By Savannah Paolillo | Donor Services
The United States has long been a global leader in providing refuge to those fleeing persecution, war, and violence. While refugee resettlement is fundamentally a humanitarian effort, decades of data show that refugees also make significant contributions to the U.S. economy. In fact, many of the innovations we take for granted today—like the iPhone, the internet, and other groundbreaking technologies—are the result of work done by refugees or their descendants.
Refugees bring fresh perspectives, resilience, and ingenuity that benefit all of us, proving that when we welcome those in need, we also welcome their new ideas, businesses, and breakthroughs.
Refugees are net contributors to the U.S. economy
A 2024 study by the U.S. Department of Health and Human Services found that from 2005 to 2019, refugees and asylees generated a net fiscal benefit of $123.8 billion to the U.S. government. Over this 15-year period, refugees contributed $581 billion in tax revenue, outweighing the $457.2 billion in government expenditures on them during that period - and far exceeding the cost of the programs supporting them for their first few months in the country.
Refugees work, pay taxes, and achieve upward mobility
Refugees enter the workforce at high rates, often filling labor shortages in critical industries. According to a 2023 report, refugees in the U.S. earned a collective $93.6 billion in household income in 2019 alone. That same year, they paid $25 billion in taxes, including $16.2 billion in federal taxes and $8.7 billion in state and local taxes.
Over time, their earnings increase significantly. While refugees who have been in the U.S. for five years or less earn a median household income of $30,500, those who have been in the country for at least 20 years reach a median income of $71,400—exceeding the national median of $67,100. This upward mobility highlights their ability to integrate successfully into the economy and contribute meaningfully to their communities.
Refugees are more likely to become entrepreneurs
Entrepreneurship is a key driver of economic growth, and refugees excel in this area. In 2019, 13% of refugees in the U.S. were entrepreneurs, surpassing the 11.7% rate among non-refugee immigrants and the 9% rate among U.S.-born citizens. This amounted to nearly 188,000 refugee-owned businesses across the country.
Their businesses range from restaurants and retail shops to technology firms and transportation services. In cities like Buffalo, NY, and Fargo, ND, refugee entrepreneurs have revitalized entire neighborhoods, turning abandoned storefronts into thriving small businesses that create jobs and boost local economies.
Refugees strengthen local and state economies
Refugees contribute to economic growth not only at the national level but also within states and cities. In 2019, refugees had a collective spending power of $68.6 billion, stimulating local businesses across the country. In California alone, refugees' spending power reached $20.7 billion, while in Texas, it was $5.4 billion.
Refugees make important tax contributions to many states. In 2019, the state and local taxes paid by refugees exceeded $100 million in each of the 21 states, helping to support schools, roads, and public services.
How can you help?
Refugees are an asset to the U.S. economy, bringing a strong work ethic, entrepreneurial spirit, and contributions that revitalize industries and communities. Welcoming and supporting refugees isn't just humanitarian—it strengthens our economy. There are a number of different ways to help.
Donate: Financial contributions are key for trusted organizations like the IRC, which deliver humanitarian aid to crisis-stricken communities around the world. Your donation can help people survive, recover and rebuild their lives.
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