SKILLS BLOG

Building a Stronger Workforce Means Embracing Immigrant Contributions

By Robert Espinoza, February 25, 2025

At National Skills Coalition (NSC), we believe that every working person deserves access to skills training, good jobs, and economic prosperity. They also deserve dignity and respect—no matter where they were born. Immigration has long been a cornerstone of America’s success, fueling economic growth and innovation. Most of us live in communities where immigrants are part of our families, neighborhoods, and workforces—or we are immigrants ourselves. Whether we realize it or not, we all benefit from their work.

Unfortunately, today’s immigration policies aren’t keeping up with our evolving economy or with the realities of most working people and small and mid-sized local businesses—the focus of NSC’s mission. These outdated policies create workforce gaps and push millions of immigrants into uncertainty. Over time, they weaken our economy by limiting opportunities for both businesses and workers.

As policymakers at the federal and state levels debate the future of immigration, it will remain critical to pursue smart reforms that strengthen our workforce, support businesses and economic growth, and uphold our nation’s values.

Here is what National Skills Coalition believes—and what we will do.

Immigrants Power Our Economy

Immigrants make up 19% of the U.S. workforce, meaning nearly one in five working people in our economy is an immigrant. They are the backbone of critical industries like healthcare (18.6%), construction (13.7%), agriculture (12.7%), and technology (20%), among others.

Labor shortages persist across these sectors because of low job quality, limited access to training, caregiving responsibilities, retirement trends, demographic shifts, and other barriers. Wage stagnation and concerns about automation further discourage workforce participation in certain industries. With fewer contributions from immigrants, businesses will continue to struggle to find skilled workers, and communities will lose essential services.

Consider the direct care workforce, which is larger than other single occupation in the country and where immigrants comprise one-third of home care workers, an essential workforce that supports a rapidly growing population of older people to live independently in their homes. The direct care sector alone is expected to have 8.9 million job openings in the next decade. Without enough trained and well-supported workers to meet this demand, many families — frankly, most families — will struggle to find care for parents and family members with disabilities.

Beyond direct employment, immigrants play a vital role in entrepreneurship. Approximately 18% of employer businesses in the U.S. are immigrant-owned, creating jobs, and driving innovation. Research also shows that Immigrant households contribute $2.1 trillion in income annually, with over $382 billion in federal taxes and $196 billion in state and local taxes—a direct investment in the public infrastructure we all rely on. Without immigrants, this economic fuel could begin dry up.

The High Cost of Harsh Immigration Policies

Despite their undeniable contributions, immigrants are increasingly targeted by policies that spread fear and division. Deportations of undocumented people are devastating families, worsening labor shortages, and disrupting local economies. Hyperbolic, inflammatory rhetoric often fuels these actions.

History has also shown that harsh immigration policies hurt everyone. As UnidosUS recently documented, the recent and proposed raids could have severe economic consequences, including job losses, increased inflation, a reduced Gross Domestic Product, and added government expenses funded by taxpayer dollars.

In Alabama and Georgia, for example, anti-immigrant laws led to a mass exodus of workers, leaving crops to rot in the fields and businesses scrambling for employees. In agriculture, where undocumented workers hold 22% of all jobs , deportations could lead to higher food prices due to a diminished labor force. Similarly, in construction—where undocumented workers fill 15% of all jobs —fewer working people would mean slower homebuilding and push housing costs higher at a time when affordable housing is already scarce. In direct care, unstaffed jobs could leave older people and people with disabilities have no care, which is catastrophic.

The chilling effect of these policies extends beyond the workplace. In 2023, one in seven adults in immigrant families avoided safety net programs because they feared jeopardizing their legal status. This unnecessary fear prevents families from obtaining healthcare, education, and workforce training – the very tools that help people succeed and contribute to the economy.

Immigration Reform That Works for All Americans

Punitive policies create unnecessary harm and ultimately draw attention from what our country truly needs at this stage: practical, common-sense solutions that recognize immigrants’ essential role in our workforce and communities. National Skills Coalition supports the following policies to ensure a stable, skilled workforce while upholding the dignity of all individuals:

1. A Pathway to Citizenship for Undocumented Workers

Providing a path to legal status and eventual citizenship for undocumented immigrants would stabilize our workforce, keep families together, and allow working people to fully participate in the economy. Policies like the American Dream and Promise Act aims to provide permanent protections to people who arrived in the U.S. as children, known as “Dreamers,” and to those granted Temporary Protected Status (TPS) due to unsafe conditions in their home countries.

2. Investments in Workforce Training and Career Pathways

Immigrants, like all working people, need opportunities to upskill and advance their careers. That’s why we advocate for federal investments in skills training, career pathways, and English language programs through major legislation like the Workforce Innovation and Opportunity Act (WIOA) and the Higher Education Act. These programs help immigrant workers fill in-demand jobs while boosting overall economic productivity.

3. Inclusion of Immigrants in Workforce and Economic Investments

Federal workforce initiatives, such as the Infrastructure Investment and Jobs Act, should explicitly recognize the critical role of immigrants in building and maintaining our nation’s infrastructure. Immigration-inclusive workforce policies ensure that federal and state investments reach workers who are already essential to the economy.

4. Protection for Immigrant Workers in the Event of Policy Changes

The Supreme Court could rule against the Deferred Action for Childhood Arrivals (DACA) policy, which allows certain undocumented individuals who were brought to the country as children to work legally. Policymakers could also attempt to reinstate the “public charge rule,” which penalizes immigrants seeking permanent residency if they are deemed likely to rely on public benefits. If these threats materialize, Congress must act immediately. DACA recipients and TPS holders need permanent solutions—not temporary protections subject to political shifts. Additionally, immigrants must have continued access to education and workforce training programs without fear of legal repercussions.

Why Policymakers Must Act Now

With millions leaving the labor force due to retirement, shifting demographics, and economic shifts, industries nationwide face critical labor shortages. Ignoring the contributions of immigrants—who already fill essential jobs—will only deepen these shortages and slow economic growth.

Moreover, failing to recognize their role harms those who have built our economy and culture, many with deep roots in our communities. Instead of divisive policies that push people into the shadows, we need bipartisan workforce reforms that strengthen our economy, support working people (including immigrants), and ensure America remains a global leader. Smart policies can unlock opportunities, address labor gaps, and help businesses thrive.

At National Skills Coalition, we understand immigration is complex, but we have a long history of supporting policies that uplift immigrant working people. For years, through policy analysis and education, we’ve produced research, published articles, and hosted discussions at major events, including a dedicated session at our upcoming Skills Summit this May in Washington, DC. We’ve shared recommendations with policymakers across the aisle, emphasizing that immigration is a core workforce issue requiring dedicated attention and balanced solutions.

In May, we will release a detailed issue brief underscoring these ideas to further reach our national audiences and shape the public conversation. We will also continue to provide updates on key immigration policies, workforce trends, and best practices for supporting immigrant workers.

Our nation’s history proves immigration is not a burden—it is a strength. By embracing policies that invest in immigrants’ contributions, we can build a more prosperous future for all Americans.