Arizona’s Economy Depends on Immigrants: The Numbers Tell the Story

What happens to Arizona's economy when thousands of workers, consumers, and business owners face the threat of being pushed out of their communities? The consequences don't stop with the families directly affected. They can ripple through businesses, industries, and local economies, putting jobs and economic growth at risk for all Arizonans. 

New data from the Economic Policy Institute (EPI) reveals just how much is at stake. Immigrants make up 16% of Arizona's workforce, contribute more than 15% of the state's economic output, and earn nearly $40 billion in household income. Immigrant Arizonans also account for more than 1 in 5 entrepreneurs in the state. These numbers underscore just how interconnected our economy is — and why disruptions to any part of it can have far-reaching consequences. 

But behind these numbers are our neighbors, coworkers, friends, and family members — Arizonans who have built lives, raised families, opened businesses, and contributed to their communities. As federal immigration enforcement intensifies, the uncertainty and disruption reach far beyond the individuals directly targeted. When families are uprooted, businesses lose workers and customers, and communities lose stability, the economic consequences affect all of us. Arizona's economic future is inseparable from the people who call this state home. 

Immigrant Workers Help Power Arizona's Economy 

Arizona's economy depends on a diverse workforce, and immigrant Arizonans are an essential part of it. According to EPI, approximately 984,000 immigrants call Arizona home, representing 13.2% of the state's population. Nearly half are naturalized U.S. citizens, and another 560,000 U.S.-born Arizonans live with at least one immigrant parent. 

Immigrant workers account for 16% of Arizona's workforce and contribute 15.2% of the state's economic output. Their contributions are particularly significant in industries that support Arizona's growth and everyday needs. 

Immigrants make up: 

• 37% of workers in agriculture, forestry, fishing, and hunting 

• 26% of workers in construction 

• 22% of workers in manufacturing 

• 20% of workers in other services 

• 19% of workers in professional and business services 

These numbers tell an important story about Arizona's economic interdependence. From the food on our tables to the homes we live in, immigrant workers help sustain industries that all Arizonans rely on. 

When businesses lose workers, the consequences can extend beyond individual jobs. Construction projects can face delays, agricultural operations can struggle to meet labor needs, and employers may find it harder to maintain production or expand their businesses. Those disruptions can affect prices, availability of goods and services, and economic opportunities throughout the state. 

Immigrant Households Support Businesses Across Arizona 

The economic contributions of immigrant Arizonans extend well beyond the workplace. As consumers, immigrant households help sustain businesses and support jobs in communities across the state. 

According to EPI, immigrant households in Arizona earn approximately $39.4 billion annually. That income supports families while generating demand for housing, groceries, transportation, childcare, restaurants, and other goods and services. 

Consider what happens when a family spends money at a neighborhood grocery store or restaurant. That spending helps businesses pay employees, purchase supplies, and keep their doors open. Those businesses, in turn, support other workers, suppliers, and families. 

This interconnected economic activity is one reason immigration enforcement can have consequences beyond those directly affected. 

When families face the threat of separation, job loss, or deportation, household spending may decline as income becomes less stable or families become reluctant to participate in everyday activities. Local businesses can lose customers, and the effects can spread through communities. 

For Arizona's economy, the loss of workers is only part of the equation. The potential loss of consumer spending matters, too. 

Immigrant Entrepreneurs Create Jobs and Economic Opportunities 

Immigrant Arizonans aren't just filling jobs. They're creating them. 

According to EPI, Arizona is home to approximately 76,000 immigrant entrepreneurs, representing 21.9% of all entrepreneurs in the state. 

These entrepreneurs operate businesses, provide essential goods and services, and create employment opportunities for other Arizonans. From neighborhood restaurants and retail shops to construction companies and professional services, immigrant-owned businesses contribute to the economic vitality of communities throughout Arizona. 

When immigrant entrepreneurs succeed, the benefits can extend throughout the community, supporting employees, customers, suppliers, and other local businesses. 

And when immigration enforcement creates uncertainty for business owners, those effects can reach the workers and communities that depend on their businesses. 

What's at Stake for Arizona's Economy? 

The numbers make clear that immigration policy is also economic policy. 

When immigrant Arizonans account for one in six workers, more than one in five entrepreneurs, and a significant share of the state's economic output, disruptions to immigrant communities can have consequences throughout the economy. 

Those consequences can take several forms. 

Businesses may struggle to find and retain workers, particularly in industries that depend heavily on immigrant labor. Families facing uncertainty may reduce spending, affecting local businesses and the jobs they support. Entrepreneurs may delay investments or expansion plans when the future of their businesses or families becomes less certain. 

These effects don't occur in isolation. A construction company that loses workers may delay a housing project. A restaurant that loses customers may cut employees' hours. A small business owner facing uncertainty may put plans to hire additional workers on hold. 

Over time, disruptions like these can weaken economic activity and create challenges for communities already confronting rising costs and workforce needs. 

And the economic consequences aren't limited to immigrants. They can affect U.S.-born workers, business owners, consumers, and families across Arizona. 

The EPI data establishes the scale of immigrant contributions, even though it does not by itself quantify the economic losses from immigration enforcement. What it makes clear is that the stakes extend far beyond immigration policy alone. 

Arizona's Economic Future Depends on All of Us 

Arizona's economic strength comes from the people who live, work, raise families, and build businesses here. 

Immigrant Arizonans are an integral part of that story. Their work supports essential industries, their spending sustains local businesses, and their entrepreneurship creates opportunities for others. Their families are part of the communities, schools, and neighborhoods that make Arizona home. 

As policymakers debate immigration enforcement, the economic consequences deserve serious consideration. Policies that create instability for workers, families, and businesses can carry costs that ripple throughout the state. 

Arizona cannot separate the well-being of immigrant communities from the well-being of its economy. A stronger, more prosperous Arizona depends on recognizing that our economic future is shared.