ICE Enforcement Creates Labor Crisis in Construction

Immigration Enforcement Deepens Construction Workforce Shortage

The construction industry faces an unprecedented labor crisis as ICE (Immigration and Customs Enforcement) enforcement actions intensify across the nation. According to a November 6, 2025 NPR report, ICE checkpoints and workplace raids are creating widespread fear among construction workers, both documented and undocumented, significantly worsening an already severe labor shortage.

The Scope of the Challenge

Construction has long relied on immigrant workers. On average, one in three construction workers is foreign-born, according to industry data cited by the Associated General Contractors of America (AGC). This demographic reality makes the industry particularly vulnerable to immigration enforcement actions.

In just the first nine months of Trump's second term (2025), ICE has deported approximately 400,000 people, with an estimated 1.6 million additional workers self-deporting out of fear, according to the Department of Homeland Security's September 2025 statement. These numbers directly impact construction project timelines and costs.

Evidence of Impact from Major Contractor Organizations

An AGC survey conducted in summer 2025 revealed the true scope of the problem:

• 92% of construction firms struggle to fill open positions
• 28% of surveyed firms reported being affected by immigration enforcement in the past six months
• 5% experienced ICE agents visiting their jobsites
• 10% lost workers due to actual or rumored ICE raids
• 20% reported that subcontractor staffing was impacted by ICE concerns

Real-World Consequences on Major Projects

Rurick Palomino, a Peruvian-born U.S. citizen and construction firm owner working on the $128 million Theodore Roosevelt Bridge refurbishment in Washington, D.C., described the real impact: "There's plenty of work — a lot of mega-projects coming — but I'm afraid to take more because I don't have the manpower." Palomino previously employed 45 workers but has scaled back significantly.

What This Means for Contractors

The immediate consequences include project delays, escalating costs, and incomplete work pipelines. Construction projects proceed sequentially—if foundation and framing are complete but roofing crews don't show up, the entire project stalls, driving up costs.

Sources: NPR/OPB (November 6, 2025), Associated General Contractors of America (2025), National Association of Home Builders (2025)