Economic Impacts of Federal Immigration Enforcement in Los Angeles County

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In June 2025, the federal government intensified enforcement of national immigration policies in Los Angeles County through increasingly aggressive efforts to arrest and detain unauthorized immigrants. These actions included workplace raids across Los Angeles, the deployment of approximately 4,000 California National Guard troops and 700 U.S. Marines, and large-scale operations such as the July 7 sweep through MacArthur Park. This report, commissioned by the Los Angeles County Department of Economic Opportunity, documents the economic impacts of these enforcement activities on businesses, workers, families, and communities across the County.

 

This analysis finds that intensified federal immigration enforcement actions in Los Angeles County are generating substantial and far-reaching economic impacts across businesses, workers, and communities. 

 

Undocumented workers alone generate approximately $253.9 billion in annual economic output, representing about 17 percent of total economic activity in Los Angeles County, and support more than 1.06 million jobs through direct and indirect effects. Disruptions to this workforce reverberated across industries, particularly retail trade, construction, manufacturing, and personal services, where reliance on immigrant labor is highest. 

 

Survey and interview data collected from businesses countywide reveal that 82 percent of respondents experienced negative economic impacts, with more than half reporting reduced daily sales and customer traffic. Among those experiencing revenue losses, nearly half reported declines exceeding 50 percent. Many businesses responded by reducing operating hours, delaying expansion, or temporarily closing.