By Granite State Report
Immigration — and in particular undocumented immigration — is one of the most contentious issues in American politics and policy debates. Opponents paint it as a drain on jobs, public services, and budgets, while proponents point to immigrants’ economic contributions and the essential roles they play in the labor force. Sorting fact from fiction is essential for citizens, especially in states like New Hampshire where workforce dynamics and demographic trends are shifting.
Who We’re Talking About
Unauthorized, undocumented, or irregular immigrants are individuals residing in the United States without legal immigration status. Estimates from the Migration Policy Institute and Pew Research Center place this population at roughly 11 million people nationwide, making up around 3–5 percent of the U.S. workforce depending on methodology and definitions.
In New Hampshire, undocumented immigrants are a small share of the population — estimates put them at about 1 percent of residents, but they often live in mixed-status families where U.S. citizens may be children or spouses.
Economic Contributions
Far from being economically idle, undocumented immigrants are active participants in the economy.
They fill jobs that many U.S. citizens are not willing to take, particularly in construction, agriculture, hospitality, and care sectors. National estimates show undocumented immigrants make up about 5 percent of the workforce overall and higher shares in some industries — for example, construction and agriculture.
Many unauthorized immigrants pay taxes. Though not eligible for Social Security benefits tied to their tax contributions, undocumented workers contribute to the Social Security Trust Fund and other government receipts.
Researchers also find that immigrants — including those without legal status — expand economic output by increasing labor supply, supporting business demand, and contributing to GDP growth. Over a decade, immigration overall is projected to raise total U.S. GDP significantly and modestly boost wages for non-immigrant workers through productivity effects.
In New Hampshire, foreign-born workers — including undocumented residents — account for a notable slice of the workforce. Nearly 7 percent of the state’s labor force is foreign born, providing labor in fields facing shortages such as healthcare, manufacturing, and technology.
Fiscal Impacts: Costs and Benefits
The question of whether undocumented immigrants are a net fiscal benefit or burden is heavily debated among economists, largely because impacts differ by level of government.
At the federal level, most research concludes that immigration tends to be fiscally positive over the long term, especially when accounting for the children and grandchildren of immigrants.
At state and local levels, costs can exceed direct tax payments in some jurisdictions because unauthorized immigrants are generally ineligible for federal support programs but still use public services like emergency healthcare and education. A Congressional Budget Office analysis has found local costs sometimes outpace local tax contributions, though the full picture changes when indirect economic activity is included.
Labor Market Effects on U.S. Citizens
A common concern is that undocumented immigrants “steal jobs” or depress wages for American workers. Most comprehensive economic research finds little to no long-term negative effect on overall wages or employment for native-born workers. Labor market effects are nuanced — certain low-skilled sectors may see wage competition in the short run, but the broader economy benefits from expanded workforce and consumer demand.
In situations where policies drastically reduce undocumented immigrant labor — such as large-scale deportations — studies show negative consequences for native workers, including lower GDP, lost jobs, and wage declines across multiple income levels.
Social and Community Dynamics
Beyond economics, undocumented immigration affects community cohesion and public discourse. Some Americans view undocumented residents as competitors for public resources, contributing to political polarization and distrust. Integration challenges exist, especially without formal pathways to legal status or clear federal policy. At the same time, many undocumented families are deeply rooted in communities, raising children who are U.S. citizens and participating fully in local life.
In New Hampshire, state law limits cooperation between local law enforcement and federal immigration enforcement, and many undocumented residents remain outside of regular enforcement mechanisms.
Policy Implications and the Path Forward
Rigid enforcement alone — such as mass deportation or blanket workplace raids — carries economic risks. It can shrink the labor force, disrupt industries, depress consumer spending, and reduce tax revenues.
Economists and policy experts increasingly advocate for comprehensive immigration reform that includes legal pathways, labor protections, and integration measures — approaches shown to boost personal income, tax revenue, and job growth.
For Granite Staters, understanding the full economic impact of undocumented immigrants requires cutting through fear-driven rhetoric and focusing on data. These residents are not a faceless monolith; they play roles in the workforce, contribute to tax systems, and are woven into the social fabric of communities. Crafting smart, balanced policy at both the federal and state levels is essential to maximizing economic benefits while addressing legitimate concerns about governance, fairness, and social cohesion.
References:
National Economic Impacts
• Size of the undocumented population and workforce participation — Pew and other estimates show roughly 11–13.7 million unauthorized immigrants in the U.S., making up about 3–5 percent of the workforce.
• Economic contributions and labor force roles — Undocumented workers are concentrated in key sectors and their removal would shrink GDP, harm output, and disrupt labor markets.
• Effects on GDP, taxes, and federal budget — Most research indicates immigrants overall, including unauthorized ones, generate more in tax revenue than they consume over the long term, and their removal would reduce economic output and tax receipts.
• Tax contributions and spending power of undocumented households — Analysis finds undocumented immigrant households paid tens of billions in federal, state, and local taxes and have significant spending power that supports government services and markets.
• Labor force complementarity and wage effects — Evidence suggests undocumented and other immigrant labor complements native workers in many sectors, and deportations would harm labor demand and wages overall.
New Hampshire Specific Data
• Population estimates — Pew and state data show about 15,000 undocumented immigrants in New Hampshire in 2022, roughly 1 percent of the state’s population.
• Foreign-born and immigrant workforce share — Foreign-born residents (including all immigrants) account for ~7 percent of NH’s workforce, contributing significantly to household earnings and sectors facing shortages.
• Demographic and community contribution context — Immigrants — including noncitizens and undocumented people — are part of the broader immigrant presence in New Hampshire’s economy and communities.
Broader Context on Immigration Economics
• Economic consensus and overall impact — Comprehensive research by Migration Policy Institute indicates the broader effect of immigration is a net positive for the U.S. economy, though local fiscal effects vary.
Optional Further Reading / Extended Source Material
• Congressional Budget Office reports on immigration’s effects on federal revenue and budget.
• Migration Policy Institute state demographic profiles, including NH.
