Immigrants, both with and without legal status, are vital to the economy of Wisconsin and other Great Lakes states, contributing significantly to taxes and the workforce.
A new report from Upwardly Global, a New York-based nonprofit, and the American Immigration Council highlights the economic impact of immigrants in the region. The report focuses on immigrants with legal or protected status, according to Upwardly Global CEO Jina Krause-Vilmar.
In 2022, immigrants in Wisconsin paid $3 billion in federal, state, and local taxes and had $3.3 billion in spending power. The report also shows that immigrants were responsible for nearly 18 percent of the state’s population growth between 2010 and 2022, helping to offset population declines in rural areas.
Krause-Vilmar stressed that population growth is crucial, especially as states like Wisconsin face challenges in replacing aging workers. The state’s older population is expected to strain elder care and health care services in the coming years.
“Immigrants are not only supporting population growth, but they are also vital to our workforce,” Krause-Vilmar said. “They are especially important in rural communities.”
In Wisconsin, immigrants make up 5.9 percent of the state’s workforce. They account for 11 percent of agricultural workers, 5 percent of entrepreneurs, and 9.5 percent of those working in science, technology, engineering, and math (STEM) fields.
Small and medium-sized businesses, often run by immigrants, are crucial to local economies, Krause-Vilmar added. “Immigrants are generating jobs, which benefit U.S.-born workers as well,” she said.
The Role of Immigrants Without Legal Status
The report also acknowledges the contributions of immigrants without legal status. According to the Migration Policy Institute, around 70,000 people in Wisconsin live without legal immigration status, with 47,000 of them employed. Many work in manufacturing, construction, and agriculture, contributing to the state’s economy in important ways.
University of Wisconsin-Madison professor Armando Ibarra noted that these figures likely underestimate the number of undocumented workers in Wisconsin, as many in the undocumented population are reluctant to engage with government authorities due to their immigration status.
Ibarra emphasized that Latino immigrants, many of whom are undocumented, are especially important to Wisconsin’s dairy industry. He estimates that over 10,000 undocumented immigrants perform 70 percent of the labor on the state’s dairy farms.
“This industry thrives because of immigrant labor, and most of these workers have unauthorized status,” Ibarra said. “It’s an open secret.”
Tax Contributions and Paradox of Inaccessibility
In addition to their labor contributions, immigrants without legal status in Wisconsin paid an estimated $240 million in taxes in 2022, according to the American Immigration Council. These tax payments help support social services, but, paradoxically, undocumented immigrants are ineligible for most of these services because they lack a valid social security number.
“There’s a contradiction,” said Ibarra. “These workers are paying state and federal taxes, but they cannot access the safety net they help fund.”
Ibarra also noted the frustration felt by many in the Latino community. “There should be no doubt that unauthorized immigrants contribute to the system, paying taxes while being excluded from benefits like Social Security,” he said. “They are essential to sustaining the economy and supporting the most vulnerable in society.”
In sum, immigrants—whether documented or not—are a crucial part of Wisconsin’s workforce and tax base, supporting both local economies and vital industries. Their contributions, however, often go unnoticed by the public systems they help sustain.
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