In brief
As President Trump's administration ramps up its crackdown on undocumented immigrants, businesses in the U.S. are feeling the impact. Companies like Total Quality, a Maryland cleaning service, report losing staff due to the stripping of temporary protections for immigrants from countries such as Venezuela and Nicaragua. Victor Moran, the CEO, fears the expulsions will cost him hundreds of employees who help fill important roles in the workforce.
Over 19% of the U.S. workforce were immigrants last year, a sharp increase from 10% in 1994. Trump's focus has been primarily on undocumented workers, estimated to represent 4% of the total workforce. However, his broader immigration policies, which include reigniting workplace raids and rescinding existing protections for immigrant workers, have raised concerns amongst businesses that depend on immigrant labor. Analysts warn that Trump's aggressive immigration stance may result in significant economic consequences, including worker shortages that could hinder growth and inflate wages across various sectors.For those like Justino Gomez, a 73-year-old immigrant who fears deportation to El Salvador, these policies bring anxiety as their livelihoods are threatened. Gomez's fear is compounded by the actions taken against those on temporary work permits, which could reinvent America from an immigrant-friendly country to a more isolated economy.In sectors like caregiving and agriculture, firms are already struggling to find and retain qualified workers. Executives cite that many of their foreign-born employees are crucial for operations, indicating potential rises in service costs as demand outstrips availability. As the labor shortage impacts critical service industries, including healthcare and construction, the call for reforms to immigration law is growing louder, but immediate policy changes appear unlikely amidst the current enforcement-focused approach.As the Trump administration acknowledges disruptions in key industries, experts like Giovanni Peri from UC Davis warn that sustained immigration restrictions could lead the U.S. economy towards stagnation, further impacting growth rates and inflation.
