The crackdown on illegal immigrants is having a significant impact on industries like construction that rely heavily on migrant labor.

By Fenix Suriel

The latest Trump administration attack on immigration is tormenting a construction industry already hurting from a labor shortage. 

Coordinated ICE raids, which began on June 6, 2025, have not just resulted in numbers and statistics. They have affected real people, including asylum seekers, visa overstayers, union leaders, and individuals with minor offenses. These are not just figures, but human lives impacted by the crackdown.

The Trump administration’s latest offensive against illegal immigration is not just a short-term disruption. It is a significant issue that is leaving lasting effects on the construction industry, with implications that stretch far into the future.

“Immigrant Crackdown Worries Food and Construction Industries,” said Donald Grimes to the Wall Street Journalism. Grimes is a labor economist at the University of Michigan.

The construction industry has the highest percentage of undocumented workers at 13.7%, according to the American Immigration Council. These workers often fill crucial roles, contributing to more than 20% of the construction labor force, including in specific trades such as roofing and painting, according to the Center for American Progress.

Immigration has long played a pivotal role in shaping the labor landscape of the United States, particularly in labor-intensive industries such as construction. Immigrant workers, both documented and undocumented, comprise a substantial portion of the construction workforce. 

Recent immigration crackdowns, including stricter border enforcement, workplace raids, visa restrictions, and increased deportations, have had significant repercussions on the construction industry. 

Ripples In The Economy

One of the most immediate and direct effects of immigration crackdowns is a tightening of the labor supply. According to the U.S. Bureau of Labor Statistics, foreign-born workers accounted for 25.3% of the construction labor force in 2020. Undocumented immigrants fill a significant portion of these roles, often due to a shortage of willing domestic workers.

When immigration enforcement intensifies, many undocumented workers either leave the labor force or are removed through deportation. This creates a sudden and severe shortage of skilled labor. In turn, construction firms struggle to find qualified replacements, leading to understaffing on job sites. The resulting labor shortage drives up wages as companies compete for a smaller pool of workers, increasing operational costs across the industry.

“The administration is out of control and poses a threat to constitutional rights,” said Gavin Newsom, governor of California.

A reduced labor supply inevitably leads to delays in construction timelines.

“At the end of the day, it’s going to have an impact on projects,” said Bill Wilhelm, President of R.D. Olson Construction. 

Projects take longer to complete, which affects everything from residential housing developments to commercial real estate and public infrastructure. This is particularly problematic in a time when the U.S. is facing a nationwide housing shortage and growing demand for infrastructure upgrades under federal investment initiatives.

Immigrants have thrived in filling roles in the economy, often taking on positions for lower wages than domestic workers. Domestic workers usually expect higher wages, more benefits, and greater job security than undocumented workers, which adds further to the cost pressures on construction companies.

The impact of immigration crackdowns is not evenly distributed. 

States and metropolitan areas that rely heavily on immigrant labor experience sharper disruptions. Cities such as Texas, New York, and Miami all have high immigrant populations. 

The Pew Research Center estimated that in 2022, more than 8 percent of the population, as well as the workforce, was made up of unauthorized immigrants in the states of Nevada and Texas. These denser cities are experiencing a greater impact, whereas regions with a more balanced labor composition may feel the effects less immediately.

“You cannot gut the labor force that builds this city and expect business as usual. The crackdown is shrinking crews, raising costs, and increasing project timelines,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, in a January press briefing.

In New York

In New York City, almost 60% of construction workers are foreign-born, according to the Office of the New York Comptroller. 

This has raised concerns for many city officials who see Trump’s actions not just as a labor issue, but a broader economic threat to the state.

“We have 470,000 undocumented workers in New York. If they vanish overnight, as this administration seems to be aiming for, construction sites will stall and housing prices will rise even faster,” said Governor Hochul. 

The construction industry is a key driver of economic growth, contributing approximately 4% to the U.S. GDP and employing more than 7 million people.

In response to the shrinking immigrant labor force, some industry leaders advocate for investment in domestic workforce development. Trump has plans to reshape the construction industry landscape.

In April 2025, Trump signed an executive order directing the Labor, Education, and Commerce Departments to overhaul federal workforce programs. The executive order focuses on apprenticeships and skilled-trade training, including those in construction. 

“Prepare citizens for the high-paying skilled trade jobs of the future,” said Trump.

While the Trump administration’s focus on domestic workforce development is a constructive long-term strategy, the immediate effects of the crackdown are significant. Rising construction costs contribute to higher home prices, exacerbating housing affordability issues. Delays in infrastructure development hinder public services and business productivity. These factors, if not addressed, could have long-term implications for the construction industry and the broader economy.

While this is a constructive long-term strategy, it cannot quickly fill the void left by an abrupt crackdown. Training a new generation of construction workers requires years of investment, both in time and resources, and many younger Americans show limited interest in physically demanding, lower-wage labor.

“The construction industry, which already depends heavily on foreign-born labor, could face severe disruptions,” said Kathy Hochul, New York State Governor.

A constrained construction industry can deter private investment, especially in real estate, manufacturing, and logistics, where timely project delivery is crucial. These factors can undermine economic competitiveness and, in time, slow the pace of growth.

Fenix Suriel is a journalist based out of New York City and a student at the Craig Newmark Graduate School of Journalism.

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