Post-epidemic immigration surge become the key reason for continued U.S. economic growth？
Economists increasingly believe that the surge in immigration after the pandemic is a key reason for stable economic growth without driving up inflation.
The wave of immigration in the United States has helped the job market thrive while controlling inflation, demonstrating the positive impact of immigration on economic growth.
According to data from the US Bureau of Labor Statistics, the United States added 303,000 new jobs in March 2024, indicating sustained strong economic growth. Usually, such growth may mean that inflation will rise. However, although the annual price growth rate exceeds 3%, higher than the Federal Reserve's target of 2%, it is far below the peak of 9% in the summer of 2022.
The positive effects of immigration: Economists increasingly believe that the surge in immigration after the pandemic is a key reason for stable economic growth without driving up inflation. The new immigrants helped employers fill positions and controlled overall price growth with reasonable salary levels.
David Mercle, Chief US Economist at Goldman Sachs, pointed out that the increase in immigration has driven growth in the labor market, and strong consumer demand is unlikely to significantly increase prices. In fact, the "tension" indicators of the labor market, such as wages, have not increased, but have continued to decline.
Immigration and Employment Growth: The Congressional Budget Office points out that the surge in immigration since 2022 is a major factor in helping to expand the total labor force in the United States.
Brookings College has also reached a similar conclusion. Wendy Edelberg, former Federal Reserve economist and current Hamilton Program Director at Brookings College, said that the overall impact of immigration on inflation is not very significant, but it may be marginal. The surge in immigration will allow the economy to withstand higher levels of employment growth without overheating.
Economic impact: From pensions to local businesses seeking workers or new clients, immigration often has a positive impact on the economy and may also put pressure on state and local budgets. Immigration has become the most controversial domestic issue facing President Biden, with major cities such as New York and Chicago facing immigration political crises.
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