Immigration Crackdown Risks $278B Hit to California Economy

A new study by the Bay Area Economic Institute and UC Merced warns that an immigration crackdown could shave up to $278 billion off California’s $4 trillion economy. About one in five of the state’s 10.6 million foreign-born residents lack legal status. Key sectors—agriculture, construction and hospitality—depend heavily on immigrant labor. Farmworkers make up 63% of the agricultural workforce, with 24% undocumented. Over 60% of construction workers are foreign-born. The report emphasizes that without immigrant labor, California’s $49 billion agriculture industry, construction projects and hospitality services would face severe shortages. White House officials argue the domestic labor market can fill these jobs, prioritizing U.S. citizens. Industry leaders counter that skill gaps and limited automation make immigrant labor indispensable. The analysis highlights that the immigration crackdown could disrupt food production, slow construction and reduce tourism capacity, risking higher costs and slower growth statewide.