Texas Businesses Rethink Their Use of Immigrant Labor
A recent study from the Dallas Fed indicates a significant shift among Texas businesses regarding their dependence on immigrant workers. It turns out that one in five companies has decreased their reliance on “workers from other countries.” That’s about 20%, which is a noticeable increase from just 2% back in February 2024.
On a related note, only 13% of businesses reported increasing their use of immigrant labor last year, a sharp drop from 41% in February 2024. This dramatic transition could be seen as a positive trend for American families and communities. Yet, there’s a catch: a staggering 68% of companies believe their dependence on foreign workers will “stay the same.”
Construction firms, in particular, have their own strategies to employ undocumented workers with minimal legal repercussions. Often, they turn to subcontractors and staffing agencies that misrepresent the legal status of the workers. While this change might seem favorable, many companies are still pushing for federal measures to make it easier to hire foreign labor. They cite concern over the growing bargaining power of American workers and are hesitant to invest in advanced construction techniques or technology.
A group of construction companies from Texas even expressed their concerns to D.C. Republicans in mid-February. Reports suggest their requests were rather alarming: they highlighted that the construction sector exemplifies the clash between current immigration policies and the economic need for lower prices, as well as the political need to maintain control of Congress. There’s worry that disruptions to labor-intensive industries might jeopardize the progress Republicans have made with Latino voters, largely thanks to Trump’s economic strategies.
Johnny Vasquez, who runs the Rio Grande Valley Builders Association, raised a serious warning about the upcoming presidential election in 2024. He suggested that if current policies remain, Republicans could lose valuable support. He simply stated, “For me and for the association, we need workers, American or not. All we need are workers.”
However, the White House has dismissed this appeal. Abigail Jackson, White House Press Secretary, told Politico that the nation is not lacking brains or talent among Americans to grow the workforce. She emphasized President Trump’s commitment to creating jobs for Americans while insisting on the enforcement of immigration laws.
Jackson also stressed that their agenda is focused on higher wages, lower costs, and expanded opportunities. Reports suggest that the focus on American workers is translating into better salaries for many, including swing-voting Latinos in Texas.
According to a report from December, the construction industry is witnessing substantial wage growth. The analysis noted that the current labor shortage is driving up compensation across various commercial projects, making it challenging for construction companies to fill essential positions. In fact, job openings have created a seller’s market for skilled workers, allowing for substantial negotiation on salaries and competitive pay packages.
Looking ahead, wages for entry-level construction workers are expected to surge by 16% to around $52,000 by 2025. However, other estimates present a more measured outlook. The average pay for construction workers in Texas stood at $37 an hour in December 2025, slightly up from $36 per hour in December 2024.
Strikingly, construction wages remained stagnant from 2019 to 2024 due to high inflation, according to reports from South Texas News in December.
