Immigration Enforcement Linked to Construction Employment Drop

A working paper published by the National Bureau of Economic Research reported that employment among likely undocumented immigrants declined 4 percent on average in areas where Immigration and Customs Enforcement conducted raids. 5 percent. The Associated General Contractors of America estimates that immigrants make up 35 percent of the construction workforce.

The group projects the industry must add 349,000 workers in 2026 to meet demand. S. economy added 181,000 total jobs.

Last July, construction superintendent Robby Robertson told Reuters that half his crew stopped reporting to a $20 million recreation center project in Mobile, Alabama, after an ICE raid at another site in Florida. He estimated the three-week delay would cost $84,000, including daily penalties of $4,000 past the November 1 deadline.

Ken Simonson, chief economist at the Associated General Contractors of America, said the construction industry already faces retirements and limited entry by younger workers. S. population of 18-to-22-year-olds has peaked and that Gen Z workers hold 14 percent of construction payroll positions.

Friday the White House announced that most foreign nationals seeking green cards must apply from their home countries. The policy change affects applicants for permanent residency. Tony Payan, a fellow at Rice University’s Baker Institute for Public Policy, said the H-2B visa program for non-agricultural workers is limited to seasonal or intermittent roles and typically lasts one year.

He stated that construction projects require workers with certifications and insurance who can stay for multiple years. Elizabeth Cox, a research assistant at the University of Colorado Denver and co-author of the NBER study, said fear of enforcement actions has reduced labor-force participation beyond direct removals.

-born roles such as electricians and site managers. Payan said construction firms may raise wages or increase use of automated equipment, though current automated systems remain expensive and require human oversight. He added that higher labor costs are likely to be passed to buyers.