American Workers Are Getting Raises Now That They Don't Have to Compete With Illegal Labor — Shocking Absolutely Nobody

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American Workers Are Getting Raises Now That They Don't Have to Compete With Illegal Labor — Shocking Absolutely Nobody

When the supply of workers willing to take below-market wages shrinks, market wages rise. This is not a complicated observation — it's what basic economics predicts. For years, applying that logic to immigration enforcement was treated as evidence of bigotry. The 2026 data is done being polite about it.

Wages in key blue-collar sectors are climbing faster than they have in years. James Carter, a former deputy assistant Treasury secretary and former deputy undersecretary of labor, laid out the specifics in a Wall Street Journal opinion piece. Construction wages are "growing at 3.1% through the first quarter of 2026 — above the sector's pre-enforcement baseline." For context, construction wages ran at just 2.5% annually between 2010 and 2017, during years when border enforcement was inconsistently applied at best.

That difference isn't a rounding error. It's real money in real paychecks for Americans who swing hammers and pour concrete for a living.

Private-sector wages overall are sitting at 3.4% — cooling slightly from recent highs — but the fact that construction is outpacing the broader market shows where enforcement is having the most direct impact. The sectors that relied most heavily on a labor pool with limited alternatives are exactly the sectors where American workers are now seeing the strongest gains.

The housing numbers tell a parallel story. A 2024 study by researchers Troup Howard, Mengqi Wang, and Dayin Zhang found that unauthorized immigration accounted for roughly 30% of house-price growth and approximately 20% of rent growth between 2021 and 2024. A Federal Reserve working paper corroborated the finding. Zillow data now shows national mortgage costs at their best level since August 2022, with housing affordability projected to improve across 49 of the 50 largest metro areas by year's end.

Forty-nine out of fifty. Pick any market on the map.

The argument made against enforcement for years — that removing illegal workers would spike construction costs, wreck housing affordability, and hollow out the labor market — was describing something real. It just had the cause backwards. It was the unrestricted supply of below-market labor that suppressed wages for American workers and drove up housing demand they couldn't afford to meet. Enforcement didn't create those conditions. It's correcting them.

American workers in the industries most exposed to illegal labor competition are making more money. The homes those workers couldn't afford are becoming more affordable. The economic case that was made for open borders was never built around their interests. The numbers are now making that visible.


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