Migration, no matter how controversial politically, makes sense economically. A new IMF study shows that, over the longer term, both high- and low-skilled workers who migrate bring benefits to their new home countries by increasing income per person and living standards. High-skilled migrants bring diverse talent and expertise, while low-skilled migrants fill essential occupations for which natives are in short supply and allow natives to be employed at higher-skilled jobs. Moreover, the gains are broadly shared by the population. It may therefore be well-worth shouldering the short-term costs to help integrate these new workers. Migrants increase GDP per person and productivity: A 1 percentage point increase in the share of migrants in the adult population increases GDP per person in advanced economies by up to 2 percent in the longer term. This increase comes primarily from an increase in labor productivity, instead of an increase in the workforce-to-population ratio. Both high- and low-skilled migrants improve productivity.
The gains migrants bring are not exclusive to high-skilled workers with specific knowledge and diverse skills. Low-skilled migrants also have a significant impact on overall productivity by complementing the existing skill set of the populationhttps://www.weforum.org/agenda/2016/10/migrants-are-good-for-advanced-economies-says-the-imf
When we look at 1997 its a special year of significance to people from Hong Kong. Those who lived in HK in 1970s, 80s and early 90s faced the decision to migrate because of 97 – the year that HK returns to China. Some migrated because of economic reasons , some migrated because of their children’s education, some migrated because of security, some migrated because of fear of the unknown future (wanting some stability and certainty). An individual who enters and settles in a country or region to which they are not native. The United States admits between 700,000 and 900,000 legal immigrants each year.
We understand immigration is one of the most difficult issues in our nation today; however, we must first establish the premise and remind ourselves that America is an Immigrant Nation! We are a nation of immigrants just as God reminded Israel that too were immigrants in Egypt.
Migrants have, in the last ten years, accounted for a 47% increase in the workforce in the United States. It is certainly true as you said, that migrants are a backbone to the U.S. economy and workforce (OECD). Not only boosting the average workplace age but also accounting for a large increase in the public purse as migrants actually end up paying back more statistically into taxes and social contributions . There has been an ideology that has persisted concerning the influx of migrants lowering the average American workers wages, but in long term studies this has shown to have little to no actual effect (OECD). This also makes no sense because as these migrants work and gain money they buy back into society by increasing demand for goods and services, which actually raises the need. There have been studies done however, concerning the effect of large populations of less educated, low-income immigrants, in some regions native-born residents bear significant net costs due to immigrants’ use of public services, especially education (Wharton, PPI). Speaking of education, as this tends to be a weak point for migrant workers, a majority of them end up working in more labor intensive jobs as opposed to linguistic based jobs. Thus, migrant workers tend to complement, not replace native born workers in the job market (Wharton, PPI).
Overall it is very interesting to see the effects that such a large force has on not just the U.S. economy but worldwide. And it definitely will be a point of discussion for American lawmakers in concern to the migrant crisis we have faced in the US and how we will respond.
Wharton PPI. (2016, June 27). THE EFFECTS OF IMMIGRATION ON THE UNITED STATES’ ECONOMY. Penn Wharton Budget Model; University of Pennsylvania. https://budgetmodel.wharton.upenn.edu/issues/2016/1/27/the-effects-of-immigration-on-the-united-states-economy
OECD. (2014). Is migration good for the economy? https://www.oecd.org/migration/OECD%20Migration%20Policy%20Debates%20Numero%202.pdf