Illegal (undocumented) immigrants contribute significantly to the U.S. economy in various ways, including labor force participation, tax payments, and consumer spending.
Economic Contributions of Illegal Immigrants
- Labor Force and Job Sectors : Undocumented immigrants make up a substantial share of workers in critical sectors:
- 25% of all farm workers
- 19% of maintenance workers
- 17% of construction workers
- 12% of food preparation and serving workers
These roles are essential for agriculture, construction, maintenance, and food services industries
- Income and GDP Contribution : In 2023, immigrants (including undocumented) contributed about $2.2 trillion annually to the U.S. economy, which is roughly 8% of the U.S. GDP. This figure includes wages and productivity, with the vast majority of immigrant earnings staying within the U.S. economy
- Tax Contributions : Undocumented immigrants pay substantial taxes:
- In 2022, they paid approximately $96.7 billion in taxes, including $19.5 billion in federal income taxes and $32.3 billion in federal payroll taxes.
- They also contributed $37.3 billion in state and local taxes, often paying a higher effective state/local tax rate than the top 1% of households.
- In 2010, unauthorized immigrant households paid $10.6 billion in state and local taxes, including personal income, property, and sales taxes
- Spending Power : Undocumented immigrants had over $82 billion in spending power in 2019, which supports local economies through spending on housing, goods, and services
- Economic Impact of Deportation : Mass deportation of undocumented immigrants would shrink the labor force by about 6.4%, reduce U.S. GDP by an estimated $1.6 trillion (5.7%), and cost the federal government $400 billion. This would also reduce jobs and economic activity due to fewer consumers and entrepreneurs
Summary
Illegal immigrants are vital contributors to the U.S. economy through their labor, tax payments, and spending. They support key industries, pay tens of billions in taxes annually, and add trillions to the GDP. Removing them would have significant negative economic consequences, shrinking the labor force and overall economic output
