The economic impact of undocumented workers

Did you know that undocumented immigrants play a crucial role in the United States economy?

As we celebrate National Immigrant Heritage Month, it is essential to recognize how undocumented immigrants not only enrich our culture but also make vital economic contributions, providing essential labor and paying billions in taxes that support the very fabric of American life.

Taxes: In 2023, households led by undocumented immigrants paid $89.8B in total taxes: $33.9B in state and local taxes and $55.8B in federal taxes.

Entrepreneurship: Immigrants are 80% more likely than native-born citizens to start a business, and half of all venture capital-backed firms in Silicon Valley have at least one immigrant founder.

Immigrants & Unicorn Startups: Over 50% of US unicorns were started by immigrants. A business unicorn is a privately held startup company valued at over $1 billion.

Patents & Advanced Degrees: Immigrants with advanced degrees are three times more likely to file patents.

Agriculture: 73% of farm workers in the United States are foreign-born. These workers are crucial to the U.S. agricultural sector, which generates over $400 billion in annual revenue.

Healthcare: Approximately 90% of Deferred Action for Childhood Arrivals (DACA) recipients, often referred to as Dreamers, are employed, with many working in key industries such as healthcare, construction, technology, and retail. They pay $5.7 billion in taxes each year.

Contributions to Science & Culture: Migrants are overrepresented among Nobel laureates, National Academy of Sciences members, and Oscar-winning directors.

Undocumented Employment: In 2023, approximately 4.9% of the U.S. workforce was undocumented, with 89.4% of undocumented immigrants being of working age.

This Map the Impact tool shows the tax contributions of immigrants at the national, state, and local levels.

Sources: American Business Immigration Council  and American Immigration Council

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