A recent study by the National Bureau of Economic Research indicated that higher concentrations of immigrants raises the wages for all workers. This is based on over 5 decades of data, and the paper will be released in the near future.
In fact this research showed that for each 1% increase in a state’s foreign born population, the wages for all workers in that state increased by an average of 1/2%. This provides further evidence for what we have long advocated, that not only educated immigrants help the economy, but unskilled immigrants also help the overall economy.
Here are my reasons why this is the case. Both skilled workers and unskilled workers generally perform the jobs that Americans either cannot or do not want to do. They earn wages, and then spend these wages in the communities where they live. This benefits restaurants, gas stations, markets, and pretty much every business in the community. Americans and foreigners alike who own these businesses benefit and earn increased profits.
As businesses do better they reach a certain point where they need to hire more workers, thereby creating more of the jobs that Americans want. Furthermore, as more workers get hired, unemployment goes down. As unemployment decreases, there is competition for workers and wages go up. Skilled workers have a larger positive effect on the economy, because they earn more wages and have more money to reinvest back into the economy. They also fill critical areas necessary for businesses and entrepreneurs to succeed.
Therefore, despite seeming counterintuitive, we should actually increase immigration and allow more foreign workers into the U.S. to perform the jobs that Americans either do not want or are not qualified for. For, example we have large shortages of qualified Americans in the IT sectors and the Health Care fields. I bet our overall unemployment rate would significantly decrease if we alleviated these shortages through increased immigration in these sectors.