Refugees’ Role in America’s Economy

Refugees are similar to other lawfully admitted immigrants in many ways. They often take entry-level jobs that many native-born Americans are reluctant to do — such as work in meat processing plants, agriculture, hotel housekeeping, landscaping, and other labor-intensive fields.

One unique aspect of the U.S. refugee resettlement programs is the role of federally supported resettlement agencies, funded in part by my office at the State Department and the Office of Refugee Resettlement at Department of Health and Human Services (HHS). These organizations — many faith-based, others secular — mobilize entire communities to welcome refugees. They connect with volunteers from churches, schools, senior groups, and civic organizations; build relationships with local employers; and even coordinate with police to help refugees understand law enforcement’s role in the U.S.

Let’s take an example: Lutheran Family Services of Boise, Idaho. They receive a limited amount of funding from the State Department and the HHS to help resettle refugees, but they also rely heavily on volunteers. These volunteers are often connected to churches, schools, senior citizens’ groups, or organizations like the Rotary Club.

The agency also needs strong connections with local employers, such as hotels, restaurants, or meatpacking plants, to help refugees find work. In addition, they must build relationships with the police. Many refugees come from countries where law enforcement is not there to help but to oppress, so resettlement agencies make a point of connecting new arrivals with local police to help them understand the important and supportive role police play in the United States.

In this way, arriving refugees help create networks within communities that extend far beyond just the newcomers themselves. Boise, Idaho, is a good example. The city actually has two refugee resettlement agencies, and refugee resettlement has become ingrained in the fabric of the community. Many people there are familiar with refugees and the organizations that support them. For instance, it’s common to see a restaurant hosting a fundraiser where the proceeds go to refugee support.

This kind of awareness fosters broader community connections and helps Boise become a welcoming place — not just for refugees, but for all immigrants. That is what sets refugee resettlement apart. These agencies, supported in part by the federal government and in part by the community, create a "welcoming fabric" that does not exist for other immigrants, who typically arrive to join family members or to take a job. Refugee resettlement, by contrast, builds community connections that make the entire community more welcoming.

Legal status isn’t a barrier — refugees arrive with it. The main challenges are language skills and lack of work experience. Many refugees have been displaced from their home countries for years — sometimes decades. Some have lived 5, 10, even 30 years in countries of asylum, and many children have never set foot in their country of origin. For those born and raised in refugee camps, life has often meant limited access to education, little exposure to English, and virtually no work opportunities.

As a result, many refugees arrive in the U.S. with neither English skills nor job experience. This restricts them to very basic entry-level jobs, typically ones that don’t require regular interaction with English-speaking customers. For example, in many resettlement communities, hotel housekeeping is a common first job, particularly for women — whether young adults or middle-aged refugees. Often, these workplaces have a supervisor who speaks the refugees’ native language, whether Arabic, Somali, Pashto, or another. Because housekeepers mainly take instructions from their supervisor and have little direct guest interaction, the job becomes a manageable first step.

However, such accommodations are not always available. In many cases, finding an employer where language is not a barrier is difficult, which underscores how much language and lack of job experience shape the early employment options for refugees.

Beyond employment, one of the biggest challenges communities face in resettling refugees involves children entering schools without English proficiency. Large school districts, such as Fairfax County or Montgomery County, have developed systems over the years to handle students who collectively speak dozens of languages. Smaller towns, however, often struggle. Places like Athens, Georgia, or other communities considering new resettlement programs frequently express concern about how their schools will adapt to non-English-speaking children. This remains one of the most significant obstacles to successful integration.

My office tracks refugees only during their first 180 days in the United States. At the 180-day mark, we record measures such as employment and self-sufficiency. While this is a short-term snapshot and not always the most meaningful for long-term outcomes, the data typically show that 70 to 80 percent of employable adult refugees are working by that point. Employment is defined as working 30 or more hours per week — not always full-time, but close.

For a deeper perspective, the Office of Refugee Resettlement at the HHS conducts longer-term studies, sometimes covering the previous five years of arrivals. These studies measure economic indicators such as tax contributions and broader impacts on the economy. One study prepared under the first Trump administration, which highlighted the economic benefits of refugees, was initially suppressed. It was later released under the Biden administration and showed the substantial fiscal contributions refugees make through paying taxes and supporting economic growth.

UNHCR’s role in the refugee resettlement program is entirely overseas. They identify individuals in need of third-country resettlement and refer those cases to us. Once a case is referred, their involvement essentially ends.

IOM remains involved a bit longer. They conduct overseas medical exams, operate several of our resettlement support centers, and handle travel arrangements for refugees coming to the United States. IOM also has staff stationed at seven U.S. airports where refugees arrive. Their role is to help refugees through customs and border protection, ensure their documents are processed, and then assist them in boarding their connecting flights to their final destinations. For example, a refugee might arrive at JFK Airport but need to continue on to Akron, Ohio, where the local resettlement agency will meet them.

Ultimately, both UNHCR and IOM complete their work before refugees begin integrating into U.S. communities. At that point, responsibility shifts to our ten national resettlement agency partners. Six of these agencies are faith-based, such as the U.S. Conference of Catholic Bishops, while three or four are secular, including the International Rescue Committee. These organizations play the critical role of welcoming refugees once they arrive and supporting their integration into American life.

What gives me hope is the second generation — the children of refugees. When we traveled around the country to meet with resettlement agencies and visit refugee families, we often heard the same message from parents, especially those over the age of 40 or 45. They would say, “I know I am unlikely to restart my life or have a career here in the United States. I am doing this for my children.”

These parents often work entry-level, minimum-wage jobs that barely support the family, but they pour everything they can into their children’s futures. And, like many other immigrant children, refugee children tend to excel in school. While there is an initial hurdle of not speaking English — often making the first year difficult — kids pick up the language quickly when immersed in it every day.

As a result, refugee children often do remarkably well, sometimes at higher rates than their peers. It is not unusual to hear of them becoming class valedictorians, excelling academically, and pursuing higher education. That is what makes me hopeful: when children arrive young enough to receive an American education, they are well-positioned to go to college, build careers, and contribute meaningfully to society. The future of refugee contributions lies with these younger generations.

That’s a good question, and the answer really varies by location. When refugees first arrive, they are covered by Refugee Medical Assistance, which is essentially the equivalent of Medicaid for low-income Americans. Until recently, this coverage lasted for eight months, but it has been reduced to four months. During this time, refugees have access to basic healthcare funded by the federal government.

The challenge arises once that coverage ends. In the U.S., health insurance is often tied to employment, and many refugees initially find jobs that do not provide health benefits. Hourly positions, in particular, often exclude workers from employer-sponsored healthcare. This creates a gap between the end of government-provided coverage and the point when refugees might gain access through a job or the Affordable Care Act.

These gaps don’t mean refugees are driving up healthcare costs overall. Their numbers are not large enough to have a systemic effect on the healthcare system’s quality or cost. Instead, they simply add to the broader population of low-income Americans who lack reliable health insurance. Like many others in this situation, refugees are often forced to rely on free clinics or medical centers that may be overcrowded, have long wait times, and sometimes offer lower-quality care.

The real issue is structural. The U.S. healthcare system is deeply flawed. Those fortunate enough to have stable jobs with good insurance receive timely, quality care, but they make up only a fraction of the population. The majority, including many refugees, fall into a system where access to adequate healthcare is uncertain and often insufficient.