Skip to main content
Know This Now

Know This Now, August 21, 2025: As Economists Warn Shrinking Immigrant Labor Force Puts U.S. Growth at Risk, ABIC Calls for Action with Industries Facing the Crisis Already

By August 21, 2025August 27th, 2025No Comments

Top News: As Economists Warn Shrinking Immigrant Labor Force Puts U.S. Growth at Risk, ABIC Calls for Action with Industries Facing the Crisis Already

Economists say the U.S. labor pool is contracting as a result of Trump administration policies reducing immigrant participation. The trend raises concerns for the health of the broader U.S. economy.

  • U.S. labor force declined for 3 consecutive months, first time since 2010.
  • Labor force participation fell for BOTH foreign-born and native-born workers:
    • -0.3 percentage points for native-born workers (YoY).
    • -1.2 percentage points for foreign-born workers (YoY)

The foreign-born labor force has declined by ~1.2 million workers since January. Jerome Powell, chair of the Federal Reserve, cited immigration policy as a factor behind the slowdown in the labor supply in comments in July.

″[B]ecause of immigration policy really, the flow into our labor forces is just a great deal slower,” Powell said.

The official U.S. labor force is shrinking at a rate normally seen during the depths of economic crises, Business Insider reports.

With baby boomers retiring and fertility rates low, economists stress that U.S. growth depends on immigration. Without it, experts warn, labor shortages could fuel inflation, raise housing costs, and slow the economy.

Moody’s chief economist Mark Zandi told Fortune that Trump is deporting so many immigrants, it could cause inflation to hit 4% next year.

“Foreign-born labor force is declining, and the overall labor force has gone flat since the beginning of the year,” he said. “That’s causing tightening in a lot of markets, adding to costs and inflation.”

Rolling Stone Features ABIC Voices Warning of Worsening Ag Labor Shortages and How it Could Impact the Food System

ABIC director of legislative affairs James O’Neill and ABIC member and farmer Shay Myers were featured in a Rolling Stone piece about the American agriculture industry’s reliance on immigrants.


‘Seat the Table’ Rallies Hospitality Industry Leaders Calling for Action on Work Permits and Labor Shortages

One industry that is already hard hit by labor shortages is hospitality and restaurants.

Axios, Fox and ABC reported on our ‘Seat the Table’ launch last week, including our special guest U.S. Representative Gabe Evans (R-CO8) and his support for the Dignity Act, and perspectives from Seat the Table members:



ABIC, the James Beard Foundation, the Texas Restaurant Association and the Latino Restaurant Association, plus 14 more national and local organizations are joining forces to call for work permits for immigrant workers and a solution to the labor shortage restaurants, bars, and hotels are experiencing:

“This is not just a risk to our immigrant population, it is a risk to every American,” Knight told ABC, referencing the ripple effects of labor shortages on the economy. 

ABIC CEO Rebecca Shi shared with Axios that Americans are ready for solutions:

“Voters across party lines are demanding action,” ABIC CEO Rebecca Shi said in a statement, citing a recent ABIC poll showing that 83% of voters in battleground states support these work permits.

Take Action with ABIC

Secure America’s Workforce: D.C. Summit | Oct. 21–23, 2025

Registration is open for ABIC’s biggest fly-in yet — and we want you with us in Washington, D.C.

This October, join business leaders, advocates, and coalition partners from across the country to:

  • Speak directly with lawmakers about real workforce challenges
  • Champion commonsense, bipartisan immigration solutions
  • Stand united with leaders from agriculture, construction, restaurants, hospitality, healthcare, and more

Already registered? Help us build momentum,  forward this invite to your network.

Register now or share the link: RSVP Here

More from the ABIC network

Mayors and Leaders from Rio Grand Valley Region of Texas Call for Sensible Immigration Solutions with ABIC and Comité de 100


Mayor Javier Villalobos of the City of McAllen, Mayor Ramiro Garza of the City of Edinburg, Comité de 100, RGV Partnership, RGV Hispanic Chamber of Commerce, Camara de Comercio Internacional, and ABIC urged Congress and the Trump Administration to pass sensible immigration reforms, including legal work permits and bipartisan proposals like the Dignity Act and Farm Workforce Modernization Act at a press event covered by Fox and Telemundo.

A few highlights from the speakers:

“Latinos understand the role their voices play in this country’s elections. They want policies that expand economic opportunity, not fear or inflation.”
-Massey Villarreal, CEO, Precision Task Group and Comité de 100 Co-Chair

“We care deeply about our people and remain committed to helping in any way we can; especially our hardworking farmworkers.”

-Mayor J.R. Garza, City of Alamo

“[We’re] carrying forward the message of the importance and the urgency of reform.”
-Dante Galeazzi, President, Texas International Produce Association 

About 65% of agriculture and 59% of construction workers in the region are foreign-born, and Latinos make up 87.7% of eligible voters in the Valley.

ABIC Hosts Roundtable with Rep. Young Kim (R-CA) on the Dignity Act in Yorba Linda, CA

Over 40 of ABIC’s Californa Members hosted Rep. Young Kim (R-CA 40)  for a discussion on the Dignity Act of 2025, which she co-sponsored with Rep. María Elvira Salazar (R-FL 27) and Rep. Veronica Escobar (D-TX 16). We thank Rep. Kim for her leadership in advancing a bipartisan, commonsense approach to immigration that strengthens border security while providing dignity and opportunity for law-abiding, hardworking immigrants.

ABIC Brings Together Utah Leaders on Workforce & Immigration

ABIC convened over 60 Utah business and community leaders, including U.S. Rep Mike Kennedy (R-UT 3) ABIC Chairman Bob Worsley, and Zion Bank Chairman Scott Anderson to address the state’s urgent workforce challenges. Immigrants play a vital role in Utah’s growth, contributing nearly $2 billion in taxes and holding $5.8 billion in spending power. Leaders emphasized the need for a strong, reliable workforce to meet the demands of agriculture, construction, hospitality, and infrastructure — industries already facing shortages.

ABIC member Janille Baker, whose father owns a dairy in Utah and who herself runs a ranch in Nevada, shared their struggles with labor shortages. About 50% of her ranches’ workers are foreign-born, and interest from U.S. workers is low due to the hard labor, similar to issues on her father’s farm.

News Briefing:

NPR: Some Florida Farmers Reduce Crops As Deportation Fears Drive Workers Away

Florida strawberry farmers say Trump’s immigration crackdowns are crippling their industry. Many workers have fled or gone into hiding, and costly H2A visas can’t fill the gap. One farmer says he’ll slash production by 65% next year as a result.

Farm groups warn agriculture has lost 155,000 workers in four months, the biggest drop in a decade. They say few Americans apply for these jobs despite increasing wages and are urging reforms to the H2A system and legalization for longtime workers, warning U.S. food security is at risk.

“The government is killing farming,” says one farmer. “This is going to end us.”

AP: Las Vegas Tourism Down Amid Immigration Crackdown

Las Vegas is experiencing a tourism slump, with officials blaming President Trump’s tariffs and immigration crackdown. Mayor Shelley Berkley noted that visits from Canada and Mexico — key markets — have dropped sharply. Union leader Ted Pappageorge dubbed it the “Trump slump,” saying even domestic visitors are avoiding the city as immigrants and international travelers feel unwelcome.

“If you tell the rest of the world they’re not welcome, then they won’t come,” Pappageorge said.

El Paso Times: Dallas Fed Warns Texas Economy Slowing Amid Immigration Policies

A new Dallas Fed report shows Texas’s economy is weakening, with job growth slowing, construction softening, and inflation climbing. Economists cite uncertainty from Trump’s trade war and strict immigration enforcement as key drivers.

Ray Perryman, a longtime Texas economist, said as much as half of the agricultural workforce, 40% of construction workers and 30% of hospitality workers are undocumented immigrants.

“If you want to build anywhere, grow anywhere or go anywhere, you really need these folks,” Perryman said. 

FarmProgress: Farmers Say ‘We Have to Have Mexico Labor’

Farmers across Texas say immigrant labor is indispensable to agriculture, from dairies to peach orchards. Producers like Brad Bouma and Jamey Vogel stress that American workers won’t take these demanding jobs, leaving farms dependent on Mexican labor. Complex visa systems like H-2A and TN fall short for year-round needs, leaving farms struggling to hire. 

“And those people that come up here [from Mexico] to work in the orchards are good people,” Vogel said. “They want to support their families. They’re not involved with the cartel. They’re good, hard-working people.”

Get Involved

  1. Secure your spot today for ABIC’s Secure America’s Workforce — October Fly-In and Policy Summit in Washington, DC. Register here.
  2. Join one of ABIC’s Councils of 100 and let your voice be heard with your peers – sign up here. The Council of 100 is a coalition of top business leaders working to advance common-sense workforce solutions.
  3. Share your story: If your business is interested in engaging with the press as part of ABIC or amplifying your story on social media, take this quick survey to let us know your preferences. 
  4. We’re hiring! ABIC is looking for a new Field Director to help lead our national campaigns. Learn more and apply here.

Key Employer Resources:

ABIC in the news. . . 

View all recent coverage here