Federal immigration enforcement actions are rattling California’s economy. Foreign-born workers hold one-third of all jobs, and their absence is causing labor shortages and economic disruptions across multiple industries, according to the Los Angeles Times.

Immigration and Customs Enforcement agents have targeted Los Angeles-area Home Depot locations where day laborers gather, sending shockwaves through sectors dependent on immigrant labor. “The reality is that the U.S. economy is largely today dependent upon foreign born labor — and in California more so,” said Nicholas Eberstadt of the American Enterprise Institute.

The construction industry faces immediate impacts as workers avoid public gathering spots. “If you need workers and they aren’t there, that really holds up your site,” said Dean Baker, senior economist at the Center for Economic and Policy Research. “It’s going to raise costs. In some cases, projects won’t be undertaken.”

Economic Ripple Effects Spread Across Sectors

Meanwhile, restaurants, warehouses, healthcare facilities and agricultural operations rely heavily on the foreign-born workers who comprise 40% to 60% of their workforce.

Tourism faces additional pressure as National Guard deployment triggers hotel cancellations. “People are nervous to come to Los Angeles,” said Jackie Filla of the Hotel Association of Los Angeles.

Read more at Los Angeles Times