Most US employers surveyed believe immigration enforcement will affect their workplaces and lead to staffing shortages.

Impact of Immigration Enforcement on U.S. Workplaces

An employment law firm recently surveyed 349 executives, in-house lawyers, and senior HR professionals across various sectors. The aim was to understand how federal immigration policies, particularly those during the Trump administration, were affecting labor dynamics. There’s a palpable concern regarding the reliance of some businesses on undocumented labor.

When asked about the anticipated effects of U.S. Immigration Enforcement over the next year, 26% of respondents felt there would be a “significant impact,” while 44% expected a “moderate impact.” The remainder indicated little to no effect.

Regarding their concerns over staffing challenges tied to the Trump administration’s immigration policies, 32% were “slightly interested,” 20% “moderately interested,” and a mere 6% expressed being “very interested.”

Notably, larger employers showed heightened concern; 84% expected either a major or moderate impact from ICE and DHS enforcement measures, while 69% expressed worries about staffing issues.

Both manufacturing and retail/hospitality sectors seemed most anxious about potential government actions related to immigration law enforcement.

Interestingly, while 75% of all employers marked immigration as a critical issue, this figure surged to 83% among manufacturing employers.

In the retail/hospitality sector, an overwhelming 89% believed ICE and DHS enforcement would significantly affect their workplaces.

Research from the Pew Research Center indicates that as of 2022, around 8.3 million undocumented individuals were part of the labor force, with a significant number employed in construction.

Employers have legitimate fears; projections suggest that ICE audits could rise to 15,000 annually, alongside over 100 raids per year. Yet, as of now, these enforcement actions have not materialized into formal raids in workplaces.

The report pointed out that these concerns stem from the possibility of illegal immigration affecting legal immigration levels, which could drop by 40% during the president’s first term. This situation presents challenges for employers seeking skilled talent.

Jorge Lopez, who heads the Immigration and Global Mobility Practice Group, remarked on the surprising level of concern from clients regarding these issues.

A White House spokesperson framed potential staffing shortages as an opportunity to tap into the underutilized American workforce. “Over ten percent of young Americans aren’t in higher education or vocational training,” he noted, emphasizing the government’s commitment to nurturing domestic talent.

Furthermore, nearly 85% of those surveyed expected changes in workplace regulations and policies under the Trump administration to have repercussions for businesses. Interestingly, Littler reported that 60% of large organizations were worried about lawsuits related to diversity, equity, and inclusion (DEI) initiatives.