Report: U.S. Economy Has Lost as Many as 1.2 Million Foreign-Born Workers Since January

Since President Donald Trump's return to the White House in January, several key sectors of the U.S. economy — including agriculture, construction and hospitality — have experienced growing strain under his administration's aggressive immigration enforcement. Mass deportations and a sharp drop in immigrant labor have led to worker shortages and business disruptions in industries that rely heavily on undocumented and foreign-born workers.

These trends are detailed in a new report, Warning Signs of the Economic Harms from Deportations, published by Economic Insights and Research Consulting. The analysis estimates that the U.S. workforce has shrunk by as many as 1.2 million foreign-born workers since January 2025. According to the report, this labor loss has contributed to higher prices for goods and services and widespread staffing shortages in multiple sectors.

Among the hardest-hit industries is agriculture. The report finds that between March and July, agricultural employment fell by 6.5 percent — a sharp decline after two years of growth. That drop in labor has coincided with notable price increases, including an annualized 8 percent rise in the cost of fresh vegetables and more than a 7 percent jump in meat prices.

In recent months, federal immigration agents have focused heavily on agricultural hubs in California, where a large share of the workforce is undocumented. As of 2022, more than 40 percent of crop workers nationwide lacked legal work authorization, with California especially reliant on immigrant labor. These enforcement actions have made existing shortages worse.

A Reuters report from late June noted that up to 70 percent of farmworkers in Ventura County stopped showing up for work due to increased ICE activity. "If 70 percent of your workforce doesn't show up, 70 percent of your crop doesn't get picked," local grower Lisa Tate told the outlet.

"Trump's mass deportation assault disrupts our economy and drives up prices on groceries and housing for all Americans — the inevitable result economists have long predicted," said Vanessa Cárdenas, executive director of America's Voice, in a statement.

The construction sector has also seen major effects. The report notes that between June 2024 and June 2025, employment declined in the 10 states with the highest immigrant populations. In contrast, construction employment in the rest of the country rose by 1.9 percent during the same period. Even those other 40 states, many of which also rely on undocumented construction workers, saw slower growth compared to the 2.3 percent increase the previous year. The report also found that building permits dropped by 17 percent in the Northeast.

In the leisure and hospitality industry, similar patterns have emerged. Food service employment rose by just 0.2 percent in states with high immigrant populations, compared to 1.5 percent elsewhere. The report notes that many neighborhood restaurants and small businesses have been forced to cut hours or shut down entirely due to staffing shortages. Restaurant prices have also climbed, rising at an annual rate of 5.3 percent.

"From farm fields in California to construction sites in the Northeast, we're witnessing the real-world consequences of targeting the people who power our economy," Cárdenas added. "This isn't just bad immigration policy — it's economic sabotage that hurts working families and damages entire communities."

With deportations rising and labor shortages mounting, the report warns that these disruptions may continue to ripple across the economy in the months ahead.