Significant Tax Contributions
In 2022, undocumented immigrants also paid $8,889 in federal, state, and local taxes per person.
Source: Kelly Sikkema/Unsplash
This substantial contribution helps fund services that benefit everyone, even though immigrants themselves are often barred from accessing these services.
Supporting Public Programs
Over a third of the taxes paid by undocumented immigrants go toward payroll taxes for Social Security, Medicare, and unemployment insurance.
Source: Kelly Sikkema/Unsplash
Despite contributing $25.7 billion to these programs, undocumented workers are ineligible for their benefits.
State-Specific Revenue
Six states raised over $1 billion each in tax revenue from undocumented immigrants in 2022.
Source: RoboAdvisor/Pixabay
California led the way with $8.5 billion, followed by Texas, New York, Florida, Illinois, and New Jersey.
Economic Impact in California
Undocumented immigrants are responsible for producing more than half a trillion dollars’ worth of goods and services in California.
Source: Canva
Their labor accounts for nearly 5% of the state’s GDP, highlighting their economic significance.
Key Industries Dependent on Immigrant Labor
Nearly half of California’s agricultural workforce is undocumented.
Source: Freepik
Additionally, 28.7% of Los Angeles County’s construction workforce and significant percentages in manufacturing and retail trade rely on undocumented labor.
Contribution to Job Creation
The work of undocumented immigrants not only contributes directly to the economy but also creates additional jobs.
Source: Jeriden Villegas/Unsplash
For every undocumented worker, 0.78 additional jobs are created, showing their importance to overall economic health.
Tax Contributions at the Local Level
At the state and local levels, undocumented immigrants paid $37.3 billion in taxes in 2022.
Source: Wikimedia
These payments support essential services and infrastructure, benefiting communities across California.
The Human Element
More than half of the undocumented immigrants in California have lived in the state for over 15 years.
Source: Enric Cruz Lòpez/Pexels
This long-term residency highlights their deep roots and ongoing contributions to their communities and the economy.
Educational Attainment and Workforce Skills
Nearly half of California’s undocumented immigrants have at least a high school diploma, and 15% hold a bachelor’s, graduate, or professional degree.
Source: Wikimedia
Their skills and education significantly enhance the state’s workforce.
Pathways to Integration
Governor Gavin Newsom’s administration has extended health insurance to all residents through Medi-Cal, regardless of immigration status.
Source: Justin Sullivan/Getty Images
This move is a step toward recognizing the vital role of undocumented immigrants in the state’s economy.
A Call for Recognition
Undocumented immigrants are crucial to California’s economy, contributing significantly through taxes and labor. Clearly, recognizing and integrating these workers should be a priority for the state’s economic health and social equity.
Source: Eric Chan, Wikimedia
As executive director of the Center for Economics of Social Issues at California Lutheran University Jamshid Damooei said, “They are makers, not takers… We’ve got to start integrating them instead of threatening them.”