Immigration enforcement actions are creating critical labor shortages across the U.S. construction industry, threatening project timelines and driving up costs, according to a new NPR investigation published November 6, 2025.
With more than one in three construction workers being foreign-born, the construction sector faces unprecedented challenges as Immigration and Customs Enforcement (ICE) increases workplace raids and checkpoint operations. The findings reveal widespread disruption to construction projects nationwide, from major federal infrastructure work to residential building.
A recent survey by the Associated General Contractors of America (AGC) reveals the scope of the problem: 92% of construction firms struggle to fill positions. More concerning, 28% of surveyed firms reported being affected by immigration enforcement actions in the past six months.
The specific breakdown shows:
Ken Simonson, chief economist at AGC, emphasizes the real-world consequences: "Firms say it's extremely disruptive when workers fail to show up or leave in the middle of a task. It means jobs are completed more slowly, driving up costs for the owner and contractor."
The impact extends far beyond simple labor shortage statistics. Construction projects operate in sequential steps—foundation, framing, roofing, finishing. When workers fail to show up due to immigration enforcement concerns or actual detentions, entire project phases stall, creating cascading delays.
A contractor working on the $128 million Theodore Roosevelt Bridge refurbishment in Washington, D.C., illustrates the challenge. Despite having 30 employees—all legal residents or citizens with proper documentation—immigration enforcement creates anxiety that affects work productivity. When immigration agents stop workers heading to the jobsite, even legally documented employees face hours-long detentions that disrupt the entire crew's ability to complete daily tasks.
For residential contractors, the problem is even more acute. The home-building industry loses an estimated $11 billion annually due to labor shortages, according to the Home Building Institute (HBI). With immigrants concentrated in trades like roofing, drywall installation, painting, and plastering—occupations that face the highest shortage rates—immigration enforcement directly threatens homebuilding capacity.
Certain states face disproportionate impacts. California and New Jersey have 41% foreign-born construction workers each. Texas and Florida both exceed 38%, while Georgia reaches 30%. These states are experiencing the most acute enforcement-related disruptions.
Immigration raids create palpable anxiety among construction workers regardless of legal status, according to Sergio Barajas, head of the National Hispanic Construction Alliance. This fear alone is reducing crews and slowing productivity.
In response to enforcement concerns, some Latino-owned construction firms are removing business signs from trucks and vans to avoid being identified as construction crews. This defensive strategy reveals the pervasive impact of enforcement actions beyond just legal consequences.
Construction economist Nik Theodore from the University of Illinois Chicago warns that the enforcement crackdown creates a vicious cycle: "We're not just losing workers—we're losing workers who know how to drywall, lay flooring. There are real skill gaps."
The economic ripple effects are already visible. Homebuilder Scott Turner in the Austin area reports that while ICE raids haven't yet been high-profile enough to drive major cost increases in his market, "they can only have one effect on the cost of building a home, and that's to raise it."
The Department of Homeland Security announced that ICE deported 400,000 people since the start of Trump's second term in January 2025, with an estimated 1.6 million additional self-deportations. If deportation efforts intensify, industry experts predict construction impacts will escalate significantly.
AGC's Ken Simonson expressed concern: "If the enforcement actions are stepped up, this is just the cusp of what we'll be seeing."
The Economic Policy Institute estimated that if the Trump administration meets its goal of deporting 4 million people by 2028, the construction industry would lose 1.4 million immigrant workers. This would result in a net loss of 861,000 jobs among U.S.-born workers—many construction firms would be forced to scale back or close entirely.
Meanwhile, the White House maintains that American workers will fill the labor gap. However, contractors unanimously report that domestic workers are unavailable for construction work, largely due to industry reputation, pay, and working conditions. As one experienced contractor stated: "There's not anyone sitting on the sidelines. Unemployment is low. Where are you going to get them at? The trades aren't sexy."
The construction industry's proposed solution: a visa program for immigrant workers. Contractors argue that even without offering citizenship pathways, allowing good workers to operate without fear of deportation would solve the labor crisis while maintaining enforcement against workers with criminal records.
Source: NPR, "ICE is sending a chill through the construction industry," November 6, 2025. Data sourced from AGC survey, Home Building Institute, and NAHB research.
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ICE immigration enforcement is disrupting construction labor. 92% of construction firms struggle to fill positions, with 28% affected by enforcement actions.
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