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Defending Immigrants/Policy & Research/Immigration/Texas/Economic/State Policy

Immigrants are crucial
to Texas’ economy

FWD.us analysis reveals the state’s continued contributions of 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 (24%), doubling the share from three decades ago, according to a FWD.us analysis of the most recent U.S. Census Bureau data.1 With some 4 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 augmented 2024 American Community Survey data (see 2024 ACS methodology at fwd.us/2024-acs-methodology for more information).

Texas benefits from the contributions of immigrants to grow its economy, and the immigrant labor force cannot be taken for granted. Immigrants in Texas’ workforce contribute an estimated $225 billion to the Lone Star State’s 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 augmented 2024 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 in Texas make up significant shares of workers in industries like construction (40%), agriculture (28%), business services (27%), and leisure and hospitality (24%). Immigrants make up even larger shares of more specific essential industries, including 52% in building services, 50% in landscaping services, 46% in taxi services, 40% in meat processing, 27% in food and beverage 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 augmented 2024 American Community Survey data.
"Immigrants make up nearly a quarter of Texas’ labor force (24%) and contribute an estimated $225 billion to the Texas economy annually"

Texas’ immigrant population is highly integrated into the state’s communities. Some 87% of immigrants in Texas speak English, about 57% are homeowners, and 73% have lived in the U.S. for a decade or longer. More than 11 million Texans, or roughly a third of Texas’ population, live in a household with at least one immigrant.

More than 1.5 million immigrant workers in Texas are naturalized U.S. citizens, an estimated 650,000 people are lawful permanent residents, and 310,000 individuals have a 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 1.5 million workers in Texas are without legal status or have temporary protections, representing nearly 9% of the total workforce”

Additionally, FWD.us estimates that more than 1.5 million workers in Texas are without legal status or with temporary protections, representing 9% of the total workforce, one of the highest levels among U.S. states. More than half a million, 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.

Many of these individuals work in Texas with lawful work authorization and 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 construction occupations (33% of all construction jobs), agriculture workers (30%), and among building grounds and maintenance workers (25%).

Workers without legal status or having temporary protections are also highly integrated into Texas’ communities and society, with 39% being homeowners and 59% having lived in the U.S. a decade or longer. Through their wages, they contribute more than $60 billion to the economy annually, with more than $16 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.

Notes

  1. Figures are based on U.S. Census data for 1950 to 2000 and American Community Survey (ACS) data for 2010 and 2024. Unless otherwise specified, statistics represent analysis from the 2024 ACS. See FWD’s methodology on how immigrant status is assigned to the 2024 ACS.

Zaira Garcia

Texas Director

tximmigration@fwd.us
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