Mass deportations promised by President-elect Donald Trump could have a seismic economic effect in California — potentially inflicting billions of dollars in direct damages to a wide range of industries, including small business, agriculture, construction and child care, advocates and academics said.
The impact could also spread outward to other sectors, including growth drivers like tech.
The Golden State relies heavily on the labor of immigrants, whether they’re naturalized U.S. citizens, have temporary visas or are undocumented. More than 10 million, or 27%, of California’s population is foreign-born, according to the most recent U.S. Census data. Roughly a fifth of those are thought to be undocumented; as of 2022, estimates ranged from 1.8 million undocumented immigrants, according to the Pew Research Center, to 2.4 million, according to the left-leaning Institute on Taxation and Economic Policy.
If undocumented immigrants “magically disappear, you’re going to erase 10% of California production,” said Giovanni Peri, professor of international economics at UC Davis. “We’re talking about hundreds of billions of dollars.”
The loss of workers only speaks to part of the financial impact of deportations. Undocumented immigrants also power the state’s economy as consumers and taxpayers.
There may also be indirect impacts from the deportations. The loss of workers in construction, agriculture (including the state’s world-famous wine industry), hospitality and the care economy would have ripple effects on the rest of the state, according to Manuel Pastor, professor of sociology and American studies and ethnicity at the University of Southern California.
“Behind every software engineer is an army of nannies, food-service workers and gardeners,” Pastor said.
Pastor thinks businesses are likely to protest significant cuts to their workforces given how tight the labor market is. “They’ve come for the tax cut, they didn’t stay for stripping away…
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