The Complex Economic Landscape of Undocumented Immigrants in the United States

Undocumented immigrants, as highlighted by a recent study by the Institute of Taxes and Economic Policy (ITEP), represent a significant fiscal burden for the state. ITEP, a nonpartisan organization based in Washington, D.C., estimates that there are approximately 10.9 million undocumented individuals in the workforce. For every million undocumented immigrants, public services receive approximately $8.9 billion, mostly from jobs in sectors such as construction and agriculture.

Agustina Berguersi of the Ayn Rand Institute points out that undocumented workers fill roles that legal residents often avoid, such as those in physically demanding or low-paying sectors. States such as California, Texas, and New York have received substantial tax subsidies for undocumented workers, with potential increases of up to $40.2 billion if all undocumented individuals were allowed to work.

Challenges arise because of the bureaucratic hurdles and lengthy legal processes required for legal migration. This issue has been a long-standing concern brought to the attention of policy makers, regardless of political affiliation.

While some argue for the need for undocumented workers in industries such as agriculture, reports from bodies such as the U.S. Congressional Committee on Education and Labor Force contradict these claims. They suggest that farm workers constitute only a small percentage of undocumented immigrants in the workforce.

The ITEP study also sheds light on the distribution of tax revenues: more than a third of them go to social security and health benefits, which undocumented workers often don’t have access to.

The economic impact of Latinos in the United States, including the undocumented population, is substantial. The Latino economy has seen significant growth, reaching $3.2 billion according to the official 2023 Latino Gross Domestic Product report from the Latino Donor Collaborative (LDC). Second- and third-generation Latinos are increasingly contributing to this growth, with better access to higher education leading to better job opportunities and higher wages.

Education remains a key factor in the economic success of the Latino community, facilitating upward social mobility and economic prosperity. This growth is not only significant in terms of numbers, but also in terms of quality, as highlighted by experts such as Ana Valdés and Patty Juárez, of LDC and Wells Fargo, respectively. The contributions of Latinos to the U.S. economy are substantial, reflecting a dynamic and evolving economic landscape.