A federal immigration crackdown targeting undocumented workers is raising alarms across Los Angeles, where the local economy relies heavily on immigrant labor.
On June 10, the LA Times reported that the Department of Homeland Security’s large-scale enforcement actions could severely disrupt industries such as construction, apparel manufacturing, and logistics—sectors densely populated by undocumented and foreign-born workers.
According to the report, industries including construction, hospitality, healthcare, and agriculture would not function without foreign labor. Nicholas Eberstadt, a political economist at the National Bureau of Economic Research, noted, “The U.S. economy is increasingly dependent on foreign-born workers, and this is especially true in California. Nationally, one in five workers is foreign-born, but in California, it’s one in three.”
While California’s population declined early in the pandemic, it grew by over 230,000 people between July 2023 and July 2024—a trend driven primarily by more than 360,000 international immigrants, reflecting the state’s dependence on migration for economic recovery.
U.S. Census Bureau data from 2022 showed that one-third of restaurant and warehouse workers, 40% of care workers, half of truck and hospitality employees, and 60% of landscaping and cleaning service workers are foreign-born.
The construction sector is expected to feel the impact first. Dean Baker, senior economist at the Center for Economic and Policy Research, warned, “If raids continue, day laborers will disappear from job sites, and small construction firms will struggle to hire, forcing them to delay or cancel projects.”
The garment industry may also suffer. In the LA Fashion District, where the June 6 raid took place at Ambiance, a Korean American-owned clothing distributor, roughly 15,000 workers were employed as of 2023. Industry sources noted that many sewing factories rely on immigrant labor, including undocumented workers. “If the crackdown continues, businesses could collapse one after another,” one insider said.
Experts added that the issue is worsened by an aging domestic workforce and growing aversion to manual labor among U.S.-born workers.
Tourism may also be affected. International and domestic travelers could avoid visiting cities seen as hostile to immigrants. Moreover, LA’s global appeal—rooted in its diversity of cultures, cuisines, and communities—could be undermined, damaging its reputation and tourism revenue.
A study by Boston University economist Tarek Hassan found that mass deportation policies could also lead to lower wages. His recent paper projected that if all undocumented immigrants were removed, California’s average annual wage could drop by $970 over five years.
“An economy grows when it has more productive people,” said Hassan. “Immigration is a driver of growth. The idea that immigrants steal jobs from Americans is simply incorrect.”
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
