IMPLAN Blog

For the first time since the Great Depression, the United States is experiencing negative net migration, a demographic reversal characterized by a greater number of permanent departures than arrivals.

Recent data indicate that in 2025, the United States experienced a net loss of approximately 150,000 residents, with projections suggesting that this outflow may increase in subsequent years. Although migration is frequently examined through cultural or political lenses, it also produces quantifiable economic effects. Population movements directly affect labor markets, household spending, and demand across industries.

Permanent emigration removes individuals’ income, spending, and economic participation from the domestic economy. An IMPLAN analysis shows that this migration deficit could result in billions of dollars in lost economic activity nationwide.

Spring break tourism has historically served as a reliable seasonal driver of Mexico’s economy. However, increasing concerns regarding cartel-related violence may significantly disrupt visitor flows and the associated economic activity.

A scenario analysis was conducted to assess the potential impact if 15% of planned spring break trips to Mexico during March and April were canceled. Tourism spending is a highly interconnected driver of economic activity, supporting industries such as hotels, airlines, restaurants, retail shops, and transportation services.

IMPLAN’s international tourism visitor spending patterns and a Multi-Regional Input-Output (MRIO) analysis between Mexico and the United States were used to model how a reduction in international travel would affect both economies.

The results indicate that even a modest decline in spring break travel could trigger a multi-billion-dollar economic shock, impacting employment, industry output, and tax revenues in both countries.

For decades, U.S. economic growth has been predicated on the assumption that population increases drive greater demand. This foundational premise is now being challenged.

Recent U.S. Census Bureau data indicate a significant shift in the nation’s demographic trajectory. U.S. population growth declined from approximately 1.0% in 2024 to 0.5% in the twelve months ending June 30, 2025. This slowdown, driven by lower birth rates and reduced international migration, has produced immediate and quantifiable economic consequences.

A slower-growing population means a slower-growing customer base. In 2024, the U.S. added 3.2 million new residents. In 2025, that number dropped to 1.8 million, leaving a growth gap of roughly 1.4 million fewer people contributing to housing demand, retail spending, and service consumption.

IMPLAN was utilized to model the economic implications of this demographic slowdown by quantifying the forgone consumption associated with the 1.4 million 'missing' residents and the subsequent ripple effects.