It’s clear that fixing our broken immigration system would boost our economy and help all workers by increasing the worker productivity, creating more jobs, improving wages of all workers, and reducing the deficit. After waiting over 500 days for the House to take action on legislative solutions to fix our broken system, the President took the executive actions that help boost our economy.

According to analysis by the President’s Council of Economic Advisers (CEA), the President’s executive actions on immigration would boost economic output by an estimated 0.4 to 0.9 percent over ten years, corresponding to increases in GDP of $90 billion to $210 billion in 2024.

• The President’s actions will grow the economy by increasing the productivity of all American workers. These actions will increase the productivity of American workers, in part by allowing undocumented workers to come out of the shadows and find jobs that better match their skills and potential. This shift of workers across occupations will also allow more native workers to specialize in the tasks best suited to their abilities. These effects are likely to lead to wage increases for all workers — immigrants and natives alike. In addition, by encouraging high-skilled immigration, these actions will boost the rate of innovation and patenting in the American economy, further increasing the productivity of the American workforce.
• The President’s actions will increase the size of the American workforce. CEA estimates that the economy will also grow thanks to an expansion of the American labor force by nearly 150,000 people over 10 years as a result of the President’s executive actions.
• Average wages for all workers, both U.S.-born and immigrant, will increase. Increases in productivity and innovation caused by the President’s actions will translate into higher wages for all types of workers. CEA estimates that by 2024 annual wages for native workers will rise 0.3 percent, or approximately $170 in today’s dollars. CEA also estimates that the President’s actions would neither increase nor decrease the likelihood of employment for native workers.
• A bigger economy will reduce the deficit. As the economy grows so do tax revenues, requiring the government to borrow less to finance government operations. This reduced borrowing translates into reduced spending on interest payments by the government, thus reducing overall government spending — and shrinking the deficit. CEA’s estimate of the higher economic growth associated with executive action on immigration would translate into reductions in the Federal deficit by $25 billion in 2024.

At the same time, the President’s executive actions will expand the country’s tax base by millions of people and billions of dollars. Individuals potentially eligible for deferred action under the President’s executive actions are in the country today — and have been for many years. They provide for their families, just like all American citizens. Many are already in the workforce and contributing federal, state, and local taxes. But roughly two-thirds of them don’t pay taxes today. The President is changing that, ensuring that these individuals have the opportunity to apply for a work authorization and pay taxes. By allowing those eligible for deferred action to work in this country, both workers and employers will be able to come out from the shadows and contribute payroll taxes, just like all American citizens.

But these actions are just temporary improvements to our immigration system. Only Congress can make legislative changes that can fix our broken immigration system and boost our economy in a more substantial way. Study after study has shown that common-sense immigration reform will strengthen the economy, spur innovation and increase U.S. trade and exports.

Download Economics of Commonsense Immigration Reform Fact Sheet (PDF)

View the Report: The Economic Benefits of Fixing Our Broken Immigration System