The Immigrant Economy
Immigrants play a critical role in Pennsylvania’s economy, contributing billions in taxes annually while supporting local businesses, industries, and communities. A recent Axios Pittsburgh report highlights that immigrants in Pennsylvania paid more than $6.6 billion in taxes in 2023, with $2.5 billion going to state and local governments and $4.1 billion in federal taxes. These numbers underscore the economic importance of immigrant workers and entrepreneurs, particularly as Pennsylvania faces workforce shortages and an aging population.
Immigrant Contributions to Pennsylvania’s Economy
Pennsylvania is home to approximately 900,000 immigrants, who make up a significant portion of the state’s workforce. They are heavily represented in key industries such as healthcare, education, technology, and manufacturing—sectors essential to the state’s economic growth. Many immigrants also work in agriculture, hospitality, and construction, filling positions where labor shortages persist. Beyond employment, immigrants contribute as business owners and entrepreneurs, generating billions in revenue and creating jobs for U.S. citizens and other workers. According to the American Immigration Council, immigrants in Pennsylvania have a spending power of over $19 billion, fueling local economies through consumer spending and investments.
The Impact of Immigration on State and Local Budgets
One of the most significant takeaways from the Axios report is the large amount of tax revenue generated by immigrants, which helps fund public services, infrastructure, and social programs. The $2.5 billion in state and local taxes collected from immigrants in 2023 supports critical needs such as:
Public education
Healthcare services
Transportation and infrastructure projects
Community development initiatives
Contrary to common misconceptions, immigrants—including those without legal status—pay taxes through income tax, sales tax, and property tax, even if they do not have access to all the benefits of these programs.
How Immigration Policy Affects Pennsylvania’s Economy
As Pennsylvania deals with an aging workforce and labor shortages, immigration reform could be a key solution to sustaining economic growth. Policies that expand work visas, streamline green card processing, and offer pathways to legal residency can help fill critical labor gaps and keep the state’s economy strong. For businesses looking to hire immigrant workers, visa programs such as H-1B (skilled workers), TN (Canadian and Mexican professionals), and EB-2 NIW (National Interest Waivers) are essential tools. Additionally, the provisional waiver program (I-601A) and family-based immigration petitions allow immigrants to continue contributing to their communities while adjusting their legal status.
The data from this report makes it clear: immigrants are essential to Pennsylvania’s economy, workforce, and tax base. Their contributions extend beyond labor—they are entrepreneurs, taxpayers, and community members driving economic prosperity.
For Pennsylvania businesses, policymakers, and residents, supporting fair and effective immigration policies can help the state address labor shortages, sustain tax revenues, and ensure long-term economic stability.
If you have questions about immigration options for workers, family sponsorship, or business visas in Pennsylvania, contact our law firm today for trusted guidance.