ICE Raids: Worker Shortages & Business Impact
ICE raids are causing widespread fear and labor shortages, according too recent reports. The renewed focus on immigration enforcement is disrupting businesses-especially in agriculture and hospitality-creating a climate of anxiety among workers and leading to critical staffing gaps. These repercussions of stricter policies are substantially impacting key industries, with businesses facing increased costs and operational challenges. Explore the critical impact on American businesses. News Directory 3 provides an in-depth analysis of the economic consequences and the ongoing debates surrounding immigration and labor. Discover what’s next for businesses navigating these uncertain times.
immigration Raids Cause Fear and Labor Shortages
Updated June 19, 2025
WASHINGTON — A temporary reprieve from immigration raids offered by President Donald Trump last week proved short-lived, leaving farmers, ranchers, and hospitality businesses once again grappling with worker shortages and widespread anxiety.
Rebecca Shi,CEO of the American Business Immigration Coalition,noted a brief “sense of calm” that quickly dissipated. Tricia McLaughlin, assistant secretary of the Department of Homeland Security, soon after declared that industries harboring “violent criminals” would face consequences, reaffirming the importance of worksite enforcement. This policy reversal has baffled employers and reignited fears, according to Shi.
The renewed crackdown follows trump’s campaign promise to deport millions of immigrants working in the U.S. illegally.Stephen Miller, White House deputy chief of staff, recently increased ICE’s daily arrest quota, intensifying enforcement efforts.Shi said ICE agents have been seen on farms, disrupting operations and removing meaningful portions of the workforce. One New Mexico dairy farm saw its workforce plummet from 55 to 20, according to Beverly Idsinga, executive director of the Dairy Producers of New Mexico. She emphasized the continuous needs of dairy operations.
In Los Angeles, chef Claudio Gonzalez at Izakaya Gazen reported that Hispanic workers, irrespective of their legal status, are increasingly calling out of work due to fear of ICE. Gonzalez said the workers feel targeted based on their skin color.
Even rumors of raids are impacting labor.In Washington state, cherry harvests are suffering as foreign-born workers stay away from orchards, despite a lack of confirmed ICE activity. Jon Folden, orchard manager for Blue Bird, said one operation is down to 20 pickers from a usual 150.
Jennie Murray, CEO of the National Immigration Forum, said immigrant parents fear potential workplace raids, worrying about the well-being of their children if they are detained.She said they are asking themselves if they should risk going to work.
Trump acknowledged the issue on his Truth Social platform, noting that “very aggressive policy on immigration is taking very good, long time workers away from them, with those jobs being almost impossible to replace.”
With U.S. unemployment at 4.2%, businesses rely on immigrant labor to fill critical roles. Census Bureau data from 2023 shows foreign-born workers comprising nearly 24% of food preparation and service jobs and 38% of farming, fishing, and forestry positions.
Matt Teagarden, CEO of the Kansas Livestock Association, said those pushing for raids targeting farms seem to lack understanding of farm operations.
Torsten Slok, chief economist at Apollo Global Management, estimated in January that undocumented workers account for 13% of U.S. farm jobs and 7% of hospitality jobs.
A Pew Research Center study last year revealed that 75% of U.S. registered voters, including 59% of Trump supporters, believe undocumented immigrants primarily fill jobs that American citizens do not want. Moreover, immigrant influxes in 2022 and 2023 helped the U.S. manage inflation without triggering a recession.
Patrick Murphy, chief investment officer at Coastal Construction, said sudden crackdowns slow timelines, increase costs, and hinder planning. He added that the uncertainty surrounding enforcement makes it challenging to operate a forward-looking business.
Douglas Holtz Eakin, president of the American Action Forum, said ICE has detained legal immigrants, creating fear and disrupting the workforce. He said the immigration policy and the economic policy are not lining up at all.
What’s next
The long-term economic consequences of the administration’s immigration policies remain uncertain, but businesses are bracing for continued labor challenges and increased operational costs as the debate over immigration enforcement continues.