Mass deportations have been linked to job losses for both immigrant and American-born workers.
The construction industry has been particularly hard hit, with significant employment declines.
There is no evidence that employers are raising wages to attract American workers to fill the jobs left vacant by deported immigrants.
Small businesses are facing increased frustration and economic hardship due to these policies.
Why this matters: Trump's deportation strategy is not only failing to create jobs as promised but is actively harming the labor market and negatively impacting key sectors of the economy.
The National Bureau of Economic Research study reveals that heightened ICE activity is hurting the labor market, especially in sectors like agriculture, construction, manufacturing, and wholesale trade. The construction industry, where around 15% of the workforce is undocumented, has seen a notable decline. For every undocumented worker arrested, roughly six American-born workers also lost jobs in the construction industry.
Overall, construction employment declined by 1.5% in April compared to the previous year, with residential building permits falling 7.4% year-over-year in March 2026. Construction companies are choosing to reduce production rather than increase wages for U.S.-born workers, exacerbating the labor shortage. This approach is creating fewer opportunities for everyone, including U.S. workers. The lack of wage increases is preventing American workers from filling the jobs vacated by deported immigrants, as many find similar or better-paying opportunities in other sectors like fast food.
Previously, projections from the National Foundation for American Policy indicated that Trump’s mass deportation policy could slash the workforce by 15.7 million by 2035. An Axios report from October 2025 also suggested that Trump’s immigration crackdown could reduce GDP growth by about half a percentage point between fiscal 2025 and fiscal 2035, resulting in 6.8 million fewer jobs by 2028.
Q: How are mass deportations affecting the construction industry?
The construction industry has experienced significant job losses, with both undocumented and American-born workers affected.
Q: Are American workers filling the jobs left by deported immigrants?
No, many American workers are not taking these jobs because the wages are not competitive with other available opportunities.
Q: What is the overall impact of Trump’s deportation policy on the economy?
The policy is projected to reduce GDP growth and lead to millions of fewer jobs by 2028.
Trump’s deportation strategy is negatively impacting the labor market, particularly in the construction industry.
The policy is not creating jobs for American-born workers as promised.
Small businesses are facing increased economic hardship.
The construction prices are likely to rise so that employers can afford to attract these people from other non-college-educated workforce into construction.
Do you think this trend will continue? How will the construction industry adapt to the labor shortage? Share this article with others who need to stay ahead of this trend!
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