LA’s economy is hurting because of immigration raids, study shows

A study shows that communities across California are experiencing an economic fallout of fear-driven immigration enforcement. Small business owners have reported steep drops in foot traffic and revenue as residents stay home, afraid of encountering federal agents. 

In addition to the study, the immigrant community in Los Angeles continues to face federal detentions, despite a temporary restriction order. 

On Wednesday morning, video footage showed federal agents raiding, again, the parking lot of Home Depot in the MacArthur/Westlake area. Several people ran, including many street vendors who left their food and other items unattended. 

The Department of Homeland Security (DHS) confirmed that 16 undocumented immigrants were taken. The detentions happened despite the Temporary Restriction Order (TRO) that prohibits immigration officers from detaining people without probable cause.

Los Angeles Mayor Karen Bass said during a press conference that the Southland has experienced chaos and cruelty with the massive immigration raids that have impacted many families. She indicated that to live in Los Angeles, sometimes two and even up to four wage-earners are needed to keep the house, keep food on the table, and support the children.

“When that is taken away from you, that just doesn't destabilize a family, it destabilizes a neighborhood, it destabilizes businesses, it destabilizes a community,” she said. “I am, frankly, worried about those families, and if they're still hanging together, especially economically.” 

The numbers

Reports have shown that communities across California are experiencing the economic fallout of fear-driven immigration enforcement. Small business owners have reported steep drops in foot traffic and revenue as residents stay home, afraid of encountering federal agents. 

Workers–mainly those who serve in the hospitality, education, and care sectors–have lost wages, experienced reduced hours, and face the constant threat of job loss. According to a report by UC Merced’s Community and Labor Center, California experienced a 3.1% drop in private sector workers reporting to work in late May and early June. That’s a trend that hasn’t been seen since the COVID-19 lockdown, when people began to stay home from work.

Recent analysis also shows a decline in private sector labor participation statewide, illustrating the growing toll these raids have taken on workers, families, and the local economy.

Vanessa Aramayo, executive director with Alliance for Better Communities (ABC), said workers and families have been taken away from their workplaces and even places of worship. She said undocumented workers are also essential workers and they are essential to the economic engine of Los Angeles. 

“Their labor supports every sector of our economy and the well being of all workers. When enforcement intensifies, the ripple effects are felt throughout the city and throughout the state,” she said.

The UC Merced report also indicated that during the week of June 8, two days after the first massive raid in Los Angeles, approximately 465,000workers across California left the labor force as raids continued at worksites throughout Los Angeles.

“In our state, even just a couple of miles from here, the Fashion District is experiencing a 30% decline in foot traffic. Many of these businesses in the areas are small businesses, and we know small businesses are the backbone of our local, state and national economies,” Aramayo said. “These rates threaten more than jobs. They threaten families' ability to put food on the table, pay rent and cover basic needs.”

The “Standing United: A Proud City of Immigrants” executive directive, signed by Bass in response to the large-scale, militarized ICE raids, prohibits the use of City resources for federal immigration enforcement, requires department-level preparedness plans, expands access to city services, and increases transparency around federal enforcement activity.

Bass said during the past weeks she has visited impacted neighborhoods, organized clean-up and revitalization efforts, launched resource webinars, and met with regional and international leaders to advance support for immigrant communities.

Besides the executive directive, Bass said she will continue to work with local leaders, groups and nonprofits that support the immigrant community. 

“I know that everybody standing with me here, we stand alongside each other and we are going to continue fighting this until our communities are back to being peaceful like we were on June 5,” she said. 

DHS avoided responding if they had violated the TRO and just confirmed Border Patrol conducted a targeted raid, dubbed Trojan Horse, with 16 detainees from Guatemala, Mexico, Honduras, and Nicaragua.