California faces growing economic fallout from wave of mass deportation

(MENAFN) California is grappling with the growing economic fallout from a wave of federal immigration enforcement actions that began in early June. Business owners, union representatives, and human rights advocates are raising concerns about the escalating impact, warning that the pace of disruption has intensified in recent weeks.

According to an analysis published in June by the Bay Area Council Economic Institute, an estimated 2.3 million undocumented individuals — around 8% of the state’s total workforce — contribute approximately $278 billion to California’s annual GDP. The report projected that mass removals of these workers could wipe out nearly 9% of the state's economic output and cause a parallel drop in consumer spending.

But current indicators suggest the damage could exceed those earlier estimates. During a recent online seminar titled “The Economic Impact of Mass Deportation in California,” George Carrillo, head of the Hispanic Construction Council, said jobsite raids have already caused significant delays in projects across the state. Since January, overall construction completions have reportedly fallen by 22%.

“If you hobble construction, you hobble every sector that depends on new homes, hospitals and roads,” Carrillo stated. His organization estimates that about 26% of construction workers in California are undocumented.

The agricultural sector is also feeling the strain. With harvest season approaching, the industry — which typically employs over 480,000 field laborers at peak — is struggling to maintain workforce numbers. Bryan Little, a senior official at the California Farm Bureau, noted that farmers are “scrambling to fill crews” and that many crops are being left unharvested. He warned that the labor shortage could soon impact food prices across the country.

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