Immigration is important to the Texjas economy –
22.6% of the labor force is foreign-born. This group includes legal permanent residents and unauthorized immigrants. The
Migration Policy Institute estimates there are nearly 2 million unauthorized immigrants in Texas. MPI defines “unauthorized” to include people who entered the U.S. without authorization, those who overstayed a visa, people with a pending asylum application and those with temporary statuses such as Deferred Action for Childhood Arrivals, parole or Temporary Protected Status. This is broader than what most would consider “undocumented” or people without legal status. Many people with pending asylum cases or temporary statuses have work permits and are legally allowed to remain in the U.S.
Of the nearly 2 million unauthorized immigrants in Texas, 45% have lived in the U.S. for 20 years or more. About 69% are employed, and 29% work in construction. That’s why the Federal Reserve Bank of Dallas’
Texas Business Outlook Survey from October 2025 is concerning. In it, 20% of Texas businesses surveyed said immigration policy changes will hurt their ability to hire foreign-born workers. The share is likely higher – the survey excludes the construction and agriculture industries, which employ many immigrants. The Dallas Fed notes that the chilling effect isn’t driven only by enforcement; the cancellation of legal statuses such as TPS and slower processing for legal immigrants have also contributed.
Federal immigration enforcement still plays a major role. According to The Texas Tribune, 1 in 4 ICE arrests in the first six months of this year occurred in Texas. That’s significant for a state that relies so heavily on foreign-born workers.
Enforcement efforts in Los Angeles and Chicago have understandably drawn more attention. But Texas is the nation’s second-largest economy. The negative outlook in the Dallas Fed survey raises the question of why enforcement in Texas targeting these workers isn’t receiving more scrutiny.