The Positive Economic Impact of Refugee Resettlement in the United States

The economic impact of refugees in the U.S. often goes unnoticed and unappreciated. As refugees search for safety, they bring with them unique skills, experiences, and determination that strengthen the American economy. In this article, we'll explore the myriad ways refugee resettlement contributes to U.S. economic vitality, and the integral role of organizations such as the International Catholic Migration Commission (ICMC) and United States Conference of Catholic Bishops (USCCB) in this process.

Economic Resilience Through Refugee Resettlement

Refugee resettlement functions as a potent economic stimulant, impacting both local and national landscapes. Various studies have substantiated the fact that refugees are likely to establish businesses, generate employment opportunities, and contribute significantly to the economic well-being of their host communities. 

In 2015, a study analyzed 2.3 million refugees and found that they generated a combined household income of $77.2 billion. They paid taxes amounting to $20.9 billion, leaving them with a disposable income of $56.3 billion, which represents their purchasing power within U.S. businesses. This clearly underscores the economic impact of refugees on host countries. 

Entrepreneurship and Job Creation

It's notable that refugees are more likely to become entrepreneurs compared to individuals born in the U.S., as 13% of refugees are entrepreneurs while only 9% of U.S.-born citizens are. This entrepreneurial inclination is a testament to refugees’ spirit of resilience and ambition, which tends to galvanize local economies through job creation.

Refugees — having faced numerous adversities in their home countries — arrive in the United States ready to build a new life. They bring with them unique skills, experiences, and perspectives that fuel their ability to create successful businesses. These ventures not only provide income for refugee entrepreneurs but also create jobs for other members of the community, showcasing the broader economic impacts of refugees.

Higher Labor Force Participation

Refugees exhibit consistently high rates of labor force participation. They play a crucial role in addressing critical labor shortages, especially in sectors such as healthcare, manufacturing, and hospitality. From working as frontline health workers to providing essential services in manufacturing units and restaurants, refugees bring much-needed diversity and skills to the U.S. workforce. They fill positions that are often hard to staff, thereby strengthening the economic infrastructure of the communities they become part of.

Increased Demand and Economic Growth

In addition to creating businesses and providing labor, refugees also contribute to the economy as consumers. Their consumption patterns lead to an increased demand for goods and services, which fuels economic growth. As they rebuild their lives, refugees buy homes, purchase cars, and spend money on goods and services, thus stimulating the local economy. Moreover, their diverse skill sets and experiences can spur innovation within communities, attracting further investments and fostering economic expansion.

The economic resilience fostered through refugee resettlement is multifaceted. Refugees — through their entrepreneurial endeavors, labor force participation, and increased consumption — contribute significantly to economic growth and vitality. It is important to recognize and value these contributions, and continue to support policies and practices that foster successful refugee resettlement.

Resettlement: An Investment With High Returns

Analyzing the economic impact of refugees, it's important to view resettlement as an investment with high long-term returns, rather than a short-term cost. Although the initial cost of refugee resettlement might seem substantial, research shows that refugees pay more in taxes than they receive in benefits over time.

ICMC and USCCB: Supporting Positive Economic Impacts

Organizations like the International Catholic Migration Commission (ICMC) and the United States Conference of Catholic Bishops (USCCB) are vital in supporting the economic integration of refugees. For instance, recently, ICMC resettlement experts from Turkey were deployed to Virginia to support the integration and cultural orientation of evacuated Afghan refugees, reinforcing the positive economic impact that refugees can have when they integrate into a new society.

With about 30% of the U.S.'s resettled refugees receiving support from the USCCB, the organization continues to play a key role in realizing refugees' economic contributions.

The economic impact of refugee resettlement in the United States is overwhelmingly positive. Refugees not only bring with them resilience and skills but also boost the economy through entrepreneurship, labor force participation, and demand for goods and services.

By welcoming refugees, the United States invests in its own economic future. This serves as a reminder that the successful integration of refugees into American society is both a humanitarian obligation and a route to economic prosperity.

ICMC advocates for the rights of all uprooted people, including Afghan refugees working to integrate into new countries like the United States. Our national member in the U.S. is the Conference of Catholic Bishops, whose resettlement network includes over 100 diocesan offices. 

Together with our partner agencies, ICMC works on providing assistance to Afghan refugees, as well as continuing to support the Afghan Adjustment Act, which would provide long overdue certainty to tens of thousands of Afghans who were relocated to the United States.

ICMC’s other efforts include protecting internally displaced children in Burkina Faso, providing support to survivors of gender-based violence in Malaysia, aiding Ukrainian refugees, and more.

We rely on generous donations to continue our critical work, so consider making a donation to make a difference in the lives of Afghan refugees today!

About the International Catholic Migration Commission

The International Catholic Migration Commission is a nonprofit organization that protects, serves, and advocates for displaced people throughout the world. We help refugees, asylum-seekers, victims of human trafficking, and migrants of all faiths, races, and ethnicities forge lives in safety and dignity.

With support from people like you, ICMC delivers humanitarian aid and social development, protects vulnerable migrants, contributes to refugee resettlement efforts, advocates before governments, and partners with civic leaders. We seek a sustainable solution to dangerous migration and refugee crises.

Find out more by visiting our website.