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Undocumented construction workers essential to building America: Reports

Grant Cameron
Undocumented construction workers essential to building America: Reports

The U.S. construction industry is heavily dependent on immigrant labour as well as undocumented workers who pay tens of billions of dollars in federal, state, local and payroll taxes, in addition to mortgage payments and rent.

The statistics are especially relevant in light of the pledge by U.S. president-elect Donald Trump to use the 1798 Alien Enemies Act to begin the largest deportation in American history, expelling millions of undocumented workers and ending temporary protected status for immigrants who can’t safely return home.

The reports, based on U.S. Census Data and other surveys, show nationwide there are five million undocumented working immigrants, including nearly 1.6 million in the construction industry.

The Washington, D.C.-based Center for American Progress, a public policy research and advocacy organization, determined construction labourers are the largest share of undocumented workers at 445,800; carpenters are second at 225,600; painters and paperhangers are third at 167,300; and roofers are fourth at 75,600.

The figures show one in five undocumented workers are employed in a construction-related sector and more than one in 10 construction workers are undocumented – double the rate of workers as a whole.

“As the country looks to the future and charts a course for economic recovery, it is also important to recognize the outsize contributions to the economy provided by construction – and, in particular, residential construction,†the report states. “Dollars spent in residential construction have some of the highest rates of return for U.S. gross domestic product and boost tax revenue.â€

Indeed, each year undocumented workers and their households pay $12.9 billion in federal tax contributions and $7.7 billion in state and local taxes. Their annual contribution in payroll taxes is $4.4 billion.

Meanwhile, undocumented immigrants working in the construction sector own 393,500 homes, paying $3.6 billion in mortgage payments and $11.6 billion in rental payments annually.

In New York City, 63 per cent of the construction workforce are immigrants and it is estimated that 40 per cent of those are undocumented. In Texas, nearly half of the construction workforce, or 400,000 workers, are undocumented, says a report by the University of Texas and the Workers Defense Project

Researchers say in Texas, many undocumented workers don’t show up in statistics because they’re hired through a network of subcontractors who pay them in cash and classify them as independent contractors instead of employees.

A University of Michigan paper says subcontractors favour the practice of hiring undocumented workers as it saves them money and they can produce more competitive bids. It is estimated U.S.-born construction workers earn an average of $3.12 more per hour than undocumented workers.

The National Immigration Forum (NIF) reports the construction industry would not be able to function without immigrant labour and undocumented workers.

“Migrant labour is indispensable to the construction industry, but because of narrow options for work authorization, almost a quarter of its workforce is undocumented,†the authors wrote, noting that improving the employment-based visa system is critical to solving the industry’s labour shortage.

“The construction industry’s large share of immigrant labour, particularly undocumented immigrants, is important to acknowledge, because of this group’s vulnerability to employment misclassification.â€

The National Association of Home Builders states in a report that reliance on foreign-born construction workers is evident, with 65 per cent of builders reporting some or serious shortage of workers that do finishing carpentry. The shortage is also particularly acute for bricklayers and masons.

As for solutions, many go against the grain of the upcoming Trump administration policy. The Baker Institute, for example, recommends the government establish pathways for migrants with construction visas that give legal status to Mexican and Central American undocumented workers already in the U.S.

Participants at a recent workshop recommended a limited-term visa for undocumented construction workers would allow them to earn income and return to their home country once the visa period ends.

“This proposal not only tackles the issue of undocumented workers but also helps prevent the use of fake IDs and subcontracting schemes that undermine labour standards,†the institute said. “By legalizing the status of these workers, their working conditions can be improved. This strategy can also bring additional benefits, such as enhancing tax revenue and contributing to a more regulated workforce.â€

The NIF notes construction is one of the industries that can not satisfy its labour needs with native-born U.S. workers.

There are several issues with the present visa process that make it difficult to meet the labour shortage in the construction industry, the organization states, namely that it leaves employers uncertain as to how many immigrant workers they can hire, while the quota system and process are problematic.

“The inadequacies of these employment-based visas incentivize unlawful immigration for both employees and employers. Generally, immigration needs to be a greater priority for U.S. lawmakers, and the discussion must be driven by facts and empirical evidence.â€

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