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Significant Decline of Immigrant Workers in U.S. Labor Force

Immigrant workers in agriculture and construction

California, September 1, 2025

News Summary

President Trump’s immigration policies have resulted in over 1.2 million immigrants leaving the U.S. labor force. This shift impacts key sectors such as agriculture, construction, and services, which heavily rely on immigrant workers. As fears of deportation rise, labor shortages are emerging in states like California and Texas, raising concerns about the long-term economic consequences for industries that depend on immigrant labor. Analysts are urging for careful monitoring of the implications on the economy as this trend continues.

California – As of the Labor Day holiday, President Trump’s immigration policies have led to significant changes in the U.S. labor force, with more than 1.2 million immigrants reportedly leaving the workforce between January and July 2023. This troubling trend, highlighted by preliminary Census Bureau data analyzed by the Pew Research Center, includes both undocumented immigrants and legal residents, reflecting a dramatic shift in a labor market that traditionally relies heavily on immigrant contributions.

Immigrants make up nearly 20% of the entire U.S. workforce, playing pivotal roles across several sectors. They represent 45% of workers in the farming, fishing, and forestry industries, as well as 30% of construction workers and 24% of service workers. The recent data reveals a significant overall decline in the immigrant population for the first time after reaching a record high of 14 million undocumented individuals earlier in 2023.

The specifics behind the declining numbers of immigrant workers remain somewhat unclear. Analysts suggest various factors could be contributing to this downturn, including voluntary departures, heightened fears of deportation, and possible issues with data reporting. The Trump administration had previously indicated a commitment to deport millions of undocumented immigrants, predominantly focusing on individuals deemed “dangerous criminals.” Nonetheless, a considerable number of detainees processed by Immigration and Customs Enforcement (ICE) do not have criminal convictions. Despite this, illegal border crossings have reportedly decreased significantly in recent months.

Labor economist estimates indicate that immigrant labor typically applies to about 50% of job growth in the U.S. However, several states, particularly California and Texas, are beginning to experience pronounced labor shortages tied to immigration enforcement. In California, farm business managers have reported notably smaller crews due to fears surrounding possible ICE raids, leading to significant crop spoilage during peak harvesting seasons. In Texas, labor shortages have similarly impacted agricultural operations, resulting in significant economic disruptions as businesses struggle to maintain operations amid constant immigration scrutiny.

The ripple effects of these labor shortages extend to various sectors. Construction employment has decreased across numerous metropolitan areas, with the Riverside-San Bernardino-Ontario area experiencing the most substantial job loss, shedding 7,200 jobs, followed closely by 6,200 job losses in the Los Angeles area. The Service Employees International Union has conveyed that nearly half of long-term caregivers in California’s healthcare system are immigrants, raising alarms regarding upcoming labor shortages among home health aides.

Economists warn of long-term economic consequences if the pattern of immigration enforcement continues unabated. Industries that rely on immigrant workers—such as agriculture and construction—risk facing significant contractions if undocumented workers are effectively removed from the workforce. The continuing trend could further disturb the economic fabric of states like California, where undocumented immigrants generate around 5% of the state’s GDP; this figure climbs to 9% when including the economic multiplier effect.

Recent studies also point towards a 3.1% decline in private-sector employment in California following the commencement of immigration raids, with noncitizen women experiencing the sharpest drops in participation. If current immigration policies remain enforced, it will be essential to closely monitor the continued effects on labor forces and the broader economy.

Frequently Asked Questions

What are the main reasons for the loss of immigrant workers from the U.S. labor force?

The loss of immigrant workers may stem from voluntary departures, heightened fears of deportation, or potential issues with data reporting.

What sectors of the workforce are most affected by this decline?

Key sectors affected include agriculture, construction, and service industries, with immigrants constituting significant portions of the workforce in these areas.

How does immigrant labor impact U.S. job growth?

Immigrant labor typically accounts for around 50% of job growth in the U.S., demonstrating its critical role in supporting economic development.

What are the broader economic implications of this decline?

Persistent labor shortages due to immigration enforcement could lead to significant contractions in key industries, ultimately affecting the overall economy.


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STAFF HERE BEVERLY HILLS WRITER
Author: STAFF HERE BEVERLY HILLS WRITER

The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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