Employers worry over immigration crackdown as labor shortage fears loom
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The Trump administration's immigration crackdown is sparking employer worries over workplace raids and staffing challenges, a new survey of executives out Wednesday finds.
Why it matters: A drastic reduction in immigration could lead to labor shortages, especially in some critical roles — building houses, taking care of the growing elderly population, or staffing farms and meatpacking plants.
- There's the potential for a longer-term slowdown in economic growth, as well.
By the numbers: 75% of executives surveyed by the employment law firm Littler said the administration's immigration policies were among their top concerns — the only other topic that drew more worry was diversity, equity and inclusion policy.
- 70% of executives said they expect immigration enforcement actions from ICE and DHS will have a significant or moderate impact on their workplaces over the next 12 months.
- 58% expressed concern that Trump's immigration policies will create staffing challenges. Companies in manufacturing and hospitality expressed even more worries.
- Littler surveyed 349 executives at U.S. firms from late February to mid-March — 60% in-house lawyers, and the rest HR or others in the C-suite. Nearly three-quarters of the execs surveyed are at companies with more than 1,001 workers.
"I was just flabbergasted by how high the concern was among our clients," said Jorge Lopez, a shareholder at the firm who chairs its immigration and global mobility practice group.
- The results show you where the mindset is for American companies, he says.
- Businesses aren't simply worried about their own employees, but also ripple effects (like citizen workers who have family members deported).
The other side: "Over one in ten young adults in America are neither employed, in higher education, nor pursuing some sort of vocational training. There is no shortage of American minds and hands to grow our labor force, and President Trump's executive order to modernize workforce training programs represents this Administration's commitment to capitalizing on that untapped potential," White House spokesman Kush Desai said in an emailed statement
The big picture: There's little doubt that the immigration crackdown will hit certain sectors and companies, but whether or not it affects employment growth is an open question that hinges on the state of the overall economy.
- If the U.S. falls into recession later this year, as many economists fear, then it would mitigate the impact of a smaller labor force — there would literally be fewer jobs to fill.
That doesn't mean we're out of the woods. There would still be issues in more recession-proof sectors — the need for home health care aides, for example, doesn't much slow down with the economy.
- A recession "is simply a factor that will mitigate things. It won't make the issue go away," says Wendy Edelberg, a senior fellow in economic studies at the Brookings Institution.
The bottom line: The White House has radically reshaped the country's approach to immigration, touching many aspects of Americans' lives.
- The workplace is no exception.
