Industry groups representing construction, agriculture and other labor-dependent sectors are warning the Trump administration that its immigration crackdown is worsening worker shortages and could conflict with other economic priorities, including lowering housing costs and maintaining food production.
Representatives have raised their concerns directly with the White House and the departments of Homeland Security, Labor and Agriculture, CNN reports. The administration's effort to end deportation protections for roughly 1.3 million people who had been authorized to work in the U.S., combined with increased immigration enforcement, has intensified existing labor shortages, industry groups said.
"These two things might be working against each other at the moment," Jim Tobin, president of the National Association of Home Builders, said of Trump's immigration and housing agendas. The residential construction industry is already short between 200,000 and 400,000 workers, he told CNN.
Foreign-born workers accounted for more than a quarter of the U.S. construction workforce in 2024 and more than half of workers in several trades, including roofing, drywall installation and painting. "The more we squeeze labor, the more we're going to increase home prices," Tobin said.
The concerns have contributed to internal debate over worksite enforcement. Homeland Security Secretary Markwayne Mullin has called for changes to employment visa programs while maintaining that undocumented workers should be deported, drawing criticism from immigration hardliners.
Agricultural groups have raised similar concerns, particularly about industries requiring year-round labor that cannot rely on existing seasonal visa programs. Republican lawmakers have also urged changes to the H-2A agricultural visa system.
Evidence of broader economic effects has emerged elsewhere. A Los Angeles County analysis published in February found widespread business losses following immigration enforcement operations, while studies of Houston and Chicago have linked enforcement surges to reduced employment and disruptions in construction-heavy labor markets.
A National Bureau of Economic Research study published in May likewise revealed that increased ICE activity was associated with employment declines among both immigrants and U.S.-born workers. Researchers estimated that for every six undocumented workers removed from employment, one U.S.-born worker also lost a job.
