The Trump administration‘s expanding immigration crackdown is sending shockwaves through the U.S. economy, as undocumented and legally restricted immigrant workers avoid work for fear of deportation, according to a new Axios report.
Key sectors — including elder care, restaurants, construction, and agriculture — rely heavily on a shadow workforce of undocumented individuals and legal immigrants with limited work rights. A recent IRS agreement to share tax data with ICE has deepened anxieties, prompting some to skip work, slow spending, or delay essential services.
There are an estimated 8 million unauthorized immigrants in the workforce, with others, like foreign students and asylum seekers, often working outside of legal constraints. Now, heightened enforcement is straining both families and businesses.
Labor economists warn that widespread fear and absences could have recessionary effects. “These are people who have employers who depend on them,” said Julia Gelatt of the Migration Policy Institute. “They could be leaving the workforce in huge numbers.”
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