This story originally aired on “Marketplace” on July 10. Listen to Marketplace each weekday at 3:00 p.m. and 6:00 p.m. on KVPR.
Several recent U.S. Supreme Court decisions could lend support to the Trump administration’s pursuit of mass deportations — a policy choice that brings potentially major economic consequences. This is especially true for a state like California, the world’s fourth largest economy, according to a recent report by the Bay Area Council Economic Institute, a nonpartisan think tank.
The study shows that without undocumented immigrants contributing to California’s economy, the hit to the state’s gross domestic product could be $275 billion annually.
“We knew it would be big, but I don't think we realized how far-reaching the role undocumented workers play in sustaining the economy in California would be,” said Abby Raisz, research director for the Institute and an author on the report.
According to the study, undocumented immigrant workers make up 8% of California’s workforce, and the majority have deep ties to the state with a decade or more of experience in key industries, such as agriculture and construction.
“You lose this workforce, and we're not building homes or harvesting crops. And prices go up for everybody,” Raisz said.
California alone produces three-quarters of the fruits and nuts and a third of the vegetables consumed in the U.S.
“We're talking about workers who are essential to our agricultural industry in our country, who are putting food on our tables every single day,” said Teresa Romero, president of the United Farm Workers union.
Amid the protests in Los Angeles, President Donald Trump acknowledged how important immigrant labor is to agriculture and other industries. Last month, the administration announced it would pause I.C.E. raids at farms, hotels and restaurants, but shortly after, the Department of Homeland Security reversed that guidance.
Research has long shown that the arrival of immigrants helps create jobs and fill parts of the U.S. labor market where there’s little supply, according to University of Southern California economist Manuel Pastor.
He said the findings of the study are encouraging and could help business leaders realize they have a stake in immigration politics.
“The reality of our global economy and of our California economy is a story of interdependence,” he added.
