Between January and July 2025, the U.S. labor force saw a significant change, as over 1.2 million immigrants left, according to preliminary data from the Census Bureau. This decline marks the first time in decades that the immigrant population has decreased, following a peak of 14 million undocumented individuals in 2023. The shift exemplifies the effectiveness of President Trump’s immigration policies, which include enhanced border security and programs to facilitate voluntary deportation.
Immigrants historically represent nearly 20% of the U.S. workforce, and their exit transforms critical sectors such as agriculture, construction, and healthcare. For instance, immigrants account for a substantial portion of workers in these industries: 45% of farm laborers, 30% of construction workers, and 24% of service workers. However, the departure of these workers has attracted controversy, particularly from liberal economists who argue that the removal of immigrants stifles job growth.
The assertion that immigrants are essential for job creation is misleading. The reality is that immigrants fill existing job openings rather than create new ones. In roles that demand a set number of hands—think farms or construction sites—the number of workers needed is fixed regardless of immigration status. Liberal claims that job declines are strictly a result of deportations fail to recognize that many undocumented workers are employed off the books and in cash transactions. Consequently, Bureau of Labor Statistics data doesn’t accurately depict the job landscape after illegal workers leave.
Employers in agriculture and construction frequently lament worker shortages, yet the underlying issue often lies in wage levels. Many Americans are unwilling to take jobs that pay below market value, leading to crops going unharvested and projects remaining unfinished. The failure to attract a willing workforce becomes more pronounced when businesses choose to pay less than living wages. Despite warnings of impending labor shortages, the market shows that raising wages can indeed attract domestic workers.
The argument that there are “jobs Americans won’t do” misses the mark. Decades ago, Americans filled roles in construction and food processing, jobs now dominated by undocumented workers due to lower wages. The influx of illegal immigrants led to depressed pay levels, which pushed many American workers out of these markets. If wages reflect the actual value of work, Americans can and will fill those positions.
As the undocumented population decreases, wage levels typically rise, making these jobs appealing once again. While some businesses may opt to automate in the face of increased labor costs, this reflects a functioning free market. The reality is that inefficiencies tied to exploiting low-wage labor should not persist.
Concerns over potential job losses due to automation following deportations are misplaced. If 100 undocumented workers leave and automation claims 70 positions, 30 remain for legal workers at improved pay. This not only creates opportunities but also elevates wage standards, benefiting American workers.
Critics argue that deportations lead to a $96.7 billion loss in tax revenue, a figure that warrants scrutiny. Almost half that estimate comes from sales and excise taxes, which legal workers will still contribute. Property taxes account for a further $10.4 billion, remaining steady regardless of the immigrant population. The real concern falls within the income tax domain, where reported losses derive in large part from illegal workers using counterfeit Social Security numbers. The genuine loss of tax revenue is significantly less than stated.
Replacing undocumented laborers with lawful workers at fair wages serves to boost tax revenue overall. An individual earning $20 an hour contributes notably more to income taxes compared to someone making $8 under the table. Moreover, payroll taxes are fully accounted for, with companies paying into unemployment insurance and workers’ compensation.
In summary, transitioning from an exploited illegal workforce to fairly paid legal employees enhances tax revenues, raises wages, and fortifies the labor market, countering the narrative that deportations harm the economy. The liberal contention of tax revenue losses fails when put against fundamental economic principles, showcasing that such policies do not erase jobs but instead restore them to American citizens.
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