- Immigrant Times
- Sep 8
- 3 min read
Updated: Sep 18
Undocumented immigrants make America much richer, not poorer
. “While it is illegal for undocumented people to have formal, paid employment, it is legal for them to establish their businesses and pay federal, state, and city taxes.”
By The Immigrant Times' Economics Editor*
Undocumented immigrants in the US are givers, not takers: They add $300 billion to the nation’s economy (Photo: Rebecca Shi/American Business Immigration Coalition)
September 2025: The United States would be a poorer country if all its undocumented immigrants were removed. These millions of people, most of whom have lived in the US for more than five years, are working across the country, contributing billions of dollars to the economy. Undocumented immigrants constitute a workforce that is already deeply embedded in the American prosperity, yet denied the rights and recognition that prosperity demands.
Beyond labour, undocumented immigrants are active consumers. Their purchases, from groceries to rent, fuel local economies, support small businesses, and generate sales tax revenue. In immigrant-heavy regions, their economic activity helps stabilise housing markets and sustain public services.
For American politics and society, the legal status of immigrants without a settled right to remain isn’t just a moral imperative; it’s a fiscal one. According to various economic projections, granting work authorisation to undocumented immigrants could unlock an additional $40 to $137 billion in annual revenue.
Legalisation would:
• Raise wages by reducing exploitation
• Improve tax compliance for workers and employers
• Expand access to formal employment and benefits
In short, it would transform a hidden workforce into a fully recognised economic asset.
The facts
• Estimated number of undocumented immigrants in the US: 12 million, 90 per cent of whom are of working age.
• Estimated number of US citizens with at least one undocumented family member: 9 million
• The total estimated household income of undocumented immigrants: US$389 billion.
• The total spending power of undocumented immigrants: $300 billion
• Taxes paid:
Total $90 billion
Federal taxes $56 billion
State & local taxes $34 billion
• The percentage of the total American population that is undocumented stands at 3.5 per cent. Close to five per cent of the American workforce is made up of undocumented immigrants. The share of the American immigrant population that is undocumented stands at 24.7 per cent.
• Industries with the highest share of undocumented workers
Agriculture: 15.1%
Construction: 14.1%
Hospitality, catering and food services: 7.6%
General services: 6.7%
Wholesale trade: 6.3%
Quotes
Former US President Ronald Reagan: “I received a letter just before I left office from a man. I don’t know why he chose to write it, but I’m glad he did. He wrote that you can go to live in France, but you can’t become a Frenchman. You can go to live in Germany or Italy, but you can’t become a German, an Italian. He went through Turkey, Greece, Japan and other countries. But he said anyone, from any corner of the world, can come to live in the United States and become an American.”
Former US President George H.W. Bush: “Immigration is not just a link to America’s past; it’s also a bridge to America’s future.”
Dennis Kucinich, former member of the US Congress: “I take issue with many people's description of people being ‘illegal’ immigrants. There aren't any illegal human beings as far as I'm concerned.”
Jorge Ramos. American-Mexican journalist: “The greatest nations are defined by how they treat their weakest inhabitants.”
Dr Sandra Portocarrero, Assistant Professor of Management at the London School of Economics. She is a (formerly undocumented) Latina US citizen. She is now an immigrant living in London. “While it is illegal for undocumented people to have formal, paid employment, it is legal for them to establish their businesses and pay federal, state, and city taxes.”
Jason Furman, Harvard economist and former Chair of the Council of Economic Advisers: “Much of the current debate misses the crucial dynamics in the ageing US workforce and with it, Americans’ economic prospects.”
Krish O’Mara Vignarajah, immigration advocate and CEO of Global Refuge: “We welcome refugees, not because they are American—but because we are American.”
Fazit
The economic contributions of undocumented immigrants challenge the dominant narrative of burden and illegality. They reveal a workforce that is already deeply embedded in America’s prosperity, yet denied the rights and recognition that their contributions and achievements deserve.
*Methodology: The research for this article was carried out by The Immigrant Times in September 2025.
Sources: American Immigration Council; Global Refuge; Harvard Magazine; Forbes
Further reading: Immigrants create Wealth || US Supreme Court allows immigration raids || Immigrant workers boost Spanish economy ||
FOLLOW