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Contributing to American Growth: The Economic Case for Immigration Reform

Tell Congress the Time to Act on Immigration Reform is Now

Immigration is part of the American story. Throughout U.S. history, immigrants have come to this country, made it their new home, contributed to its success and taught their children to do their part to make it even stronger. Almost every American is either an immigrant or a descendent of immigrants. From the building of the Transcontinental Railroad to the rise of the Internet, immigrants have played an instrumental role in every chapter of America’s history.

That historic success is at risk, however, because the current U.S. immigration system is broken. Eleven million immigrants live in the United States illegally, and legal channels for immigration fail to meet the needs of the U.S. economy. The U.S. Congress has been considering reforms to strengthen national security and boost economic growth for years but so far has failed to act.

The economic benefits that accompany sensible immigration reform are real and profound. First and foremost, reform would provide a significant boost to economic growth and employment.

  • The Bipartisan Policy Center (BPC) estimates that reform would increase gross domestic product (GDP) by 4.8 percent over 20 years relative to the status quo, while the Congressional Budget Office (CBO) estimates that reform would boost real GDP by 5.4 percent by 2033 and add 9 million workers to the labor force.
  • Crucially, research suggests that these immigrant workers are likely to complement native-born workers rather than replace them, thereby generating efficiencies that benefit both groups.

Reform would also benefit the U.S. workforce through productivity and wage improvements.

  • CBO finds that U.S. productivity would be about 0.7 percent higher in 2023 and about 1.0 percent higher in 2033 under a reform scenario compared to projections under current law.
  • Immigration reform would also likely have a small positive effect on wages over the longer term. Both BPCand CBO find that median wages would increase by 0.5 percent over a 20-year period.

The country’s long-term fiscal outlook would also improve under a reformed immigration system.

  • Policies that bring unauthorized workers out of the shadows and enable them to participate fully in the U.S. economy would help offset the country’s aging workforce and boost government revenue.
  • In all, BPC estimates that federal deficits would decrease by almost $1.2 trillion over 20 years.


Finally, immigration helps spur the U.S. economy through increased entrepreneurship and innovation.

  • Immigrants are nearly 50 percent more likely to start a business than native-born workers, and immigrants or their children founded more than 40 percent of U.S. Fortune 500 companies.
  • Currently, immigrants are responsible for more than 25 percent of new businesses in seven of the eight fastest-growing sectors of the economy.

As American business leaders, Business Roundtable understands the essential contributions immigrants make every day to the U.S. economy. Balanced and sensible immigration policies that attract the brightest minds and hardest workers from around the world would help America achieve its full economic potential while also ensuring that the country stays true to the values — such as e pluribus unum and the rule of law — upon which it was founded.

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