, entrepreneurs, and innovators not only benefit the economy but also enrich our diverse cultural landscape.
