Policy & Research/Policy Brief/News/Immigration/Texas

Immigrants are crucial
to Texas’ economy

Newly updated FWD.us analysis reveals the state’s continued reliance on immigrants for a robust economy and a strong labor force.
A construction worker helps build a 375 apartment building in Austin, Texas, November 5, 2009.
A construction worker helps build a 375 apartment building in Austin, Texas, November 5, 2009.
"Texas depends on immigrants to grow its economy, and the immigrant labor force cannot be taken for granted"

Immigrants make up nearly a quarter of Texas’ labor force (23%), according to a FWD.us analysis of the most recent U.S. Census Bureau data, nearly doubling the share from three decades ago.1 With more than 3.7 million workers, Texas has America’s second-largest immigrant labor force after California.

Source: FWD.us analysis of 1950 to 2000 decennial Census data, 2010 and 2023 American Community Survey data, with projections for 2024.

Texas depends on immigrants to grow its economy, and the immigrant labor force cannot be taken for granted. Immigrants in Texas’ workforce contribute an estimated $192 billion to the Texas economy annually in personal income, making up nearly 1 in 5 of all spending power dollars in the state. Lawmakers in Austin should prioritize pro-immigrant policies that support families, and that further expand immigrants’ ability to contribute to Texas’ economy.

Use our interactive table below for the immigrant share of critical industries.

Source: FWD.us analysis of 2023 American Community Survey data, with projections through 2024.
Note: n/a refers to insufficient data to provide an estimate. Landscaping and building services are included in business services. Child and senior care is included in health services.

FWD.us analysis shows that immigrants make up significant shares of workers in industries like construction (38%), business services (25%), and manufacturing (27%). Immigrants make up even larger shares of more specific essential industries, like 51% of landscaping services, 48% of building services, 34% of meat processing, 25% of restaurant and food services, and about a third or more of several manufacturing industries, including those that produce plastic products and electrical products.

Source: FWD.us analysis of 2023 American Community Survey data, with projections through 2024
"Immigrants make up nearly a quarter of Texas’ labor force (23%) and contribute an estimated $192 billion to the Texas economy annually"

Texas’ total immigrant workforce is highly integrated into Texas’ society. Some 70% of immigrants in Texas speak English, about 58% are homeowners, and 74% have lived in the U.S. since 2015 or earlier. More than 10 million Texans, or roughly a third of Texas’ population, live in a household with at least one immigrant.

Immigrants of many different backgrounds and various legal statuses make up the total labor force in Texas. More than 1.4 million are naturalized U.S. citizens, an estimated 800,000 people are lawful permanent residents, and 260,000 individuals are members of the workforce with nonimmigrant status, like H-1B visa holders, or other temporary immigrants. Together, these U.S. citizens and people with some form of legal status make up 15% of Texas’ total labor force.

“FWD.us estimates that more than 1.2 million workers in Texas are without legal status or have temporary protections, representing nearly 8% of the total workforce”

Additionally, FWD.us estimates that more than 1.2 million workers in Texas are without legal status or have temporary protections, representing nearly 8% of the total workforce, one of the highest levels among U.S. states. An estimated 440,000, or about one-third, of these workers had a protected status as of the end of 2024, such as Deferred Action for Childhood Arrivals (DACA), Temporary Protected Status (TPS), an active asylum claim, or other deportation-deferred individuals waiting in an immigration backlog. Most of these individuals work in Texas with lawful work authorization.

With such a large share of Texas’ workforce, immigrants without legal status or have temporary protections have become critical to the labor infrastructure of the state, especially during times of crisis such as the COVID-19 recovery or natural disasters like hurricanes and sudden freezes. These immigrants are particularly concentrated in the agricultural occupations (54% of all agricultural jobs), construction jobs (28%), and among building grounds and maintenance workers (22%).

Workers without legal status or having temporary protections are also highly integrated into Texas’ communities and society, with 41% being homeowners and 62% having lived in the U.S. since 2015 or earlier. Through their wages, they contribute more than $45 billion to the economy annually, with more than $10 billion in combined federal, state, and local taxes.

Immigrants help power major sectors of the state’s workforce, driving innovation, creating American jobs, and boosting economic growth. If Texas wants to continue being a leading global economy, then we need to enact policies that build a vibrant, inclusive, welcoming environment for immigrants of all backgrounds. Doing so is critically important for the Texan economy; it is also the right thing to do.

Notes

  1. Figures are based on U.S. Census data for 1950 to 2000 and American Community Survey (ACS) data for 2010 and 2023. Unless otherwise specified, statistics represent analysis from the 2023 ACS, with projections and adjustments to provide figures as of September 30, 2024. See FWD's methodology on how immigrant status is assigned to the 2023 ACS and projections made through the end of 2024. Data were obtained from IPUMS USA. Immigrants were born outside of the U.S. and its territories and do not include U.S. citizens born abroad.

Zaira Garcia

Texas Director

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