President Donald Trump's hardline clampdown on immigration has exacerbated fears over a labor shortage, according to a new poll.
Why It Matters
Trump has vowed to carry out the largest mass deportation operation in United States history. However, the policy has sparked concerns about its potential ripple effects on the U.S. economy.
What To Know
Polling by employment law firm Littler found that a majority of U.S. business executives view immigration policy as a key area of concern. Seventy-five percent of respondents identified the current administration's immigration policies as one of their top concerns, second only to diversity, equity, and inclusion.
"Immigration and DEI policies aren't my top concern," said Craig Rupp, founder and CEO of Sabanto, a farming technology company. He added that he was far more concerned about the president's on-again, off-again relationship with slapping tariffs on countries.
Additionally, 70 percent of executives said they expect enforcement actions by U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS) to have a moderate or significant impact on their workplaces over the next year. More than half—58 percent—expressed concern that these policies could lead to staffing difficulties, with executives in the manufacturing and hospitality sectors expressing heightened anxiety.
The survey, conducted between late February and mid-March, included responses from 349 executives at U.S. companies. Sixty percent were in-house legal professionals, while the remainder included human resources leaders and other C-suite executives. Nearly three-quarters of those surveyed worked at firms with more than 1,000 employees.
The removal of thousands of undocumented workers could disrupt supply chains, exacerbate labor shortages, and result in higher prices for consumers.
Agricultural production could fall by $30 billion to $60 billion if Trump's deportation policy is implemented, according to the American Business Immigration Coalition (ABIC).
ABIC CEO Rebecca Shi told Newsweek that the U.S. economy "runs on immigrant talent."
The American Immigration Council estimates that implementing a large-scale removal policy could result in a one-time cost of approximately $315 billion. In addition, deporting one million individuals annually could generate ongoing expenses of up to $88 billion per year.
"Removing undocumented immigrants from the labor market does not mean that the jobs they would have taken will then be filled by U.S.-born workers," immigration attorney Hector Quiroga told Newsweek.
What People Are Saying
ABIC CEO Rebecca Shi said in a statement to Newsweek: "America's economy runs on immigrant talent—31% of eldercare workers and over half of the farm workers. We need smart immigration policies to keep businesses strong and prices low. President Trump's recent call for legal pathways for farm workers and hotel workers is a critical step forward. Businesses across the nation are eager to work with Congress and the President to secure the workforce that powers our future."
Craig Rupp, founder and CEO of Sabanto, told Newsweek: "We comply with federal requirements like the I-9 system to verify employment eligibility, and that's straightforward. My top concern are tariffs. It's not necessarily the tariffs themselves but the resultant uncertainty they inject in the markets and investor behavior. That volatility has a far greater impact on how we plan and grow our business."
Immigration attorney Hector Quiroga told Newsweek: "Immigrant workers are willing to take on jobs that are physically demanding and require skills in jobs that most Americans are not willing to take on."
White House spokesman Kush Desai told Axios: "Over one in ten young adults in America are neither employed, in higher education, nor pursuing some sort of vocational training. There is no shortage of American minds and hands to grow our labor force, and President Trump's executive order to modernize workforce training programs represents this Administration's commitment to capitalizing on that untapped potential."
What Happens Next
While certain industries and companies are likely to feel the effects of stricter immigration enforcement, its broader impact on employment growth remains uncertain and may depend largely on the overall health of the economy. If the U.S. enters a recession later this year—as some economists anticipate—the pressure from a reduced labor force could be lessened, as fewer job openings would need to be filled.
Newsweek