As Americans celebrate Labor Day, alarm bells ring: Over 1.2 million immigrants disappear from the labor force!

By: HSEclub NewsSep 02, 2025

Americans are celebrating the annual Labor Day.

Labor Day in the United States is observed on the first Monday of September (this year it falls on September 1st), a day marked by parades and other events. The holiday commemorates the labor movement and recognizes the contributions of the working class to the nation's economic and social development.



Against this backdrop, new data is sounding alarm bells for the U.S. labor market.

Preliminary data shows that over 1.2 million immigrants disappeared from the U.S. labor force between January and July of this year, suggesting that President Trump's mass deportation policy will have a significant impact on the labor market.


Census data analyzed by the Pew Research Center shows that immigrants make up nearly 20% of the U.S. labor force, many of whom work in agriculture, fishing, forestry, construction, and the service sector.


The analysis also shows that both legal and illegal immigration have declined due to Trump's crackdown on immigration.


It is unclear how much of this decline can be directly attributed to voluntary departures and how much to deportations ordered by the Trump administration. Data on undocumented immigrants is extremely difficult to obtain due to underreporting.


Official data from the U.S. Bureau of Labor Statistics also reflects a decline in the labor force participation rate of foreign-born immigrants. It estimates that the number of foreign-born immigrants decreased by approximately 1.2 million between January and July.


The decline in immigrant labor force participation in the U.S. market coincides with an overall decline in the country's immigrant population.


U.S. President Trump campaigned on a promise to deport millions of immigrants from the United States and cited false data claiming that undocumented immigrants "steal" jobs from American citizens.


About 45% of immigrants working in the United States work in agriculture, fishing, or forestry. Participation in these sectors has declined since Trump administration officials directed Immigration and Customs Enforcement (ICE) to launch mass deportations.


"We have a large undocumented workforce," Elizabeth Rodriguez, director of farmworker advocacy at the National Farmworker Ministry, said in an interview. Rodriguez also said that due to the lack of workers, much of the cantaloupe and watermelon harvest was "wasted" during the May harvest.


Other industries, such as construction, are also facing worker shortages following Trump's immigration crackdown. According to the Pew Research Center, approximately 30% of construction workers are immigrants.


The Associated General Contractors of America reported in late August that approximately 92% of construction companies were experiencing project delays due to labor shortages.


For years, many construction companies have struggled to find qualified workers to assist with construction projects. Tens of thousands of immigrant workers have helped fill this gap, allowing projects to be completed on time.


Another major industry that could be impacted is home healthcare. According to the Pew Research Center, immigrants make up approximately 43% of home caregivers. Census Bureau data analyzed by the Kaiser Family Foundation (KFF) indicates that immigrants comprise 28% of the workforce providing direct healthcare services.


However, Trump's decision to end various asylum programs that provide temporary legal status for immigrants could affect the number of providers of home aide services, assisted living facilities, or nursing homes.


The White House claims that the United States has no labor shortage and that President Trump's mass deportation campaign means higher wages and more opportunities for American workers.


However, economists warn that large-scale deportations of immigrants could lead to labor shortages, especially in industries that rely on immigrant workers, such as agriculture, construction, and hotels. These industries could raise wages to attract workers, thereby driving up inflation.

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