LA County Data: Undocumented Workers Account for 17% of GDP, $254 Billion in Economic Output

Undocumented workers in Los Angeles County generate $253.9 billion in annual economic output, accounting for roughly 17% of the region's total Gross Domestic Product. They directly hold over 630,000 jobs and support hundreds of thousands more through supply chain demand and household spending. This evidence pack examines the data behind these figures, the methodology used to calculate them, and the specific industries most reliant on this labor force.[1][3]

The data stems from a comprehensive 2026 report commissioned by the Los Angeles County Department of Economic Opportunity (DEO) and the Los Angeles County Economic Development Corporation (LAEDC). Researchers utilized adjusted workforce estimates and the IMPLAN input-output model to quantify the cascading economic effects of undocumented labor across the county. The findings reveal a deeply integrated workforce that fundamentally underpins the region's economic engine.[1]

How the economic contribution breaks down: The $253.9 billion figure is not limited to direct production. It includes $158.8 billion in direct output, $49.6 billion in indirect output (supply chain effects), and $45.4 billion in induced output (household spending by workers). Together, this activity generates $80.4 billion in labor income and accounts for $147.4 billion in value-added to the local economy.[1]

The employment multiplier effect is substantial. While undocumented workers directly hold roughly 630,120 jobs in Los Angeles County, their economic activity sustains an additional 194,800 indirect jobs and 237,630 induced jobs. Our analysis of these figures indicates that for every 10 undocumented workers directly employed, nearly 7 additional jobs are supported in the broader regional economy. This highlights how undocumented labor not only fills direct positions but also creates employment for citizens and non-citizens alike.[1][3]

Sectoral reliance on undocumented labor varies significantly, with certain industries showing deep structural dependence. Agriculture leads the county with 31% of its total workforce comprised of undocumented individuals. Construction follows closely at 28.7%, while manufacturing relies on undocumented labor for 17.5% of its workforce. Wholesale trade (16.0%) and retail trade (15.4%) also show high concentrations.[1]

In absolute numbers, the retail trade sector employs the largest concentration of undocumented workers in the county, accounting for 125,692 individuals, or 23.4% of the total undocumented workforce. Construction employs nearly 87,000 undocumented workers (16.2%), followed by other services (14.5%) and manufacturing (13.3%). These four industries alone account for nearly two-thirds of all undocumented employment in Los Angeles County.[1]

The economic vulnerability is not evenly distributed across the county. Geographic analysis reveals that communities with high concentrations of Latino immigrants, Spanish speakers, and renter households face disproportionate exposure to labor disruptions. Neighborhoods such as Mission Hills-Panorama City, Bell, Pico Rivera, and Southeast Los Angeles serve as the primary engines for this workforce, making their local micro-economies highly sensitive to shifts in immigrant labor participation.[1]

The broader context of California's workforce aligns with these local findings. Pew Research Center estimates indicate that unauthorized immigrant workers represent approximately 7.2% of California's total labor force, with heavy concentrations in agriculture, construction, and leisure and hospitality. Los Angeles County, with its massive economy and large immigrant population, serves as a concentrated microcosm of these statewide trends.[2]

Where the evidence is strong: The direct employment figures and industry concentrations are robust, grounded in demographic data and adjusted workforce estimates from institutions like the USC Equity Research Institute. The identification of highly reliant sectors—such as agriculture and construction—is consistently supported by multiple independent demographic analyses.[1][2]

Where the evidence is thinner: The IMPLAN input-output model used to calculate indirect and induced economic effects relies on standardized assumptions about wages, hours worked, and spending patterns. The report itself notes that undocumented workers often work fewer hours, hold seasonal jobs, or earn below industry-average wages. If the model does not perfectly adjust for these factors, it could overstate labor income and value-added.[1][3]

Furthermore, induced economic effects are calculated based on local household spending. Undocumented workers may remit a portion of their earnings to family members outside the local economy. These remittances create economic leakages that reduce local spending, potentially leading to an overestimation of the induced job creation and output figures. The exact scale of these remittances remains difficult to quantify with precision.[1][3]

Despite these methodological limitations, the sheer scale of the baseline numbers confirms that undocumented labor is a load-bearing pillar of the Los Angeles County economy. Removing or disrupting this workforce does not simply open jobs for others; it fundamentally contracts the region's economic output, shrinks the tax base, and eliminates the secondary jobs supported by immigrant spending and supply chain demand.[1][3]

Ultimately, the data illustrates a complex economic reality: Los Angeles County's status as a global economic powerhouse is inextricably linked to the labor and consumption of its undocumented population. Understanding this relationship is critical for policymakers, business leaders, and residents navigating the economic future of the region.[1][3]