Recent U.S. and European developments have sparked heightened debates over immigration policy, highlighting distinct cultural, economic and security challenges.
Jan. 19, 2025: U.S. Border Patrol agents prepare to transport immigrants for processing next to the U.S.-Mexico border fence in Arizona. Although migrant crossings have significantly declined over the past year, the new Trump administration has promised to completely “seal off” the border.
Jan. 19, 2025: U.S. Border Patrol agents prepare to transport immigrants for processing next to the U.S.-Mexico border fence in Arizona. Although migrant crossings have significantly declined over the past year, the new Trump administration has promised to completely “seal off” the border. © Getty Images
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In a nutshell
U.S. immigration fueled by economic needs and opportunities for laborers
Europe’s challenges stem from refugee crises and cultural integration issues
Both regions are likely to impose stricter immigration policies
Recent events in the United States and Europe have increased sensitivity around immigration policy. In early February, the Trump administration faced a diplomatic dispute after attempting to deport Colombian immigrants shackled and on military planes. In Germany, the chancellor-in-waiting, Friedrich Merz, is pushing for stricter immigration policies. These developments highlight the urgent need for a strategic approach to immigration. Understanding the underlying issues is essential for determining the necessary actions to be taken. This is where the U.S. and Europe differ in their immigration challenges.
From a purely economic perspective (excluding potential welfare issues), the case for free immigration is clear. An increase in the labor force, whether through a larger native-born population or higher levels of immigration, directly leads to greater output capacity. With a more extensive labor pool, production potential gets a significant boost. Moreover, as the workforce grows and more individuals provide labor services, this expansion also increases overall consumption. To maximize productivity gains for immigration, ideally, immigrant labor skills would complement the host country’s labor skills.
This is analogous to importing additional machinery to boost production: “Importing labor” through immigration can achieve comparable results. The U.S., for example, has about 50 million immigrants, which means 50 million people living in the U.S. were not born there. If any number of individuals from the labor force are deported from the U.S., the economy will be harmed, regardless of the nationality of these workers.
However, immigration is not just an economic phenomenon; it also encompasses cultural and demographic aspects. Migrants can introduce different traditions and beliefs to the host country, potentially influencing the local culture. Furthermore, migrants who become citizens, or their descendants, may have certain expectations about political institutions based on their past experiences. In some instances, migrants have higher rates of reproduction than the domestic population, creating divergent demographic trends that may exacerbate tensions. Cultural issues often provoke stronger emotions regarding immigration than economic ones.
In addition to distinguishing between the economic and social issues associated with immigration, it is essential to understand the different immigration characteristics in Europe and the U.S.
The immigration problem in the U.S.
America has a rich history shaped by immigrants, who in the past were primarily from Europe as well as from Africa via the slave trade. Today, however, the influx of immigrants mainly comes from Latin America and Asia. Mexico, China and India rank among the leading countries of origin for immigrants. These individuals are mainly driven by economic factors, such as job opportunities and the desire for a better quality of life in the U.S. compared to their home countries. Immigration to America is largely a self-selected process motivated by these factors.
As immigrants choose to move to the U.S., their labor skills often complement those of American natives. When we categorize labor skills into three levels – low, medium and high – we find that most native workers fall into the medium-skill range. In contrast, immigrants typically provide both low- and high-skill labor, contributing to various sectors such as agriculture, construction, technology and health care. Notably, regardless of their legal status, immigrants commit less crime than U.S.-born individuals. As a result, most immigration security efforts focus primarily on the U.S.-Mexico border and various visa policies.
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Facts & figures
Skill distribution: U.S. native workers vs immigrants
Most native workers in the U.S. fall within the medium skill range, while immigrants often fill positions that require either low or high-skilled labor.
Most native workers in the U.S. fall within the medium skill range, while immigrants often fill positions that require either low or high-skilled labor. © GIS
Immigrants to the U.S. often demonstrate cultural compatibility with American culture. Shared or mutual religious beliefs can ease cultural assimilation or coexistence. For instance, the grandchildren of immigrants in the U.S. are often indistinguishable from native-born citizens in terms of cultural habits, language or economic activity. Many individuals emigrate to America from countries facing difficult economic or political conditions, seeking better opportunities or safety. Cubans, for example, who risked their lives escaping the Castro regime, are driven by a desire to avoid similar political situations in the U.S.
Politically, immigration laws are established at the federal level but until now have been enforced at the state level. This dichotomy can sometimes result in conflicts and tensions between the federal government and the states. States may enforce immigration laws to varying degrees once immigrants are within U.S. borders. The current administration of President Donald Trump, however, is seeking to give the federal government, the National Guard and possibly the armed forces border enforcement duties.
The immigration problem in Europe
In Europe, immigration presents some important differences compared to the U.S. Many European countries have colonial histories, with former colonies now serving as sources of immigration. Currently, most immigration flows to Central and Western Europe come from the Middle East, Central Asia, Africa and Eastern Europe.
A significant portion of these immigrants do not come to Europe for the same economic reasons as those who migrate to the U.S. In Europe, there is a larger percentage of asylum seekers and refugees fleeing conflict zones like Syria, Afghanistan and Sudan. These individuals are compelled to relocate out of necessity and often choose specific European countries based on the level of social welfare options. As a result, Germany and Sweden – affluent countries with generous welfare offerings, even for immigrants – are seeing the strongest influx of migrants.
Cultural conflicts, along with the European version of identity politics of the last decade, has hindered social integration processes similar to those observed in the U.S. Unlike in the U.S., a vast amount of migrants to Europe, a society based on Judeo-Christian foundations, are Muslim. This is creating parallel societies and, in some cases, social friction. Additionally, regulations restricting the assimilation process through the labor market have not been beneficial. Immigrants may feel unwelcome and often face discrimination in the job market. As a result, immigrants to Europe do not integrate into their host countries as effectively as they do in the U.S. This situation leads to immigrants seeking more welfare support than they contribute, further increasing animosity toward them. The immigration issue in Europe significantly contributes to the rise of contemporary right-wing populism across the continent.
Politically, immigration is managed differently in Europe compared to the U.S. The Schengen Area, which includes 29 European countries, has removed border controls at their mutual borders, effectively operating as a single jurisdiction with a common visa policy. Border control in America is handled at the federal level, while there is no equivalent “federal level” of administration for the Schengen Area. But once immigrants are in either the U.S. or in Europe’s Schengen Area, they are free to travel between states or countries, respectively, without restrictions.
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Facts & figures
EU sees a rise in immigration
The Schengen Area encompasses 25 EU member states and four non-EU countries. As of January 1, 2024, 44.7 million people born outside the EU were living in a member state, reflecting an increase of 2.3 million compared to the previous year.
The Schengen Area encompasses 25 EU member states and four non-EU countries. As of January 1, 2024, 44.7 million people born outside the EU were living in a member state, reflecting an increase of 2.3 million compared to the previous year. © GIS
Some countries in the Schengen Area may enforce stricter border controls than others. This creates a political problem: Country B lacks the incentive to impose strict immigration controls if Country A maintains lenient border oversight. Or, say, if most immigrants are heading to Germany, the German government must negotiate with another sovereign country about how they manage their borders to reduce the inflow of foreigners.
Additionally, efforts to police the border may fall disproportionately on some countries more than others. For example, Southern European countries like Italy and Greece, which are more exposed to immigration from Africa and the Middle East, bear a larger responsibility for overseeing and protecting the borders of the Schengen Area.
Immigration policy and labor regulations as unnecessary constraints
Effectively addressing immigration is a critical issue unless a country decides to completely close its borders. In the U.S., significant attention is paid to illegal immigration. However, since many migrants successfully integrate into American society, a more effective approach than intensifying efforts against illegal immigration would be to simplify and streamline the immigration process, making it more affordable and accessible. The focus should be on reducing, rather than increasing, the costs of being a legal immigrant.
Additionally, like in Europe, the majority of illegal immigrants enter the U.S. to work in low-skilled jobs. Meanwhile, individuals with criminal intentions who wish to avoid detection will attempt to remain undocumented regardless of the process. Therefore, equating illegal immigration with criminality is misguided.
From a U.S. perspective, open-border immigration policy does not imply a complete absence of border controls or eliminating immigration processes. Instead, it can represent a more market-friendly approach to hiring foreign labor. Immigrants would still need to undergo background checks, similar to those born in America seeking employment, as the goal of open borders is to keep criminals out. Moreover, the labor restrictions for immigrants could be updated to be more flexible and accommodating, allowing them to compete in the job market on equal footing with native workers.
Jun. 7, 2024: Supporters of the Alternative for Germany party held a campaign event for the European elections just a week after the murder of a police officer by an Afghan immigrant in Mannheim. The killing sparked a heated debate in Germany over migration and radical Islamism.
Jun. 7, 2024: Supporters of the Alternative for Germany party held a campaign event for the European elections just a week after the murder of a police officer by an Afghan immigrant in Mannheim. The killing sparked a heated debate in Germany over migration and radical Islamism. © Getty Images
The solutions to the immigration issue in Europe differ significantly. In Europe, the primary challenge is integrating immigrants with diverse cultural, linguistic and religious backgrounds into the European job market, which is a crucial first step toward assimilation into European society. One specific challenge includes identifying potential terrorists who may attempt to enter the Schengen Area while posing as asylum seekers. The vast majority of terrorist crimes in Europe over the past decade have been committed by migrants of non-Christian backgrounds. Additionally, high labor costs and complex regulations further complicate the situation for foreign labor supply.
Read more on migration
Employers can easily evaluate the qualifications of Europeans educated at recognized institutions. At the same time, the skills of foreign workers with degrees from lesser-known universities are harder to predict. Just as minimum wage laws disproportionately affect lower-skilled workers, high labor costs and regulations create significant barriers for immigrants. The need for secure borders when neighboring countries are conflicted zones does not require limiting the assimilation of immigrants in the local labor market.
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Scenarios
Very likely: Immigration policy becomes stricter
The U.S. and Europe are tightening their immigration controls and policies. Recent actions taken by the Trump administration and the prevailing social climate in Europe suggest that this is the most likely scenario moving forward. Germany is likely to close its land borders and implement checks to stem the flow of migrants. Several other countries will likely follow suit. The United Kingdom is facing pressure to restrict its immigration levels as well. Italy is trying to implement a program in which asylum seekers must submit applications while in a third country, rather than being able to reside in Italy while their requests are pending.
Unlikely: Immigration policy remains the same
The political rhetoric surrounding immigration often fails to lead to concrete action. Considering the behavior so far observed in the new Trump administration and the prevailing political mood in Europe, such a scenario seems quite improbable. Recent deportations and proposals to change immigration policy show the unlikeliness of this scenario.
Very unlikely: Immigration policy becomes looser
Considering the social response to immigration, terrorism in Europe and the surge of right-wing populism, more lenient immigration policy enforcement or friendlier immigration regulations are highly unlikely.
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