The Cuban-American congresswoman, María Elvira Salazar, brought to light on Tuesday the economic repercussions of recent immigration raids, questioning Federal Reserve Chairman Jerome Powell on the impact of losing thousands of workers. "We're seeing a significant loss of workers in industries like construction, hospitality, and agriculture due to recent immigration measures. This exodus is already taking a toll on our economy, and these sectors can't operate without these workers," she stated on X, alongside a video of her remarks.
During a Financial Services Committee hearing, Salazar voiced her concerns directly to Powell, who concurred that economic growth is slowing, with this being a contributing factor. In her brief video, Salazar expressed support for the deportation of illegal immigrants with criminal backgrounds but questioned the broader economic implications of losing such a large workforce.
"We're in agreement with President Trump's policies. The Administration is right to deport illegal criminals. We do not want individuals who have committed crimes, especially if they are here illegally," Salazar emphasized. "However, we are losing thousands of workers, described by ICE leadership as 'collateral damage', and most of these workers are in key sectors: construction, hospitality, and agriculture," she added.
The congresswoman further highlighted that even the president has acknowledged the necessity of these workers. When asked about the effects of these "removals," Powell stated that immigration is not within his purview, but acknowledged that current immigration policies have indeed reduced labor force growth in the United States. "It's not our role to have an opinion on immigration policy," he reiterated, while noting that "economic growth will slow, and it is already happening this year."
South Florida's Economic Struggles Amidst Immigration Crackdowns
In South Florida, where the Hispanic community is a driving force behind various economic sectors, the tangible consequences of stricter immigration enforcement are becoming evident. Areas like Homestead, a major agricultural hub in Miami-Dade County, are experiencing a sharp decline in commercial activity.
The aggressive ICE raids and the official narrative criminalizing immigrants indiscriminately are eroding the very foundation of the local economy. This policy not only affects undocumented individuals but also the businesses and entire communities that rely on them. Many immigrants are choosing to stay home, and numerous businesses are reporting operational losses.
The repercussions extend beyond commerce. Immigrants make up as much as 50% of the workforce in vital sectors such as agriculture, construction, healthcare, and manufacturing, contributing over $80 billion in annual taxes. Their absence could lead to a 4.2% drop in GDP, according to business coalition estimates, starkly contradicting any claims of economic strengthening under Trump’s immigration policies.
The strategy of mass deportations is creating a harmful cycle: workers vanish, businesses close or scale back, demand shrinks, and investments stall. Meanwhile, the White House maintains a hardline stance: any undocumented immigrant, regardless of their background, is deemed "a criminal."
Impact of Immigration Policies on U.S. Economy
How do immigration policies affect the U.S. economy?
Immigration policies, particularly those leading to mass deportations, can significantly impact the U.S. economy by removing large numbers of workers from critical industries such as agriculture, construction, and hospitality. This loss can lead to decreased productivity, operational challenges for businesses, and a potential decline in GDP.
What sectors are most affected by the loss of immigrant workers?
The sectors most impacted by the loss of immigrant workers include agriculture, construction, hospitality, healthcare, and manufacturing. These industries heavily rely on immigrant labor to maintain operations and meet demand.
What are the long-term effects of strict immigration enforcement on local economies?
In the long term, strict immigration enforcement can lead to labor shortages, reduced business activities, and economic contraction in local economies. These effects can result in lower tax revenues, decreased consumer spending, and hindered investment growth.