Report: Mass Deportations Will Hit California Economy Hard  

      A new economic report warns that federal immigration enforcement crackdowns could deal a major blow to California’s economy by targeting undocumented immigrants who make up a critical part of the workforce.

      The study found that of California’s 10.6 million immigrants, about 2.28 million are undocumented. They make up nearly 8% of all workers in the state. These workers help generate nearly 5% of the state’s gross domestic product (GDP) through direct wages. When indirect economic effects are included, that number rises to almost 9%. Undocumented workers also contribute more than $23 billion annually in local, state, and federal taxes.

“Undocumented immigrants are deeply woven into the fabric of California’s economy,” stated the report. “Mass deportation policies would cause wide-scale disruptions in key industries and harm communities across the state.”

      The report highlights the potential losses in sectors like agriculture and construction. Undocumented workers make up more than a quarter of California’s farm labor force. Without them, the state’s agricultural GDP could fall by 14%. In construction, 26% of the workforce is undocumented. Removing them could shrink the sector’s GDP by nearly 16%, worsening an already severe labor shortage.

      The report also includes interviews with business and community leaders who say increased immigration enforcement is already causing worker shortages and hurting local economies. Many expressed support for federal legalization measures to protect undocumented workers and reduce uncertainty in the labor market.

      With nearly one-third of California’s population born outside the U.S., the state’s economy is especially vulnerable to abrupt changes in immigration policy. Researchers say that disruptions in California would ripple through the national economy.

      A group of California legislators, including Sen. Lola Smallwood-Cuevas (D-Los Angeles) and Assemblymember Mia Bonta (D-Alameda) – both members of the California Legislative Black Caucus (CLBC) – also signed a letter last week addressed to members of California’s delegation in Congress, warning them that the ramped-up immigration crackdown will harm the state’s economy. 

      “According to the conservative-leaning American Enterprise Institute, California’s economy, along with much of the nation, is largely dependent on foreign-born labor,” the legislators wrote. 

      “Nationwide, about 1 in 5 jobs are filled by people born abroad, and in California, it’s about 1 in 3. Immigration has long been key to the growth of California’s economy, particularly in industries such as homebuilding, construction, tech, leisure and hospitality, health care and agriculture.”