Businesses across the country are already experiencing significant hiring difficulties as a direct result of President Donald Trump’s aggressive immigration enforcement policies.
A recent report from Clarify Capitol reveals that one in five business owners has lost employees over the past year due to deportations, visa denials, or Immigration and Customs Enforcement (ICE) raids. The findings are based on survey responses from more than 1,000 business owners.
Impact on Businesses and the Economy
President Trump campaigned on a platform promising to dramatically reduce illegal immigration. Since taking office in January, the administration has reported deporting over 100,000 undocumented migrants, according to statements made to Newsweek in April. Despite this, the Department of Homeland Security estimated there were still approximately 11 million undocumented immigrants in the U.S. as of January 2022.
The loss of employees linked to immigration enforcement is taking a financial toll on many companies. Nearly 70% of small businesses reported losing customers as a result of these crackdowns. Furthermore, almost half of small business owners are either relocating or considering moving operations to states with more lenient immigration policies. Hiring difficulties have also forced 72% of small businesses to shut down locations, reduce hours, or delay expansion plans.
Industries particularly vulnerable to these impacts include agriculture, hospitality, and technology. Analysts warn that the long-term consequences could be severe.
Voices from the Field
“Immigrants are not faceless entities,” said Bryan Driscoll, an HR consultant. “They’re our neighbors, colleagues, and friends who contribute significantly to vital industries such as agriculture, hospitality, and technology.”
Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, emphasized that small businesses—not Wall Street giants—are bearing the brunt of these policies. “These are the folks facing worker shortages and employees avoiding shifts due to fear of ICE raids or deportation, even when there’s no real cause,” he said.
Driscoll described the policies as “economic self-sabotage” that disproportionately harms small businesses, which form the backbone of the economy. He called the statistics “a glaring indictment of policies prioritizing fear over economic stability.”
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, pointed out that immigrant communities have historically provided an economic boost to businesses. “Their sudden removal will hurt employers seeking workers and businesses needing revenue, potentially leading to more job losses and closures,” Beene noted.
Looking Ahead
Driscoll warned that the labor market disruptions could persist long-term. “These failed policies are already leading to a diminished labor force, stunted economic growth, and a damaged national image. Immigrants are integral to our communities and economies. Policies should foster inclusion, not division.”
Thompson predicted rising consumer prices as a consequence of labor shortages. “When labor dries up, wages go up, and that cost is passed on to consumers. Expect higher food prices and inflation in labor-intensive industries like agriculture, construction, and hospitality. This ripple effect isn’t being discussed enough.”
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