‘Essential isn’t a strong enough word’: Loss of foreign workers begins to bite US economy

President Donald Trump’s crackdown on immigration is starting to ripple across the U.S. economy. From small farms in California, to meat packing facilities in Nebraska to corporate giants like Disney, businesses are scrambling to replace workers after recent administration actions have taken immigrants, both legal and illegal, out of the labor force, including several hundred thousand people who had been given temporary work permits under President Joe Biden. 00:03 02:00 Read More That’s because foreign-born workers, or their relatives, have become critical in some labor sectors. “Essential isn’t a strong enough word,” said Matt Teagarden, head of the Kansas Livestock Association. “It is some version of an immigrant, maybe not first generation, but second or third generation, that are just critical to that work.” The emerging reports are the first signs of what economists and labor market experts had warned would result from Trump’s signature campaign issue, which has so far included revoking temporary legal status for several hundred thousand people who have been allowed to live and work in the U.S. in recent years without gaining citizenship. Daily operations have been thrown into question for the cattle ranchers in Teagarden’s organization because employers have become reliant on workers who, even if not directly threatened by the administration’s actions, may be related to people who are. “Am I going to have enough crew around tomorrow to get the cows milked and cows fed and everything done?” he said. “What’s my contingency plan to do the essentials, if not?” Trump has said he was working on addressing labor shortages in agriculture, telling supporters at a rally in Iowa on Thursday he wants to “work with the farmers” even if he ends up alienating “serious, radical-right people” who want to curb immigration. Agriculture Secretary Brooke Rollins on Tuesday suggested Medicaid participants who don’t yet meet the work requirements passed in Republicans’ megabill could supplement labor shortages in the agriculture industry. And the administration has taken some incremental actions intended to address concerns over the shortage of foreign-born workers, including creating an Office of Immigration Policy within the Department of Labor. The White House has touted the success of its immigration policies, arguing they have led to historically low border crossings and the prioritization of U.S.-citizen workers. The Department of Homeland Security said it arrested a little over 6,000 people crossing the U.S.-Mexico border illegally in June, among the lowest monthly border crossing figures in decades. “President Trump is a tireless advocate for American farmers — they keep our families fed and our country prosperous. He trusts farmers and is committed to ensuring they have the workforce needed to remain successful,” White House spokesperson Abigail Jackson said in a statement. “But there will be no safe harbor for the countless, unvetted, criminal illegal aliens that Joe Biden let waltz into the country.” The administration exacerbated the situation Monday, revoking legal status for approximately 76,000 people from Honduras and Nicaragua — and eliminating their work authorizations. It had previously done so for Haitians, Afghans, Venezuelans and Cameroonians. Some large corporations that rely on foreign-born workers, including those with protected status people admitted under other programs, have already felt the impacts. In May, Disney reportedly began cutting workers with temporary legal status, and Walmart took a similar step last month. Foreign-born workers at Amazon have reported receiving similar notices. Walmart and Amazon declined to comment. Disney did not respond to requests for comment. Mass arrests of people without legal status have sent a chill through several industries as Immigration and Customs Enforcement conducts raids around the country. Agriculture businesses have expressed concern about the knock-on effects of ICE raids — that they deter even legal workers from showing up to work, worsening existing labor shortages and jeopardizing crops. Trump’s immigration actions are squeezing the labor market even as some broader economic trends remain positive. Federal Reserve Chair Jerome Powell has repeatedly indicated as much, including at a congressional hearing in June, where he said economic growth is “slowing” due to a shrinking labor force. Tightening the labor market through strict immigration enforcement could permanently increase inflation, an Oxford Economics study from June finds, pointing to subsequent increases in production costs and lower output due to limited workers. Uncertainty in the labor market could contribute to an “economic malaise,” said Stuart Anderson, executive director at the nonpartisan think tank National Foundation for American Policy. “If you want to have a growing economy, you need to have a growing labor force,” Anderson said. “The idea that you are just going to create more opportunity by having fewer workers available just doesn’t work in practice, because that’s not the way business runs.” Watch: The Conversation Marco Rubio on his many roles, plus a chat with Trump’s ‘chief Twitter troll’ | The Conversation Play Video Marco Rubio on his many roles, plus a chat with Trump’s ‘chief Twitter troll’ | The Conversation Trump has signaled some willingness to ease access to foreign-born labor specifically for farmers and hospitality workers – industries he has long prioritized as a key political constituency. Agriculture lobbyists have pushed the administration for an expansion of the seasonal visa program to apply to year-round workers and an easing of wage requirements. Neither the administration nor Congress have yet to announce concrete steps on a solution for those groups despite Trump’s rhetoric, and any moves would need to be extensive to offset the exodus of workers. “American produce growers are facing a severe labor shortage that’s driving up food prices and threatening domestic production,” Sarah Gonzalez, spokesperson for the International Fresh Produce Association, said. “We appreciate President Trump’s recognition of this crisis and any efforts to stabilize the agricultural workforce. But lasting solutions require bipartisan legislation that ensures U.S. farmers have access to a legal, reliable workforce.” For more information, visit us at https://www.beverlyhillsimmigrationlaw.com/.