In August 2025, the Pew Research Center published an analysis of United States Census data from January to July. One of the report’s most worrisome findings focused on the negative effects of anti-immigration policies on the workforce. Since President Donald Trump returned to the White House for a second term, 1.25 million foreigners have dropped from American payrolls. In the meantime, the unemployment rate has climbed from 4% to 4.6%, higher than when the U.S. was recovering from the COVID-19 pandemic in June 2022.
Basic macroeconomic concepts explain the seemingly paradoxical situation of higher unemployment despite 1.25 million “new” job openings. Although the American economy is robust, it cannot easily withstand major workforce losses. Productivity is impacted by each job loss, particularly in the low-wage segments, thus lowering economic activity. When consumer and business demand drops, employers see declining revenues and typically respond by cutting costs. This often translates into immediate layoffs or hiring freezes. Well-informed professionals, including immigration lawyers in San Diego, have an in-depth understanding of the economic benefits immigration can provide, including those listed below.
How Immigration Upholds the American Dream
The primary benefit of immigration consists of foreigners working in low-wage positions that often involve arduous manual labor. This raw aspect of capitalism doesn’t collide with the American Dream. Foreign laborers should be allowed to pursue prosperity through immigration benefits like work permits and paths to legal residency.
Immigrant participation in the workforce generates a powerful “multiplier effect” that sustains broader economic health. These workers are both producers and consumers, fueling demand for local housing, groceries, and services. The economic effect multiplies with business expansion, which requires mid- to high-level management plus administrative roles.
Many immigrants pursue the American Dream through entrepreneurship. According to the Pew Research Center, foreigners are statistically more likely to start small businesses, the historical backbone of job creation in American neighborhoods. In the 1930s, Japanese farmers supplied 40 percent of California’s produce, thus fostering the positive development of economically vibrant communities like Walnut Grove in Sacramento. Today, a third of employees in Silicon Valley, one of the world’s most affluent and productive markets, are foreign-born skilled workers with H-1B visas. There are hundreds of these economic history examples across the U.S.
Direct Contributions to the Social Safety Net
Immigrants are silent partners in the Social Security and Medicare systems. Undocumented workers are ineligible to access benefits from these systems. However, they contributed $26.2 billion to the Social Security Trust Fund and $6.4 billion to Medicare in 2023. Essentially, these are free contributions that accountants recognize as pure fiscal surplus, thus extending the solvency of these retirement programs.
Social Security and Medicare are “pay-as-you-go” systems. Payroll taxes directly fund retirement pensions. Essentially, the systems require a healthy worker-to-beneficiary ratio that immigrants have been sustaining in the U.S. since the 20th century. Despite being ineligible to draw benefits, most legal immigrants begin contributing to the system as soon as they start working. In other words, they provide net benefits to the safety net developed for American retirees. This is why the Internal Revenue Service ensures all workers register for taxpayer identification numbers, regardless of their immigration status.
In these turbulent political times, it’s often difficult to get the truth about immigration, which is that it benefits the United States in many ways. Immigrants are understandably concerned about stereotypes that can affect immigration policies and legislation, leaving them uncertain about their futures in the U.S. If you have questions about any aspect of immigration, contact trusted attorneys who have vast experience with immigration services. In San Diego, CA, KS Visa Law is the firm to turn to when you need advice about immigration law and how it affects you and your family. Call us today to schedule an appointment.
