Texas firms hit by immigration crackdown add hours, raise wages
The Dallas Fed survey addresses an issue likely to have a growing impact nationwide, as the Trump administration steps up efforts to detain and deport undocumented immigrants. The federal government is also stripping hundreds of thousands of foreign workers of their authorizations, in addition to Trump's campaign pledge to undertake the largest deportation operation in US history. That's triggering a chilling effect for workers across the economy, with many choosing to lay low as they fear being detained.
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'Top impacts include an inability to hire qualified workers because they lack work permits or legal status, a reduction in the number of foreign-born applicants, and employees missing work due to fear of immigration enforcement,' Emily Kerr, senior business economist at the Dallas Fed, said in a note.
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The more than 5 million immigrants who joined the labor force on net since 2020 have accounted for most of the job creation in the United States. Trump has framed his crackdown as a matter of restoring public safety and protecting American jobs. Government data suggests his efforts are already pushing foreign-born workers out of the labor market.
'We were required to fire over 40 employees that had been with the company for over 20 years or face severe penalties,' one wood-product manufacturer wrote in response to the survey. 'The law and reality are in direct conflict.'
Overall, the Dallas Fed survey showed that employment picked up in July from the prior month, while a gauge of hours worked climbed to the highest reading in almost three years. Businesses overall reported that the availability of applicants had improved over the past three months, while it was becoming harder to retain existing employees.
The survey was conducted between July 15-23 and included responses from 331 business executives in Texas.
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