From citrus farms in the Central Valley to construction sites in Pacific Palisades, California relies heavily on immigrant labor. Research indicates that agriculture, construction, and hospitality could be among the sectors most affected by shifts in U.S. immigration enforcement.
California's economy is valued at US$4 trillion, making it the fourth largest in the world. About one-fifth of the state's 10.6 million immigrants are undocumented, according to a June study by the Bay Area Economic Institute and the University of California, Merced. The study estimated that mass deportations combined with stricter border measures and the end of temporary protected status could reduce California's gross domestic product by as much as US$278 billion.
Agriculture, valued at US$49 billion annually, has the highest concentration of immigrant workers. The Bay Area Council reported that 63% of farm workers are immigrants and 24% are undocumented. Joe Garcia, president of the California Farmworker Association, said: "The lettuce, the strawberries, all the wine we drink on a daily basis, fruit juices– everything that a farmworker picks, packs, pre-harvest– they do the jobs all year round that put food on your table." He added that automation is not an option for many positions, and domestic workers show little interest in such jobs.
The Trump administration has argued that the U.S. labor market can adjust. White House spokeswoman Abigail Jackson said: "There is no shortage of American minds and hands to grow our labor force, and President Trump's agenda to create jobs for American workers represents this Administration's commitment to capitalizing on that untapped potential while delivering on our mandate to enforce our immigration laws."
Los Angeles businesses have also been impacted by immigration enforcement. The Independent Hospitality Coalition, which represents about 900 local businesses, said raids and National Guard deployment created a challenging atmosphere. Courtney Kaplan, who owns three restaurants in Los Angeles, reported a 70% drop in sales in June. Data from OpenTable showed dining reservations in Los Angeles fell 3% year-on-year between June 7 and 21.
Source: CNBC
