Who Hires Undocumented Workers in the United States

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Despite their lack of legal status, undocumented workers contribute considerably to a variety of businesses and play a vital part in the American economy, these individuals are employed in a variety of industries, including manufacturing, professional services, hospitality, agriculture and construction, their labor which frequently fills labor shortages that native-born workers cannot or will not satisfy, is crucial to the survival of sectors that primarily rely on physical and low skilled labor, the industries that employ illegal workers and their economic impact are broken down in depth below.

Industry Breakdown

1. Construction:
With 13.7% of the workforce (about 1.54 million workers), the construction industry has the largest percentage of unauthorized immigrants for jobs like construction, maintenance and grounds keeping, this industry mainly depends on foreign labor. According to reports, 17% of all construction workers in the United States are undocumented, putting in long hours in difficult conditions. Their input is essential to the growth of cities and infrastructure.

2. Agriculture:
Agriculture ranks second, with 12.7% of its workforce (244,000 workers) being undocumented immigrants. These individuals are responsible for planting, harvesting, and processing crops that feed American families. Undocumented immigrants reportedly account for 25% of all farmworkers in the U.S. often working grueling 10-hour shifts in arduous conditions. Without their labor, many farms would struggle to meet production demands.

3. Hospitality and Food Services:
The hospitality industry employs 7.1% (1 million workers) of undocumented immigrants. These workers are integral to food preparation, serving, housekeeping, and other roles within hotels and restaurants. Undocumented immigrants make up 12% of all food preparation and serving occupations in the U.S. Their presence helps sustain one of the country’s largest service sectors.

4. Manufacturing:
Manufacturing employs 5.4% (870,000 workers) of undocumented immigrants. They contribute to food processing, assembly lines, and other industrial tasks that support the production economy. This sector benefits from immigrant labor due to its demand for consistent and cost-effective manpower.

5. Professional Services:
Professional services employ 4.7% (970,000 workers) of undocumented immigrants. These include administrative support roles and other service-oriented jobs that require less physical labor but are essential to organizational operations.

6. General Services & Transportation:
General services account for 6.5% (500,000 workers), while transportation employs around 5.5% of undocumented immigrants. These sectors rely on immigrant labor for delivery services, taxi driving, warehouse operations, and logistics.

Economic Contributions
Undocumented workers contribute billions to the U.S. economy annually through taxes and consumer spending. Despite their inability to access most social services due to their legal status, they pay significant amounts in state and local taxes—an estimated $10.6 billion in 2010 alone. This includes contributions to property taxes, sales taxes, and excise taxes.
Moreover, these workers help stabilize industries facing labor shortages due to declining birth rates and an aging native-born population.

For instance:

• The agricultural sector relies heavily on immigrant labor for over 25% of its workforce.
• The construction industry could face a shortfall of 500,000 workers by 2025 without immigrant labor.

Undocumented immigrants also play a role in entrepreneurship. In 2018 alone, undocumented entrepreneurs generated $15.2 billion in business income across states like California ($3.4 billion), Texas ($3 billion), and Florida ($1.4 billion).

Challenges Faced by Undocumented Workers
While their contributions are undeniable, undocumented workers face numerous challenges:

• Exploitation: Many work long hours for low wages without job security or legal protections.
• Lack of Access: They are barred from accessing most social services despite paying taxes that support these programs.
• Legal Risks: Their lack of legal status makes them vulnerable to deportation and limits their ability to advocate for better working conditions.

Mass deportation proposals could have devastating consequences for both these workers and the U.S. economy. Experts estimate that deporting all undocumented immigrants would shrink the labor force by 6.4%, reduce GDP by $1.6 trillion over a decade, and cost the federal government $400 billion directly.

Policy Implications
Granting legal status to undocumented immigrants could have transformative effects on the U.S. economy:

• It would create an average of 159,000 new jobs annually and generate an additional $144 billion in tax revenue over ten years.
• Legalization would allow these workers to fully participate in society without fear of deportation while continuing to bolster industries reliant on immigrant labor.

The evidence suggests that reforming immigration policies to emphasize legal pathways for undocumented workers would benefit both the economy and society at large.

Conclusion
Undocumented workers are integral to the U.S. economy, powering key industries such as construction, agriculture, hospitality, manufacturing, and professional services. Their contributions go beyond physical labor—they pay billions in taxes annually while helping sustain industries facing critical labor shortages. Despite facing exploitation and legal risks due to their status, these individuals continue to play a vital role in supporting economic growth.