California Faces Labor Shortages Amid Immigration Policy Changes

California, September 1, 2025

News Summary

California is grappling with significant labor shortages due to recent immigration policies, leading to a loss of over 1.2 million immigrants from the U.S. labor force. Immigrants comprise nearly 20% of the workforce, playing vital roles in agriculture, construction, and healthcare sectors. The fear of deportation and increasing immigration enforcement is driving many workers away, resulting in job losses and economic disruptions, particularly in industries that rely heavily on immigrant labor. Without these workers, California’s economy may face severe long-term impacts.

California is facing significant labor shortages due to the recent immigration policies enacted during President Trump’s administration, with preliminary data from the Census Bureau analyzed by the Pew Research Center indicating that over 1.2 million immigrants have left the U.S. labor force from January to July. This decline affects both undocumented immigrants and legal residents and signifies a troubling trend for many industries heavily reliant on immigrant labor.

Immigrants make up nearly 20% of the U.S. workforce, playing a critical role in various sectors. In particular, they account for 45% of workers in farming, fishing, and forestry; 30% of all construction workers; and 24% of service workers. The number of immigrants in the U.S. labor force is experiencing a notable decline for the first time after reaching an all-time high of 14 million undocumented individuals in 2023.

The reasons for this decline are still unclear, with potential factors including voluntary departures or increased fears of deportation, paired with possible technical reporting issues. Under Trump’s administration, the commitment to deport millions of undocumented immigrants and to prioritize the removal of individuals identified as “dangerous criminals” has created a climate of fear that may be contributing to this exodus.

Data from the U.S. Immigration and Customs Enforcement (ICE) reveals that most detainees are without criminal convictions, even as reports indicate that illegal border crossings have significantly decreased. Labor economists point out that immigrant workers contribute to approximately 50% of job growth in the United States. In states like Texas, reports indicate that labor shortages have led to issues such as spoiled crops during peak harvesting seasons. Business operations are further paralyzed by increased immigration enforcement.

In California, a farm business manager reported smaller work crews due to laborers’ fears of potential ICE raids, which have resulted in numerous arrests during routine activities. The construction industry is likewise facing declines, particularly in metropolitan areas where the loss of immigrant labor has resulted in a decrease in overall employment. The Riverside-San Bernardino-Ontario area reported a job loss of 7,200 jobs, followed closely by 6,200 in the Los Angeles area.

Immigrants are also crucial in the health care sector, especially among long-term caregivers, with nearly 50% of such workers in California identified as immigrants. A predicted labor shortage could lead to adverse effects in home health care services as immigration enforcement continues to tighten. Additionally, the immigration crackdown in California has already sparked economic disruptions, with businesses noting reduced customer traffic stemming from the fear of immigration raids.

A study indicated a 3.1% decline in private-sector workers in California in the wake of intensified immigration enforcement, with the most significant decrease seen among noncitizen women. Undocumented workers contribute approximately 5% of California’s GDP, increasing to 9% with the multiplier effect on the economy. Without these workers, economists warn that major industries, particularly agriculture and construction, could see considerable contractions, leading to profound long-term economic impacts if current immigration enforcement levels remain unchanged.

Key Statistics

• 1.2 million immigrants lost from the U.S. labor force (January to July)
• 20% of the U.S. workforce are immigrants
• 45% of agricultural workers are immigrants
• 30% of construction workers are immigrants
• 7,200 jobs lost in Riverside-San Bernardino-Ontario
• 3.1% decline in private-sector workers in California
• 5% of California’s GDP generated by undocumented workers

FAQs

Deeper Dive: News & Info About This Topic

• ABC News: 1.2M Immigrants Leave U.S. Labor Force
• Google Search: California Labor Force Immigration
• Reuters: Immigration Raids Leave Crops Unharvested
• Wikipedia: Immigration to the United States
• CBS News: Immigration Crackdown Labor Shortages in California
• Encyclopedia Britannica: Immigration

Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.