I just reviewed a rather concerning report about what is happening in California. The recent ICE raids in Los Angeles, especially in commercial areas like the Fashion District, caused an economic impact much more severe than many thought.

What caught my attention was the magnitude of the damages. According to data from the Department of Economic Opportunity and the local economic development corporation, 82% of surveyed businesses reported significant losses. But here’s the most striking part: nearly half of those businesses lost more than half of their revenue. In just three months, over $3.7 million in business losses were recorded.

The main reason was quite clear in the analysis. When ICE raids in California intensified, migrant employees simply stopped showing up to work out of fear. 70% of businesses experienced staff shortages. Imagine the impact: 33% of employers said their workers were afraid to leave their homes, and 59% expressed serious concern about maintaining their workforce.

What’s interesting is to see how this affects the broader economy. Workers with irregular immigration status generate approximately $253.9 billion in economic output in the county, representing 17% of the GDP. They support more than 1.06 million jobs and generate $80.4 billion in labor income in key sectors like construction, manufacturing, and services.

In response, the DEO launched the Small Business Resilience Fund last September. So far, they have awarded over $1.53 million in grants to 367 affected businesses, with plans to expand to 650 more. They also implemented webinars and guides on workers’ and entrepreneurs’ rights.

It’s a reminder of how immigration policies have real and measurable economic consequences. Job stability and consumption are pillars of any local economy.