A new study from France Terre d’Asile indicates that granting legal status to 250,000 undocumented workers in France could inject up to 3.3 billion euros annually into public coffers. The research underscores the economic advantages of formalizing these workers, who already participate in the informal economy, and urges reforms to current migration policies.
According to the NGO’s study, published November 7, 2025, legalization would directly boost public finances through income tax revenue and increased social security contributions. These workers currently contribute to national wealth without accessing the rights and protections afforded by formal employment.
The report notes that even Medef, France’s employer federation, acknowledges the need for more foreign workers to address labor shortages. Some projections suggest France will require 3.9 million foreign workers by 2050 to meet demands across various economic sectors.
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The Economic Cost of Irregular Status
The study describes the situation of undocumented workers as “economic hypocrisy.” While they play vital roles in agriculture, construction, and service industries, their informal status prevents the state from collecting social security contributions and income taxes that would otherwise be generated through legal employment.
Legalization would not only increase public revenue but also reduce spending on social assistance and housing support. It would facilitate better integration into the formal economy while providing improved social protection and labor rights.
Projected Financial Benefits
France Terre d’Asile calculates that legalizing 250,000 workers would yield approximately 2.9 billion euros annually in additional tax and social security revenue. This substantial increase would come while bringing workers out of informality, creating mutual benefits for both the individuals and the French economy.
Najat Vallaud-Belkacem, president of France Terre d’Asile, emphasized that legalization represents both a human rights issue and an economic opportunity. “A more humane and effective migration policy would bring in 3.3 billion euros per year,” she stated, “which serves France’s interests both economically and humanely.”
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Broader Economic Impact
The economic benefits of legalization extend beyond immediate tax gains. Formal status would enable full participation in the labor market, potentially boosting productivity in sectors like agriculture and construction that rely heavily on migrant labor.
From a macroeconomic perspective, legalization could stimulate local economies by increasing workers’ purchasing power and consumption. Savings on emergency support and additional social security contributions would likely outweigh the administrative costs associated with the regularization process.