Amidst recent deportation actions initiated by President Donald Trump, multiple American industries reliant on immigrant labor are grappling with significant economic setbacks, according to affected business leaders. While the administration maintains that deportations primarily target criminals and drug cartel affiliates, business owners are experiencing a loss of crucial employees, thereby disrupting production and creating "anxiety and uncertainty" within their operations, as reported by EFE.
Rebeca Shi, Executive Director of the American Business Immigration Coalition in Illinois, emphasized that deportations are impacting immigrants across vital sectors such as agriculture, manufacturing, and healthcare. Despite the Trump administration's assurances that raids focus on violent criminals, Shi pointed out that these actions are affecting essential workers who play a critical role in the U.S. economy.
"Essential workers have vanished, and we're witnessing a 50% slowdown in our operations. Immigrants are immobilized by fear, opting to remain at home," Shi mentioned during a teleconference with leaders from various industries. This reduction in the workforce has directly impacted productivity, leaving thousands of job openings unfilled in sectors dependent on immigrant labor.
Among those who participated in the conference, Matt Teagarden from the Kansas Cattlemen’s Association highlighted the indispensable role of immigrant labor in the cattle and general agriculture industries. "While violent criminals must be deported, we also need pathways to legalize law-abiding immigrants who contribute to our economy," Teagarden argued, advocating for immigration reform to address labor shortages.
The dwindling number of immigrant workers could also severely impact the U.S. Gross Domestic Product (GDP). According to Shi, immigrants constitute between 25% and 50% of the workforce in essential industries and contribute over $80 billion in taxes annually. Their absence could shrink the GDP by 4.2%, further exacerbating labor shortages in sectors like healthcare, construction, and manufacturing, which currently face a 1.7 million job deficit.
Impact on Agriculture and Healthcare
One of the most affected sectors is agriculture. Tony DiMare of DiMare Fresh, which grows tomatoes in California and Florida, explained that the agricultural industry heavily relies on immigrants for manual harvesting. "Americans are unwilling to take these jobs, so we turn to immigrants, mostly through temporary programs. However, it's increasingly difficult to find workers with proper documentation," DiMare stated.
Another critical sector is elder and sick care, where immigrants make up 80% of the workforce due to a lack of interest among Americans. Adam Lampert, CEO of a Texas-based home care company, noted that deportations will drive up wages as companies try to attract workers, potentially causing inflation within the industry. "This sector is rapidly expanding, and we will need a million nurses in the coming years. We can't find enough domestic workers, so we must look beyond our borders," Lampert explained.
Call for Comprehensive Immigration Reform
Impacted business leaders are beginning to rally for a comprehensive immigration reform to address long-term issues. The American Business Immigration Coalition has launched the campaign "Secure Our Borders, but Also Protect Our Workforce," aimed at the White House and Congress. The coalition stressed the urgent need for a balanced, bipartisan solution to ensure U.S. competitiveness and global leadership.
In addition to the deportations, Trump signed several orders last Monday, including measures to designate drug cartels as foreign terrorist organizations, declare a national emergency at the U.S.-Mexico border, and end birthright citizenship. As Trump's immigration policies continue to unfold, business leaders warn that the nation could face a deeper labor crisis if solutions are not found to sustain the workforce driving key economic sectors.
FAQs on Economic Impact of Immigration Policies
How do deportations affect U.S. industries?
Deportations remove essential immigrant workers from sectors like agriculture, healthcare, and manufacturing, leading to reduced productivity and economic losses.
What role do immigrants play in the U.S. economy?
Immigrants make up a significant portion of the workforce in key industries and contribute billions in taxes, supporting economic growth and stability.
What is the potential impact on the U.S. GDP?
The absence of immigrant workers could reduce the GDP by 4.2%, further intensifying labor shortages in critical sectors.