Suppose you live in an economy with 1,000 workers with 1,000 jobs. Five immigrants enter your economy each year (the usual immigration rate). According to the law of supply and demand, that means that five people will lose their jobs or maybe the bosses will pay each worker less as they compete for scarcer jobs. But in most cases nothing like that happens. Instead there are now 1005 workers in 1005 jobs. Why?
There are many reasons (economists are still studying and analyzing data), but perhaps the main reason is that the five new workers need rooms, clothing, meals, entertainment, etc. They buy things. The growing economic system requires an additional clerk or carpenter . The American carpenter who grew up in the United States might get promoted to foreman, because he knows the language and system better than the immigrants who joined his crew.
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