The Trump administration’s second term has launched large-scale, indiscriminate immigration enforcement operations across Southern California, inflicting massive economic damage on the region. Businesses in Koreatown, Downtown LA, and other central areas have suffered severe losses, prompting the City of Los Angeles to prepare additional protective measures for residents.

According to a recently released report by Los Angeles County, federal immigration enforcement actions—combined with resulting protests and unrest—have caused approximately $1 billion in lost production, sales, and wages in the LA area since last summer.

The report, jointly prepared by the LA County Department of Economic Opportunity and the Los Angeles County Economic Development Corporation (LAEDC) at the request of the LA County Board of Supervisors, highlights particularly severe impacts on small businesses in immigrant-dense neighborhoods, especially the food-service and restaurant sectors near Koreatown, including Westlake.

Key findings include: Increased business closures in heavily enforced areas
Sharp drop in customer traffic
A decline of about 17,000 daily public transit users

Surveys of small business owners revealed that the majority cited “fear of enforcement” as the main reason customers were avoiding going out or dining out. Los Angeles County is estimated to be home to roughly 950,000 undocumented immigrants, who contribute approximately $240 billion annually to the local economy—accounting for about 17% of the county’s total economic activity. The report notes that undocumented workers make up:37% of janitorial and maintenance workers
25% of food preparation and service workers
40% of construction workers

When these workers are detained, deported, or go into hiding, the result is simultaneous labor shortages and reduced consumer spending.The report identifies ZIP code 91402 (covering Mission Hills, Panorama City, and North Hills) as the area hardest hit by enforcement actions. Other vulnerable neighborhoods include Westlake, Bell, Pico Rivera, and East LA—areas characterized by working-class and immigrant populations, small business sizes, low wage levels, and greater susceptibility to external shocks.In response, Los Angeles Mayor Karen Bass issued an executive directive on the 10th to strengthen protections for immigrants. The new guidelines require:All city departments to develop response plans within two weeks to prepare for federal immigration enforcement
Reaffirmation of LA’s “sanctuary city” ordinance, prohibiting the use of city resources or personnel for federal deportation activities
Restrictions on federal immigration enforcement on city-owned property
Designation of dedicated liaison officers to handle related situations