The mass deportation of the country’s 11 million undocumented individuals would hurt the U.S. economy. Studies and many economists suggest that removing workers central to key industries in the United States would increase inflation as well as food and housing costs.
Recent studies also suggest that round ups and removals of the undocumented will reduce the country’s gross domestic product (GDP) and hurt its tax base. Studies of past large-scale enforcement efforts also suggest that deporting these workers could harm the employment prospects of U.S. citizen workers.
These findings strongly suggest that legalizing individuals — not deporting them — would strengthen the U.S. economy by allowing them to fully participate in the labor market and align with the immigration goals of Latino voters who prioritized legalization over mass deportations.
Mass Deportations Will Target Workers Essential to Reducing Inflation and Other Costs
Mass deportation is costly for the U.S. because it removes workers who play a key role in our economy. In 2020, the Pew Research Center estimated undocumented workers formed 22% of all agriculture jobs, 15% of all construction jobs and 8% of all manufacturing jobs. More broadly, the Center noted the U.S. workforce had 8.3 million undocumented workers in 2022, representing 4.8% of all U.S. workers.
Mass deportations could impact the cost of specific goods and services in these sectors. In the case of agriculture, deporting undocumented workers could lead to higher food prices because fewer individuals would be able to pick produce and process food products. These actions could also impact housing prices by reducing the number of workers who could help construct more housing, which would keep these prices high due to a shortfall in homes at a time when Americans — including Latinos — are struggling to purchase a home.
Deporting these individuals will also undermine the nation’s efforts to fight inflation. Economists believe the loss of immigrant labor during the COVID-19 pandemic helped fuel inflation by reducing the production of goods and services needed to meet demand from consumers, increasing prices. Some studies show that mass deportations could repeat this scenario. A June 2024 study found that deporting 7.5 million undocumented workers would produce three years of higher inflation, which would peak at 3.1% points.1