Impact of Mexican Labor in the US Economy

In 2024, 4.7% of US employment was Mexican workers, significantly impacting sectors like construction and agriculture. Immigration policies may affect both economies.


Impact of Mexican Labor in the US Economy

Only 5 percent of Mexicans work in the agricultural sector, but they represent the highest workforce in many states of the USA. In 2024, Mexican workers accounted for 4.7 percent of total employment in the USA. More than 7.5 million workers were Mexican in that year, with 64 percent being men. The main sectors they work in are construction (23.5 percent), professional services (13.7), food, hospitality, and recreation (13.7), manufacturing (10.7), and trade (9.1).

In California, 1 in every 1.8 male agricultural workers is Mexican, and 1 in every 3.2 works in the construction sector. Additionally, 1 in every 2.7 domestic workers is Mexican. In Texas, 1 in every 3.3 workers is Mexican in the construction sector. One in every 6.3 women works in the manufacturing sector and one in every 3.6 works as a domestic employee.

Recent immigration policies in the USA will significantly affect both nations. Moreover, as a percentage of state GDP, it exceeds 10 percent in four federal entities: Chiapas (15.6), Guerrero (13.8), Michoacán (10.9), and Zacatecas (10.6). Workers who send remittances are mostly undocumented and live in certain regions in the United States. In the agricultural and construction sectors, they represent 16.6 and 14.1 percent, respectively.

In Texas, Mexican workers make up 29 percent of construction sector workers, and in Colorado, up to 41 percent. On the other hand, the increase in wages will raise production costs. For Mexico, this will mean a lower receipt of remittances, which have a positive impact in various federal entities. On the USA side, there will be a labor shortage in key sectors, leading to an economic slowdown.

The annual amount of remittances exceeds 60 billion dollars and has a significant impact on private consumption and GDP in many federal entities. The proposed solution to this problem would be the regulation of migrant workers, many of whom have been in the USA for decades and are an important part of its economic development.

In summary, remittances play a crucial role in the Mexican economy and have a critical role in the economy of many states in the United States.