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The growth prospects for the U.S. economy in 2024<\/a> are bright. After a few years of concerns that the economy might be thrust into a recession<\/a>, forecasts predict a healthier growth rate<\/a> that implies the soft landing is really under way. That promising news could be due to an unexpected and overlooked part of the U.S. economy, but one that\u2019s long been critical to its success throughout history: immigration.\u00a0<\/p>\n Many of the recent economic forecasts underestimated the economic boost people moving to America would bring to the economy, according to JPMorgan head of global head Joyce Chang.\u00a0<\/p>\n Immigration is a \u201cgood thing,\u201d Chang said on CNBC<\/a> Thursday.\u00a0<\/p>\n Its benefits<\/a> to the economy remain underreported, she argues. \u201cOne thing that was really underestimated in the U.S. was the immigration story,\u201d Chang told CNBC.<\/p>\n Nonetheless Chang isn\u2019t oblivious to the fact immigration remains a hot button issue. \u201cNow it is a political issue, not just here in the U.S. but [also] in Europe, it\u2019s probably the number one issue right now, but when you look at the unemployment numbers and the strength of consumption, the immigration was a big part of that,\u201d she said.\u00a0<\/p>\n Immigration has long been seen as one of the most contentious issues in U.S. politics. The ongoing presidential election will almost certainly center heavily<\/a> on immigration. During his tenure in office, former President Donald Trump curbed immigration policies, making it harder for people from other countries to come to the U.S. Trump has vowed to renew those policies<\/a> should he win. Meanwhile, President Biden has already reversed his predecessor\u2019s policies, opening the door<\/a> to millions<\/a> of immigrants and asylum seekers.\u00a0<\/p>\n While the politics are contentious, economics are clear, according to Chang. \u201cFrom everything that we have seen, the revenues that are generated exceed the expenses,\u201d she said.\u00a0<\/p>\n That\u2019s led JPMorgan to be more optimistic about the U.S. economy\u2019s growth rate for the year. The bank recently revised its full year forecast for the U.S. GDP growth rate by a \u201cone full percentage point,\u201d according to Chang. JPMorgan now expects the U.S. GDP to grow 1.3% in 2024 as opposed to the 0.3% it had previously expected.\u00a0<\/p>\n That number is still much lower than the Federal Reserve\u2019s though. Although the bank and the Fed did find common ground that things were trending up for the U.S. economy. Last week the Fed also raised its forecast<\/a> for GDP growth from 1.4% to 2.1%.\u00a0<\/p>\n Government organizations backed up Chang\u2019s claims. The Congressional Budget Office released a report that estimated immigration would contribute an additional $7 trillion<\/a> to the U.S. GDP over the next ten years.\u00a0<\/p>\n A big portion of the growth JPMorgan\u2019s increased optimism through comes after realizing it had undercounted the value of immigration. Especially now that the unemployment rate is relatively low. Although it did creep up to 3.9% in February after hovering around 3.5% for almost a year. Immigration is important<\/a> for the job market during low unemployment because it helps businesses looking for workers find people to fill open jobs.<\/p>\n \u201cThe U.S. population is almost 6 million higher than it was two years ago or so, and so that has accounted for a lot of the increase in consumption, when you see the very low unemployment numbers as well.\u201d<\/p>\n A JPMorgan analysis, which combines CBO data with its own, estimates that immigration added about 3.3 million people to the U.S. last year and expects a similar number this year. When all those new people come into the U.S. they participate in the economy\u2014getting jobs, spending money, building savings accounts\u2014all of which serves as motor oil for the U.S\u2019s economic engine.\u00a0\u00a0<\/p>\n The U.S. economy is heavily dependent on consumer spending so the more people who live, work, and spend money the better the U.S. economy is able to keep chugging along. Juicing consumer spending is a critical component to pulling off the rare soft landing the Fed hoped to achieve in its efforts to tame inflation.\u00a0<\/p>\n Immigrants also help fill jobs in the U.S., which was vital during a time of record high employment, which made it harder for businesses to fill job openings they had.\u00a0<\/p>\n Moody\u2019s chief economist Mark Zandi said<\/a> immigration was \u201ctaking pressure off the economy\u201d by keeping the workforce strong throughout the country.\u00a0\u00a0<\/p>\n In an analyst note from JPMorgan Chase<\/a>, chief U.S. economist Michael Feroli expanded on the importance of immigration to the job market. \u201cIt\u2019s been important to the surprising pace of job growth, even alongside a modestly increasing unemployment rate,\u201d Feroli wrote earlier this week.\u00a0<\/p>\n Keeping the unemployment rate low in recent months has been a triumph of the U.S. economy. As the Fed, lawmakers, and the White House all fought to lower inflation all the conventional wisdom said that for that to happen unemployment would have to rise. Instead it has stayed below 4% throughout the almost two-year fight against inflation.<\/p>\n<\/div>\n\nSubscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up<\/a> for free.<\/div>\n