Undocumented Immigrants
It's essential that the United States ensure that people who come here do so legally. The reality, however, is that there are currently an estimated 11 million individuals living in the United States without legal status, the vast majority of whom are working, paying taxes, and contributing in both economic and non-economic ways to their community, often starting their own businesses, and playing integral roles in agriculture, construction, hospitality, and other industries that are essential to the U.S. economy.
NAE Statement on SCOTUS Decision on DACA
After the Supreme Court declined to take up the Trump administration’s appeal on DACA, New American Economy released the following statement: “The courts kept DACA alive for at least a few more months, but it’s Congress’s job to end the uncertainty once and for all,” said John Feinblatt, President of New… Read More
On News of DACA’s End, College Dreamer Turns College Drop-Out
In September 2017, Cristian Olivares was ready to start his freshman year of college. He had registered for business classes and signed a lease for an apartment. Then he learned that the Trump administration was ending Deferred Action for Childhood Arrival (DACA), the 2012 policy that temporarily defers deportation and… Read More
Dreamer Forced to Shelve Plan to Use IT Skills to ‘Protect Our Troops’
Axel did not know he was an undocumented immigrant until he started high school. His parents had brought him and his brother to the United States from Guatemala when he was 6 years old, and, as he got older, the Sioux Falls resident assumed he had the same rights as… Read More
Without DACA, South Dakotan Will Lose Chance to Fill Critical Healthcare Role
Mario Gonzalez is on the front line of emergency care at North Kansas City Hospital. A cardiac sonographer, Gonzales conducts ultrasounds of patients’ hearts. It is a critical diagnostic tool for cardiologists, and trained health technicians like Gonzales are in high demand as an aging population across the United States… Read More
DACA Engineer and Homeowner Seeks Protection for His Family
Cesar Rodriguez is an accomplished 24-year-old. He holds a bachelor’s degree in mechanical engineering, works full time as a design engineer, owns two homes, in Nashville, Tennessee, and does volunteer work with young people. But next year, unless Congress takes action, Rodriguez could be forced to leave his job, his… Read More
Maine Dreamer: ‘People Should Not Be Living in Fear in America’
“EM,” a young immigrant brought to the United States from El Salvador at the age of 3, has been living in fear since the Trump administration announced in September 2017 that it would phase out DACA unless Congress takes action. “If something happens and I’m deported, I would not go… Read More
NAE Statement on Senate Immigration Results
After the Senate failed to pass an immigration compromise this afternoon, New American Economy released the following statement: “So far senators have brought three credible, bipartisan deals to the table. None has reached the finish line, but with the support of a majority of Americans and bipartisan negotiations still taking… Read More
NAE Statement on Rounds-King, McCain-Coons Amendments
Ahead of the upcoming Senate votes on bipartisan immigration proposals, New American Economy issued the following statement: “Border security plus a fix for Dreamers gives Congress a clear path through the gridlock on immigration,” said John Feinblatt, President of New American Economy. “We applaud Senators McCain, Coons, Rounds, and King for bringing… Read More
New Analysis Finds DACA-Eligible Individuals Fill Key Roles in Industries Across U.S. Economy, Including Healthcare, Food Service, Education, Construction, and Technology
NEW YORK, NY – As Congress and the White House continue to hash out the specifics of a deal for Dreamers, New American Economy (NAE) is highlighting the stories and contributions of the DACA-eligible population. New analysis from NAE shows the important role immigrants eligible for the Deferred Action… Read More
Dreamer: ‘They Are Going to Throw Us Somewhere and Not Care’
For now, Sara Hamdi works the delivery counter at a Dayton, Ohio, Olive Garden. But the 27-year-old undocumented immigrant dreams of going back to school, studying business, and one day opening her own restaurant. “I’d like to bring some heart into this world, and I feel like food brings a… Read More
The DACA-Eligible Population
DACA-eligible people contribute billions of dollars to the U.S. economy. Clawing back the protections afforded to DACA recipients will likely upset local economies, communities, and schools, hurting employers and businesses dependent these young immigrants as workers and customers.
Filling Jobs in Key Industries
Most undocumented immigrants come to the United States because of work opportunities. These individuals are far more likely than the rest of the population to be in the prime of their working years, ranging in age from 25-64. Studies also indicate that undocumented immigrants are not displacing U.S.-born workers. Rather, they are filling jobs that few Americans are interested in pursuing.1 One sector, in particular, offers a striking illustration: Undocumented immigrants account for 50 percent of all hired field and crop workers, making them essential to the success and continued viability of American farms.2
Sources:
1 Maria E. Enchautegui, “Immigrant and Native Workers Compete for Different Low-Skilled Jobs,” Urban Institute, 2015. Available online.
2 Thomas Hertz Zahniser Steven, “USDA Economic Research Service - Immigration and the Rural Workforce,” United States Department of Agriculture Economic Research Service, 2013. Available online.
Top Industries by Undocumented Share of Workforce, 2018
Occupations where Undocumented Immigrants Make up the Largest Share of Workers, 2014
Economic Contributors, not Criminals
Contrary to popular rhetoric, undocumented immigration is not linked to a spike in U.S. crime rates. Between 1990 and 2013, a period when the number of undocumented immigrants more than tripled, the rate of violent crime in the U.S. fell by 48 percent.3 Instead of committing crimes, the vast majority of undocumented immigrants in the country are working4 and paying into our tax system.5 And because they are ineligible for most federal benefits, experts have long argued they are net contributors to the Medicare and Social Security programs.6 They have a similar impact at the state and local level. Even in Florida and Arizona, states with large undocumented populations, immigrants pay more in state and local taxes than they draw down in public resources like education each year.7
Sources:
3 Walter Ewing, Daniel E. Martinez, and Ruben G. Rumbaut, “The Criminalization of Immigration in the United States” (American Immigration Council, July 13, 2015). Available online.
4 George J. Borjas, “The Labor Supply of Undocumented Immigrants,” NBER Working Paper (National Bureau of Economic Research, Inc., 2016). Available online.
5 Lisa Christensen Gee, Matthew Gardener, and Meg Wiehe, “Undocumented Immigrants’ State & Local Tax Contributions,” The Institute on Taxation and Economic Policy, 2016. Available online.
6 Roy Germano, “Unauthorized Immigrants Paid $100 Billion Into Social Security Over Last Decade,” VICE News, 2014. Available online.
7 Emily Eisenhauer et al., “Immigrants in Florida: Characteristics and Contributions,” Research Institute on Social and Economic Policy, Florida International University, 2007. Available online.
Judith Gans, “Immigrants in Arizona: Fiscal and Economic Impacts” (Udall Center for Studies in Public Policy, University of Arizona, 2008). Available online.
Estimated Earnings and Tax Contributions of Undocumented Immigrants, 2018
Top 10 States where Undocumented Immigrants Contributed the Most in State and Local Taxes, 2016
Starting Businesses, Creating Jobs
Despite financing and licensing obstacles, undocumented immigrants frequently start their own businesses. In 2014, almost 10 percent of the working-age undocumented population were entrepreneurs. In more than 20 states, they boast higher rates of entrepreneurship than either legal permanent residents or citizens of the same age group. These self-employed workers frequently create American jobs. Their companies also generated $17.2 billion in business income in 2014.
Total Business Income of Undocumented Entrepreneurs in Key States, 2016
Costs of Deportation
More than eight out of 10 undocumented immigrants have lived in America for more than five years. Setting aside the question of whether policymakers have the political will to deport millions of individuals so well established in our society, studies indicate that any such effort would come at an enormous cost. The economist Doug Holtz-Eakin’s American Action Forum conducted one study on the cost of mass deportation.8 By even the most conservative estimates, finding, apprehending, detaining, processing, and transporting the undocumented population would deal a Great Recession-like blow to the U.S. economy.
Sources:
8 Ben Gitis and Laura Collins, “The Budgetary and Economic Costs of Addressing Unauthorized Immigration: Alternative Strategies” (American Action Forum, March 6, 2015). Available online.
Cautionary Tales
Deporting the estimated 8.1 million undocumented immigrants in the workforce would not automatically create 8.1 million jobs for unemployed Americans. The reasons are twofold: By shrinking the number of consumers, entrepreneurs, and taxpayers, mass deportation would shrink our economy and the number of jobs available. Secondly, natives and immigrants often possess different skills and education levels, meaning they are imperfect substitutes.9 Data from Arizona and Alabama, two states with strict immigration laws, offer cautionary tales.10
Sources:
9 “Immigration Myths and Facts” (U.S. Chamber of Commerce, April 14, 2016). Available online.
10 Bob Davis, “The Thorny Economics of Illegal Immigration,” Wall Street Journal, February 9, 2016, sec. Economy. Available online.
11 Ibid.
12 Samuel Addy, “A Cost-Benefit Analysis of the New Alabama Immigration Law” (Center for Business and Economic Research, Culverhouse College of Commerce and Business Administration, The University of Alabama, January 2012). Available online.
Economic Impact of a Path to Legalization
If Congress provided a path to legalization for the millions of undocumented immigrants already here, the economic benefits would be sizable. While legal status would increase access to a variety of public benefits programs, it would also allow newly legalized immigrants to pursue new job opportunities, boosting productivity and earnings. The accompanying increase in consumer spending and tax revenue would help federal, state, and local governments offset associated costs. If undocumented immigrants were required to pay back taxes, U.S. tax revenues would see a further boost.13
Sources:
13 Robert Lynch and Patrick Oakford, “The Economic Effects of Granting Legal Status and Citizenship to Undocumented Immigrants,” Center for American Progress, 2013. Available online.
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