U.S. Labour Market Faces Shift As 1.2 Million Immigrants Exit Workforce.
Preliminary data from the U.S. Census Bureau, analysed by the Pew Research Center, reveals that more than 1.2 million immigrants have left the U.S. labour force between January and July 2025, coinciding with President Donald Trump’s intensified immigration policies. The figures, released ahead of the Labour Day holiday on 1 September 2025, highlight significant disruptions in sectors heavily reliant on immigrant workers, sparking debate about the economic consequences.
Immigrants constitute nearly 20% of the U.S. workforce, with 45% of workers in farming, fishing, and forestry, 30% in construction, and 24% in service industries being immigrants, according to Pew researcher Stephanie Kramer. The sharp decline, which includes both legal and undocumented workers, follows a near-halt in illegal border crossings, as noted by Pia Orrenius, a labour economist at the Federal Reserve Bank of Dallas. “The influx across the border has essentially stopped, which has had a huge impact on job creation,” Orrenius stated, noting that immigrants typically drive at least 50% of U.S. job growth.
In regions like McAllen, Texas, farmers like Elizabeth Rodriguez express concern over labour shortages as corn and cotton harvests loom. In California’s Central Valley, farmworker Lidia, who crossed the U.S.-Mexico border illegally as a teenager, fears deportation, stating, “We need to work to feed our families and pay rent.” Immigration enforcement actions, including raids in Ventura County, have led to crop losses, with National Farmworker Ministry advocate Rodriguez reporting wasted watermelons and cantaloupes during peak season.
The construction sector is also reeling, with contractor Ken Simonson noting stalled projects due to a lack of qualified workers. Healthcare faces similar challenges, with immigrants comprising 43% of home health care aides. Arnulfo De La Cruz, president of SEIU 2015 in California, warned, “What happens when millions of Americans can no longer find a home care provider or when crops go unpicked?”
While Trump’s administration has prioritised deporting “dangerous criminals,” most detainees lack criminal convictions, fuelling fears among workers. Despite the economic concerns, some see the policies as a necessary correction. The data reflects the first decline in the U.S. immigrant population in decades, with net immigration projected to fall to 500,000 annually by 2028. As the nation grapples with these changes, the balance between enforcement and economic needs remains a contentious issue, with communities and industries bracing for further impact.
