The recent rebound in U.S. immigration levels has surpassed pre-Covid-19 pandemic trends by 1.8 million.

And yet, the U.S. economy avoided overheating as immigration helped stabilize wages and inflation, according to Goldman Sachs.

Traditionally, immigration influences both the supply and demand sides of an economy. It affects production and consumption alike, Goldman Sachs economistsElsie PengandDavid Mericlestated in a recent note.

Prior studies show that moderate fluctuations in immigration levels do not significantly impact wages and inflation in stable economies.