The possibility of mass deportations in the United States has raised concerns about significant economic consequences, particularly in industries like hospitality, agriculture, and construction. Immigrants, including many without legal status, play a crucial role in supporting the economy. However, with potential deportation policies on the horizon, the future of these industries remains uncertain.
Immigrants: The Backbone of the U.S. Economy
Across Mountain West states, undocumented immigrants contribute significantly to the economy. With an estimated population of 813,000, these individuals collectively earn approximately $26.8 billion in household income and pay billions in taxes annually. Despite their contributions, these workers are often overlooked and face stigma.
In Las Vegas, where the hospitality industry thrives, immigrant workers form a large portion of the workforce. Culinary Union workers, many of whom are immigrants, went on strike in 2024, demanding better wages and working conditions. Ted Pappageorge, a union spokesperson, emphasized, “This is the greatest economy in the world. But this economy needs workers. These are hard-working people who deserve a path to citizenship.”
The Threat of Mass Deportations
President-elect Donald Trump’s proposed mass deportations have sparked fears among immigrant workers. Dulce Santiago, a U.S.-born worker at a Las Vegas resort, highlighted the vital role of immigrants. “This is a melting pot country, and immigrants are the backbone of that. It bothers me when people say they’re here to take jobs or get government benefits. They pay taxes but don’t receive benefits like food stamps or public assistance.”
Economists warn that deportations could shrink the U.S. economy. Robert Lynch, an economics professor at Washington College, noted that the economy could contract by 2.6% to 6.8%, equating to $1 to $2 trillion annually. He referenced historical examples, including Arizona’s stringent immigration policies, which led to a 40% reduction in undocumented workers between 2008 and 2015. This resulted in a 2% economic contraction and disproportionately affected non-college-educated white men.
Key Industries at Risk
Several industries depend heavily on immigrant labor, making them vulnerable to workforce reductions.
- Hospitality and Tourism:
Las Vegas casinos reported record-breaking revenue of over $15 billion in 2024. Immigrant workers, especially in states like Nevada and Colorado, are integral to maintaining this success. For instance, non-citizen immigrants make up 10% of hotel and restaurant workers in Colorado. - Agriculture and Dairy:
In Idaho, nearly all dairy workers are immigrants. Low wages in agriculture help keep food prices affordable, a benefit that could vanish if immigrant workers are deported. - Construction and Maintenance:
Nationwide, 13% of construction workers and 13% of building maintenance workers are undocumented. These jobs are often unappealing to domestic workers due to low wages and demanding conditions. - Education and Research:
New Mexico illustrates another aspect of immigrant contributions, with 21% of its college professors being non-citizens.
Broader Economic Implications
Mass deportations could create labor shortages, leading to higher costs and reduced productivity. For example, if 20% of farmworkers were deported, the agriculture sector would struggle to replace them. Stuart Anderson, executive director of the National Foundation for American Policy, stated, “Research has shown that unemployed workers from other industries are unlikely to take up these roles.”
Recognizing Immigrant Contributions
During the COVID-19 pandemic, immigrant workers were deemed essential, yet their contributions often go unacknowledged. Some states, like Colorado, have tried to address this by establishing initiatives like the “Left Behind Workers” fund, which aimed to support undocumented workers excluded from federal assistance.
The Way Forward
While the debate over immigration policy continues, it is essential to recognize the indispensable role of immigrant workers. Advocates argue that providing a pathway to citizenship would benefit both immigrants and the economy. David Kallick, director of the Immigration Research Initiative, pointed out that the departure of immigrant workers could lead to economic stagnation, affecting everyone.
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