President Trump’s push to arrest undocumented immigrants at work sites has sparked massive protests, threatening a region just starting its recovery from January’s firestorms. The crackdown could come at a price for industries across Los Angeles and California that have become increasingly dependent on immigrant workers.
According to Nicholas Eberstadt, a political economist at the American Enterprise Institute, foreign-born Californians account for one-third of all workers in certain sectors, filling jobs that native-born Americans are unlikely to take. The idea that unemployed native-born Americans will pick up the labor slack has been tested during the post-pandemic boom, with 12 million open jobs and 6 million men aged 25-54 who had dropped out of the labor force.
The surge of migrants since 2021 has lifted the US and California economies by filling vacant jobs. A research paper found that if all undocumented immigrants in the US were deported, California would see average annual wages decrease by $970, with Florida seeing a decrease of $560.
Los Angeles-area hotel workers urge employers to protect them from Trump deportation threats. The local economy has already taken a hit from tariffs announced in April, resulting in dwindling job opportunities at the Port of Los Angeles and neighboring ports.
The decline in shipping has ripple effects on L.A.’s economy, with businesses near the ports relying on a robust community of workers to frequent their establishments. Deploying the National Guard is also having an impact on the tourism industry, with tourists concerned about being detained or experiencing disruptions.
Even if the immigration turmoil ends soon, the federal crackdown hurts Los Angeles’ brand as a tourist destination, which heavily relies on its status as a global hub with diversity of cuisine, people, and experiences.
Source: https://www.latimes.com/business/story/2025-06-10/how-the-federal-immigration-raids-could-disrupt-californias-economy