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Decline of Immigrants in U.S. Labor Force Raises Concerns

Diverse laborers in agriculture and construction representing immigrant workforce

California, September 1, 2025

News Summary

A recent analysis from the Census Bureau indicates over 1.2 million immigrants have left the U.S. labor force between January and July this year, signaling a worrying trend for sectors reliant on immigrant workers. Immigrants represent nearly 20% of the U.S. workforce, with significant contributions in agriculture, construction, and services. As enforcement policies tighten, labor shortages are surfacing, particularly in California, affecting both the economy and essential service sectors like healthcare.

California – Recent analysis from the Census Bureau, evaluated by the Pew Research Center, reveals that over 1.2 million immigrants have exited the U.S. labor force between January and July this year. This trend marks a significant decline among both undocumented immigrants and legal residents, raising concerns about labor shortages across various sectors that heavily depend on immigrant workers.

As immigrants make up nearly 20% of the U.S. workforce, their departure is expected to create devastating effects. According to preliminary estimates, immigrants represent 45% of the workforce in farming, fishing, and forestry, while making up 30% of the construction workforce and 24% of service workers. The current immigrant population has hit a historic low, following an all-time high of 14 million undocumented individuals in 2023. Various factors may be contributing to this decline, including voluntary exits, anxiety over deportation, or complications in reporting methods.

The Trump administration’s commitment to enforce strong immigration policies is apparent, with promises to deport millions of undocumented people, primarily focusing on “dangerous criminals.” Despite these assurances, recent reports indicate that a significant number of those detained by Immigration and Customs Enforcement (ICE) lack criminal convictions. This comes at a time when illegal border crossings have sharply decreased.

Labor economist assessments suggest that immigrant labor has typically accounted for about 50% of job growth within the U.S. economy. The effects of labor shortages caused by the declining immigrant workforce are already palpable. In Texas, incidents of spoiled crops due to labor shortages during peak harvesting seasons have been reported. Furthermore, immigration enforcement measures at service-oriented businesses have hindered operations, leading to fewer available jobs and diminishing the economic vitality of affected industries.

Specific areas, such as Riverside-San Bernardino-Ontario in California, have experienced devastating job losses, with approximately 7,200 positions gone, alongside a decrease of 6,200 jobs in the Los Angeles area. The construction industry also faces significant declines in employment numbers. In addition, reports indicate that nearly half of long-term caregivers in California hospitals and nursing homes are immigrants, which raises concerns over potential labor shortages in the healthcare sector—especially among home health aides.

The ripple effects of these immigration policies extend to the California economy as well. Businesses report decreased customer traffic, making efforts to stay afloat increasingly challenging. Studies have already unveiled a 3.1% decline in private-sector workers in California following the introduction of immigration raids, predominantly affecting noncitizen women. Furthermore, undocumented workers are estimated to contribute approximately 5% to California’s GDP, with this figure escalating to 9% when accounting for the economic multiplier effect. If undocumented workers are systematically removed from the economy, substantial contractions in the agricultural and construction sectors could ensue.

Experts warn that persistent immigration enforcement is likely to yield long-term economic repercussions across various industries that rely heavily on immigrant labor. The critical intersection between labor availability and immigrant residency cannot be overstated, as the economic landscape evolves swiftly amidst changing immigration policies.

FAQs

What has caused the recent decline in immigrant workers in the U.S.?

The decline is attributed to several factors, including voluntary departures, fears of deportation, or potential issues with technical reporting.

How significant is the immigrant population in the U.S. workforce?

Immigrants constitute nearly 20% of the U.S. labor force, heavily influencing sectors like agriculture, construction, and services.

What sectors are most affected by the decrease in immigrant workers?

Sectors most affected include agriculture, construction, and healthcare, where labor shortages from declining immigrant numbers are becoming increasingly apparent.

What economic impact does removing immigrant workers have?

The removal of undocumented workers could lead to significant contractions in industries such as agriculture and construction, with potential long-term repercussions for economic growth.

Key Features of Immigrant Labor Impact on U.S. Economy

Feature Data
Immigrant Workforce Percentage 20%
Percentage of Immigrants in Farming 45%
Percentage of Immigrants in Construction 30%
Percentage of Immigrants in Services 24%
Job Loss in Riverside-San Bernardino-Ontario 7,200
Job Loss in Los Angeles Area 6,200
GDP Contribution by Undocumented Workers in California 5% (9% with multiplier)

Deeper Dive: News & Info About This Topic

STAFF HERE HUNTINGTON BEACH
Author: STAFF HERE HUNTINGTON BEACH

The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange 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 Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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