The indiscriminate crackdown by the U.S. Immigration and Customs Enforcement (ICE) on immigrants is spreading nationwide, causing widespread disruption for businesses. Labor-intensive service industries such as restaurants, construction, car washes, and manufacturing, which heavily employ immigrants including undocumented workers, are facing operational challenges as existing employees avoid showing up for work and new hiring becomes difficult.

According to the Wall Street Journal (WSJ) and New York Times (NYT) on June 26, 2025, the construction industry, where over a third of the workforce has historically been foreign-born or immigrant workers, is experiencing worsening labor shortages as ICE enforcement intensifies.

The National Association of Home Builders (NAHB) estimates that approximately 3 million construction workers nationwide are foreign-born or immigrants. Over 53% of these workers are concentrated in California, Texas, Florida, and New York. California leads with the highest proportion at 41%, meaning the loss of even a portion of this workforce could severely hinder construction projects.

On-site, construction firms are spending mornings checking attendance and preparing for potential raids, significantly delaying project timelines. Even with job postings, the number of foreign applicants falls far short of demand.
The construction sector warns that delayed new builds could hurt profitability and drive up housing prices.

The restaurant industry is also reeling from the crackdown. Many Korean and other restaurants, which rely heavily on foreign workers, including undocumented individuals, for roles like dishwashing, are struggling as these employees avoid work, and new hires are hard to come by.

A large Korean restaurant reported, “Two dishwashers suddenly stopped showing up, causing operational difficulties. We’re trying to hire new staff, but there are no applicants.” Car wash businesses are facing similar labor shortages.
The Korean apparel industry is also affected, with some firms experiencing production delays as foreign-born production workers fail to report.

Economists note that Southern California’s economy is among the most dependent on immigrant labor nationwide, and the current crackdown and related protests are causing significant damage. Agriculture, a key industry in California, is facing severe disruptions in crop production due to a decline in foreign workers. This disruption is leading to reduced output and rising consumer prices, further burdening low- and middle-income households already struggling with inflation.

By Hwandong Cho