Deep Dive: The Economic Impact of Refugee Resettlement

There is a common misconception that welcoming newcomers harms the United States economy — and politicians have used such claims to justify policy proposals that are harmful to refugees and immigrants. That simply isn’t true.

The question of whether the U.S. should welcome refugees is not an economic one: It is a moral responsibility, and a recognition of the humanity and dignity of others. However, generations of immigrants and refugees have undeniably shaped the U.S. economy, and it is worth considering their effect on the country’s economic prosperity.

Studies show that refugees contribute more to the U.S. economy than they consume in government services, are likelier than members of the general population to launch businesses, drive innovation, and fill labor gaps in crucial industries. Curtailing the number of refugees in the U.S. inarguably has a negative effect on the national economy.

In the latest edition of HIAS’ Deep Dive series, we explore these points in more detail.

Refugees Contribute More to the Economy than They Consume in Government Services

When refugees are resettled into the United States through the U.S. Refugee Admissions Program (USRAP), they qualify for a range of government services designed to help them manage their first months in the country and often rely on programs like Medicaid and SNAP.

But the cost of these benefits pales in comparison to what refugees give back. Between 2005 and 2019, the Department of Health and Human Services found that refugees and asylees contributed nearly $124 billion more to the U.S. economy in tax receipts than they withdrew in government services.

In addition to taxes, refugees fuel economic growth through consumer spending, possessing the spending power of some $83 billion. By the time they have been in the U.S. for 20 years, they earn an average of $4,300 more per year than native-born citizens.

The government services refugees receive in their first months in the U.S. aren’t a good example of wasteful spending. If anything, the short-term support refugees receive is greatly outweighed over time by their long-term contributions.

Refugees are More Likely to be Entrepreneurs and Create Jobs for Others

13 percent of refugees to the United States create businesses, a higher percentage thanthat of all immigrants (11%) or of the native-born U.S. population (9%). It’s unsurprising that refugees are so entrepreneurial considering that nearly half (43%) were self-employed in their countries of origin. The U.S. has more than 178,000 refugee entrepreneurs who bring in over $6 billion in business income — and provide additional benefits through creating jobs and growing the economy.

The percentage of refugee entrepreneurs would be even higher if refugees were not subject to immense structural barriers, such as a lack of access to credit and capital. To address these roadblocks, HIAS established the Economic Advancement Fund (EAF) in 2022, a community development financial institution that provides loans, business training, and technical assistance to low-income refugees and displaced people.

“For a lot of our clients, entrepreneurship is their primary occupation, it’s their identity, it’s who they are,” said EAF Director Phillip Bailey. “We are with them at all steps and points in their journey and really try to provide a continuum of services that are beneficial to any entrepreneur who comes to us for assistance.”

Refugees Fill Labor Gaps

According to the U.S. Chamber of Commerce, nearly every state in the country is facing challenges finding enough workers to fill vacant jobs. Millions of workers have left the workforce since the emergence of Covid-19 and labor force participation remains below pre-pandemic levels. Due to an aging population, observers expect this employment shortfall to persist until at least 2031.

Welcoming refugees can partially address this problem. An American Immigration Council study found that 78.2% of refugees are working age (defined as between 18 and 64), compared to 61.9% of the U.S.-born population, and fewer than four percent are unemployed.

Refugees regularly fill jobs in industries most in need of workers, such as health care — a solution to a problem that will only grow more acute as the American population ages. The need for home health aides is expected to grow by 17% between 2024 and 2034. Without refugees, finding enough workers willing and able to do work in such industries would be significantly more challenging.

The Impact of Trump’s Anti-Immigrant Policies on the Economy

Since President Trump took office in January 2025, his administration has created draconian immigration policies that have harmed refugee and immigrant communities across the country. What is less reported on is how this immigration crackdown has also harmed the U.S. economy.

The Brookings Institution estimates that the decline in immigration in 2025 reduced GDP growth by between 0.19 and 0.26 percentage points and lowered consumer spending by at least $40 billion. In comparison, immigrants contributed $1.7 trillion to the U.S. economy in 2023 alone.

While anti-immigrant politicians argue that reducing immigration will open job opportunities for American citizens, the opposite is true. Because immigrants have significant spending power, as they leave, so does their consumer behavior. Employers struggle to fill roles and cancel projects or even close their businesses rather than operate without critical labor.

In addition, the cost of immigration enforcement under the Trump administration has skyrocketed, costing American taxpayers billions. In 2025, the U.S. government gave Immigration and Customs Enforcement (ICE) $28.7 billion, triple its budget from the previous year. In fact, Congress recently voted to give immigration enforcement an additional $70 billion over the next three years.

Cutting refugee admissions, detaining and deporting legal immigrants, and scaring away any future newcomers to the U.S. will not make the country safer, and it certainly won’t make it richer. As we have for over a century, HIAS continues to fight for the rights of refugees and immigrants, working towards a world where all displaced people find welcome and opportunity. Learn how you can advocate for refugees and immigrants here.

Originally published December 18, 2014. Updated on July 27, 2026.