ICE raids across Los Angeles have driven the migrant workforce into hiding, sparking concerns over the sanctuary city’s already rocky economic state. 

As the California city tries to recuperate from wildfires, businesses and developers have revealed they do not have the manpower to get these crucial jobs done.

LA has one of the nation’s largest immigrant workforces, with nearly 38 percent of workers originating outside the US, according to 2023 data.

Estimates from the Public Policy Institute of California suggest than one in 10 workers in the Golden State are undocumented immigrants, while the Migration Policy Institute reports there are roughly 950,000 ‘unauthorized’ residents in LA county. 

Donald Trump’s immigration crackdown has caused a stir among a significant portion of LA’s laborers – especially after a recent bout of raids.

‘Papers or not, fear spreads quickly,’ real estate consulting firm Hilgard Founding Principal Joshua Baum told Bloomberg.  

‘When workers do not feel safe showing up to job sites, it slows down not only the pace of construction but also the willingness to propose new projects in the first place.’ 

Immigration agents arrested more than 1,600 people in LA between June 6 and June 22, Bloomberg reported. 

ICE raids across Los Angeles have driven the migrant workforce into hiding, sparking concerns over sanctuary city’s already rocky economic state

LA (pictured) has one of the nation’s largest immigrant workforces, with nearly 38 percent of workers originating outside the US, according to 2023 data

A Fourth of July carwash raid caught the attention of City of West Hollywood officials, who condemned the sweep that morning. 

Agents were only inside for about 10 minutes, but detained at least two workers, according to the Los Angeles Times. 

Federal officials confirmed on the following day that 37 employees at a LA Home Depot were also taken into custody over the course of the week.

On Monday morning, immigration agents were spotted roaming through downtown LA near MacArthur Park. Some of them were riding horses, while others traveled on foot. 

Agents were seen driving through the streets in armored tanks – stopping people and asking for identification along the way. It is unclear if anyone has been detained.

As a result of this persistent ICE presence, job sites have been deserted, and construction and renovation projects have been delayed. 

‘We don’t have enough people to staff the work and we’re scrambling to figure it out,’ Arturo Sneider, the CEO of Primestor, which manages more than 3,000 apartment development projects and $1.2 billion in shopping centers, told Bloomberg. 

Contributing to what many see as a labor crisis, more than 16,000 structures were wrecked by wildfires from Pacific Palisades to Altadena. 

On Monday, immigration agents were spotted roaming through downtown LA (pictured). Some of them were riding horses, while others traveled on foot

LA Mayor Karen Bass (pictured) vowed to fight against the lawsuit, claiming the raids are causing ‘severe economic damage’

Immigration agents arrested more than 1,600 people in LA between June 6 and June 22 (pictured: an ICE arrest of convicted criminal Jesus Romero-Retana of Mexico)

The damage may cost LA more than $250 billion, the Los Angeles Times reported. 

In order to tackle rebuilding the affected areas, the Urban Land Institute reported 70,000 workers will have to be added to LA County’s 145,000 construction force by mid-2026. 

Roughly 14.5 percent of LA construction workers are undocumented, according to the Los Angeles Economic Development Corp. 

LA officials, as well as California Governor Gavin Newsom, have been fiercely battling federal government efforts to arrest undocumented immigrants. 

During the anti-ICE riots that broke out at the start of June, Trump sent 4,000 National Guard troops and 700 Marines to LA to intervene and protect federal property. 

California filed a lawsuit over the use of the National Guard following the first deployment, claiming Trump ‘trampled’ the state’s sovereignty and sent troops without the governor’s permission. 

Meanwhile, city officials said the demonstrations will ultimately cost taxpayers $32 million.   

Last week, Trump sued LA for failing to comply with federal agents.

Agents were seen driving through the streets in armored tanks, stopping people and asking for identification along the way (pictured)

California filed a lawsuit over the use of the National Guard following the first deployment during demonstrations (pictured: the National Guard at LA riots) 

Donald Trump ‘s immigration crackdown has sparked concern among a significant portion of LA’s laborers – especially after a recent bout of raids (pictured: Christian Damian Cerna-Camacho being arrested by ICE agents for allegedly punching an officer)

LA Mayor Karen Bass vowed to fight against the lawsuit, claiming the raids are causing ‘severe economic damage.’ 

‘We know that Los Angeles is the test case, and we will stand strong,’ Bass said. 

‘We do so because the people snatched off city streets and chased through parking lots are our coworkers, our neighbors, our family members, and they are Angelenos.’ 

During the downtown sweep on Monday morning, FOX 11 reported that Bass rushed to the scene, shouting the agents ‘need to leave right now because this is unacceptable,’ 

West Hollywood officials wrote in their Friday statement:  ‘We reaffirm: our immigrant communities are not threats — they are vital contributors to the social, cultural, and economic fabric of our city, our state, and our nation.’

While local officials have pointed fingers at the Trump administration for LA’s alarming economic state, the Department of Homeland Security (DHS) has issued a blunt response. 

‘If there was any correlation between rampant illegal immigration and a good economy, Biden would have had a booming economy,’ DHS Assistant Secretary Tricia McLaughlin wrote to Bloomberg.