Many economists believe that US immigration, including illegal immigration, has a positive economic impact as they contribute nearly $10 billion to the economic growth every year. Statistical analysis of state-level data shows that immigrants are the main reason for the expansion of the economy's productive capacity by stimulating investment and promoting specialization. Even though immigrants from Latin America had adverse economic impact, immigration still provide a significant gain in gross domestic product, as it accommodate an expanding labor supply which in turn increase the spending on consumer goods, food, rent and a range of necessities and luxuries. In the last decade many economists analyzed the local labor markets and came to a conclusion that immigration has very minimal effect on the employment and wages of US born workers.
United States is considered as one of the largest economies supported by immigrants, working in varied array of jobs both high-skilled professionals with advance degrees and low-skilled labor. While these immigrants compete with the resident workers for the low-skilled jobs, they directly contribute to the economy by paying taxes and social security. Regardless of immigration status both pay taxes to the IRS in billions but the illegal immigrants cannot claim their social security as they do not have legal SSN numbers. Due to this, US is saving billions of dollars from undocumented immigrants in social security taxes thus adding more to the country’s economy.
There is another misconception that the large supply of immigration has negative economic impact and displaces the jobs of low-skilled US born workers. But at the same time there is a need to remember the fact that without immigration the country would not have grown to this great extent in the global world and the economic growth would have been much slower. However, labor data analysis show that the economic impact by immigration is very significant as many immigrants contribute to the country’s economy in an exceptional way by creating new jobs through entrepreneurship and taking jobs that would otherwise be shipped to other countries.
Generally immigrants are high skilled professionals who perform different tasks and fill a variety of roles for which no qualified US workers are available. With the large disparities in US economy, some economists think undocumented workers drive down wages in low-skilled jobs while others say that the effect is minimal and that a larger pool of low-skilled workers attracts new industries that can capitalize on them. Moreover, these undocumented workers are living in very low standards and the employers are exploiting them by paying low salaries and meager benefits. Hence it is really hard to analyze the accurate results of net impact of immigration on US economy.