Undocumented workers have long been a part of the American workforce, contributing to a wide range of industries from agriculture to construction. Despite the ongoing debates about immigration policy, the economic reality is that undocumented workers play a crucial role in keeping costs low for consumers, driving the growth of certain industries, and filling essential roles in labor-intensive sectors. In Maryland and across the nation, their contributions benefit the overall economy in ways that often go unnoticed.

Consider how undocumented workers help reduce costs and boost economic productivity.

1. Undocumented Workers Are Integral to Labor-Intensive Industries

Undocumented workers make up a significant portion of the workforce in industries like agriculture, construction, and hospitality. In fact, it’s estimated that undocumented immigrants account for approximately 5% of the U.S. workforce, with much higher concentrations in specific sectors. These industries are labor-intensive and often rely on workers willing to take on difficult, physically demanding jobs.

• Agriculture: Undocumented workers make up nearly half of the U.S. agricultural workforce, contributing to the production of fruits, vegetables, and dairy products. By providing labor at lower costs, they help keep prices down for consumers. Without these workers, food prices would likely rise due to labor shortages and the higher wages that U.S. citizens would require to do the same jobs.
• Construction: In states like Maryland, undocumented workers are an essential part of the construction industry, filling roles in general labor, landscaping, and building trades. These workers help ensure that housing and commercial building projects are completed on time and on budget. Lower labor costs mean lower construction costs, which translates into more affordable housing and reduced costs for infrastructure projects.

2. How Undocumented Workers Help Keep Prices Low

Undocumented workers contribute to lower prices by filling jobs in industries that rely heavily on manual labor, often at lower wages than would otherwise be required to attract U.S. workers. This dynamic allows businesses to save on labor costs, which are then passed on to consumers through lower prices for goods and services.

• Food Prices: A large proportion of the labor in the agricultural sector is performed by undocumented workers. Without them, labor shortages would drive up the cost of farming and harvesting crops. This would, in turn, increase the cost of food products at the grocery store—everything from vegetables to dairy and meat products could see higher price tags without the low-cost labor that undocumented workers provide.
• Construction Costs: Construction companies that rely on undocumented workers are able to keep labor costs low, which is critical for keeping housing costs affordable. If construction costs were to rise due to a reduction in available labor, this would likely lead to higher prices for homes and commercial properties. For consumers, this means higher rent, higher mortgage payments, and increased prices for everything from new homes to commercial spaces.

3. Filling Gaps in the Labor Market

Undocumented workers often take jobs that U.S. citizens are unwilling to do, particularly in sectors with harsh working conditions or irregular hours. These jobs, while essential to the economy, are often left unfilled without immigrant labor. This allows businesses to operate smoothly, keeping supply chains intact and costs lower.

• Seasonal Work: Many undocumented workers are employed in seasonal jobs, such as harvesting crops or working in hospitality during peak tourist seasons. These workers provide essential labor when demand is high, helping businesses avoid labor shortages that could otherwise disrupt operations and lead to higher prices.
• Essential Roles in Healthcare and Domestic Work: In addition to agriculture and construction, undocumented workers are also a significant part of the workforce in sectors like home health care, child care, and domestic work. These workers provide critical support to families, allowing parents to remain in the workforce and elderly or disabled individuals to receive the care they need—again, at a cost that is often lower than what would be required if higher wages were necessary to attract U.S. workers.

4. Undocumented Workers Pay Taxes

Contrary to popular belief, many undocumented workers contribute to the economy through taxes. Despite not having legal status, many undocumented workers pay income taxes using Individual Taxpayer Identification Numbers (ITINs) or through payroll deductions. In fact, it is estimated that undocumented workers contribute billions of dollars to Social Security and Medicare each year, even though they are ineligible to receive benefits from these programs.

• Contributions to Social Security: The Social Security Administration has reported that undocumented workers contribute approximately $13 billion annually to the Social Security system. These funds help support the system without ever being claimed by those who contribute, effectively subsidizing benefits for U.S. citizens.
• State and Local Taxes: Undocumented workers also contribute to state and local taxes, including sales taxes and property taxes (either directly or through rent). In Maryland, this helps fund public services such as education, infrastructure, and emergency services, benefiting the community as a whole.

5. The Hidden Cost of Reducing Undocumented Labor

While there are valid concerns about immigration enforcement and border security, it’s important to recognize the potential economic consequences of reducing the number of undocumented workers in the U.S. workforce. If undocumented workers were to be removed from sectors like agriculture and construction, it would likely result in:

• Higher Consumer Prices: Without access to low-cost labor, businesses would face increased costs, which would be passed on to consumers in the form of higher prices for food, housing, and services.
• Labor Shortages: Industries that depend on undocumented workers would struggle to fill essential jobs, leading to slowdowns in production and delivery. This could impact everything from food availability to the pace of construction projects.

Immigration has long been a topic of political and social debate in the U.S., but it is essential to approach the conversation with a balanced perspective. While it’s important to enforce immigration laws and ensure that the system is orderly, it’s equally vital not to scapegoat immigrant workers who are striving for better lives. These workers, many of whom fill critical roles in industries like agriculture, construction, and hospitality, play a significant part in keeping our economy running smoothly.