Los Angeles estimates the financial toll of immigration enforcement raids

The economic effects spread widely

Los Angeles County spent months measuring how federal immigration enforcement affected workers, businesses, and local spending. The resulting report puts hard numbers behind disruptions felt across the region.

The study found that enforcement activity reached far beyond immigration cases alone. Reduced work, weaker customer traffic, business losses, and lower tax collections created wider economic effects across communities.

A workforce worth billions

Los Angeles County had an estimated 948,700 undocumented residents in 2023. For its economic analysis, researchers separately estimated that roughly 630,000 undocumented workers were part of the county’s workforce, with jobs spanning retail, construction, manufacturing, services, and other industries.

LAEDC calculated that undocumented workers generate about $253.9 billion in total economic output when direct, indirect, and induced effects are included. That represents roughly 17% of Los Angeles County’s overall economic activity.

Four industries carry much of the load

Undocumented workers are heavily concentrated in several industries that keep the county running. Retail trade accounts for 23.4%, while construction represents another 16.2% of this workforce.

Other services make up 14.5%, and manufacturing accounts for 13.3%. Together, those four sectors employ nearly two-thirds of undocumented workers, making disruptions especially visible in everyday commerce.

Businesses report steep losses

A county business survey found that 82% of respondents reported negative effects from immigration enforcement. More than half, or 52%, experienced reduced daily sales or revenue, while 51% reported decreased customer traffic.

Among businesses that specifically reported reduced sales or revenue, 44% said the decline exceeded 50%. Employers also reported staffing shortages and workers who were afraid to report for shifts.

Millions in losses were documented

Los Angeles County businesses reported about $3.7 million in losses from July through September 2025. The figure represents losses documented through the county’s research rather than a countywide estimate covering every business.

Businesses in areas affected by protests and the downtown curfew also reported more than $200,000 in property damage. The county’s broader analysis identified additional economic effects beyond those documented amounts.

The downtown curfew carried a cost

Downtown Los Angeles operated under a nightly curfew from June 10 through June 16, 2025, after protests connected to federal immigration raids and related enforcement activity.

County researchers estimated the curfew caused about $840 million in lost economic output under their baseline scenario. They also calculated losses equal to roughly 3,920 job-years of employment.

Retail sales dropped across the region

Separate university research found a sharp decline in consumer activity after a major May 2025 immigration operation. Researchers tracked cellphone location data and anonymized spending records.

Across Los Angeles and Orange counties, they estimated more than $625 million in lost retail sales over eight weeks. Nearly $60 million in sales tax revenue was also lost.

Foot traffic fell after enforcement

The university analysis found foot traffic fell by 8% to 10% in immigrant-heavy retail areas after the May enforcement operation. Consumer spending also dropped more sharply afterward.

Researchers estimated spending declines of 20% to 25% in affected neighborhoods. They described fear of enforcement as a major reason residents stayed home and reduced ordinary shopping activity.

The effects reached beyond immigrants

The county report found that immigration enforcement affected both citizens and noncitizens through weaker spending, staffing problems, and reduced business activity across Los Angeles County.

Businesses depending on neighborhood customers felt the slowdown even when owners or workers were not directly targeted. Lower sales also meant less tax revenue flowing to local and state governments.

Little-known fact: The revised budget raises Los Angeles reserves to $515.1 million, about 9% of General Fund revenues.

Employers struggled with staffing

Workforce disruption became another major concern for employers. The county survey found 70% of businesses experienced staffing shortages following enforcement activity, while 59% worried about retaining workers.

About one-third of employers said workers were afraid to report to work. Absences can reduce operating hours, delay projects, and limit the amount of business that companies can accept.

Transit use also declined

Public transportation patterns also changed during the enforcement period. The county report found ridership on bus lines serving communities considered highly vulnerable fell below expected baseline levels.

Researchers estimated that those routes lost about 17,000 monthly riders. Reduced travel can affect workers reaching jobs, customers visiting stores, and transit agencies, which depend on steady passenger activity.

Los Angeles built a detailed record

Los Angeles County’s study stands out because officials formally commissioned a detailed economic accounting rather than relying only on scattered business stories, estimates, or enforcement statistics alone.

The report combined workforce data, business surveys, economic modeling, and transportation information. That approach gave local leaders a broader estimate of how enforcement activity affected the county economy.

Curious why immigration enforcement could cost California more jobs? Learn how businesses and local economies may feel the impact.

The report puts numbers on disruption

The Los Angeles findings show that immigration enforcement can carry economic effects beyond arrests themselves. Workers staying home, customers avoiding businesses, and temporary restrictions can reduce normal activity.

The county’s estimates do not measure every possible cost, but they provide a detailed baseline. Future debates can now compare enforcement goals with effects on jobs, businesses, spending, and revenue.

Wondering why Los Angeles’ aging water pipes are becoming a bigger problem? See what difficult repair choices the city faces underground.

What do you think about Los Angeles estimating the financial toll of immigration enforcement raids? Share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

Read More From This Brand:

• A $72 billion immigration enforcement bill stalls as Congress adjourns
• New York City budget gap could put free parking at risk
• ICE uses facial recognition technology in immigration enforcement