President Trump’s stepped-up deportation raids in California, targeting workplaces and routine check-ins, have sparked protests and raised alarms among economists who warn of long-term economic fallout.
Immigrants, who make up one-third of California’s workforce and dominate industries like construction, agriculture, and care work, are essential to the state’s labor market. Removing them, experts say, could worsen labor shortages, limit business growth, and reduce job creation.
While critics argue immigrants suppress wages, studies show they generally boost wages or have neutral effects. Undocumented workers — about 17% of California’s immigrant population — also contribute billions in taxes despite lacking access to most federal benefits.
Though Trump has signaled some deportation relief for industries like farming and hospitality, economists caution that ongoing crackdowns could discourage future immigration, tightening the labor market and slowing economic growth.