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

Immigrants are crucial
to Texas’ economy

New FWD.us analysis reveals the state’s 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 now make up nearly a quarter (23%) of Texas’ labor force, according to a FWD.us analysis of U.S. Census Bureau data, nearly double the share from three decades ago.1 With more than 3.3 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 2019 American Community Survey data

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 $119 billion to the Texas economy annually in personal income, making up nearly 1 in 5 of all wage 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 2019 American Community Survey data.
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 (37%), business services (23%), and manufacturing (26%). Immigrants make up even larger shares of more specific essential industries, like 53% of landscaping services, 47% of building services, 42% of meat processing, 22% of restaurant and food services, and a third or more of several manufacturing industries, including those that produce plastic products and electrical products.

Source: FWD.us analysis of 2019 American Community Survey data
"Immigrants now make up nearly a quarter (23%) of Texas’ labor force and contribute an estimated $119 billion to the Texas economy annually"

Texas’ total immigrant workforce is highly integrated into Texas’ society. Some 71% of immigrants in Texas speak English, about 59% are homeowners, and 79% have lived in the U.S. since 2010 or earlier. About 9 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 1.1 million are naturalized U.S. citizens, an estimated 900,000 people are lawful permanent residents, and 140,000 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 1.1 million workers in Texas are undocumented immigrants, representing nearly 8% of the total workforce”

Additionally, FWD.us estimates that more than 1.1 million workers in Texas are undocumented immigrants, representing nearly 8% of the total workforce, the highest level of any U.S. state. With such a large share of Texas’ workforce, undocumented workers 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. Undocumented immigrants are particularly concentrated in agricultural occupations (33% of the total agricultural workforce), construction jobs (27%), and among building grounds and maintenance workers (24%).

Undocumented workers are also highly integrated into Texas’ communities and society, with nearly half (49%) being homeowners and more than three-quarters (78%) having lived in the U.S. since 2010 or earlier. Through their wages, they contribute more than $30 billion to the economy annually, with an additional $6.5 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 2019. Unless otherwise specified, statistics represent analysis from the 2019 ACS. 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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