Economy May 29, 2026 11:55 PM

Brookings: 668,000 Jobs Lost After Large-Scale ICE Enforcement Operations

Study links intensified ICE activity in 86 cities to broad declines in employment and local spending

By Nina Shah

A Brookings Institution analysis estimates the Trump administration’s intensified Immigration and Customs Enforcement operations across major U.S. cities last year reduced employment by about 668,000 jobs and depressed local economic activity. Researchers examined 86 cities with the largest increases in ICE arrests in the first half of 2025 and found widespread effects across sectors, including construction and arts and entertainment, as well as reduced consumer spending in immigrant-heavy neighborhoods.

Brookings: 668,000 Jobs Lost After Large-Scale ICE Enforcement Operations

Key Points

  • Brookings estimates that intensified ICE enforcement across major U.S. cities last year led to about 668,000 lost jobs, based on increases in arrests in 86 cities in the first half of 2025.
  • Industries most affected included construction and other sectors with higher shares of undocumented workers; job declines were also found in arts and entertainment.
  • The study found notable declines in consumer spending in immigrant-heavy neighborhoods, with Los Angeles areas seeing as much as a 25% drop in the two months after a local ICE enforcement announcement.

Key finding: A Brookings Institution report found that the surge in Immigration and Customs Enforcement (ICE) activity across major U.S. cities last year corresponded with an estimated 668,000 job losses and weakened local economic activity.

The study focused on 86 cities that experienced the largest increases in ICE arrests during the first half of 2025. Researchers estimated that each additional arrest in these cities was associated with roughly 13 lost jobs, a multiplier that produced the headline estimate of about 668,000 fewer jobs overall.

Scope of the disruption: The analysis concluded that the economic impact extended beyond undocumented workers to affect businesses, household spending, and employment across multiple industries. Construction and other sectors that typically employ larger shares of undocumented workers recorded some of the steepest employment declines. The report also identified job losses in areas such as arts and entertainment, where immigrant employment is relatively limited.

According to the authors, businesses cut staffing levels and curtailed activity as enforcement operations became more visible and concerns spread through local communities. The report estimated that between 51,000 and 297,000 of the lost positions would have been held by U.S.-born workers, noting that firms dependent in part on immigrant labor often scaled back operations after experiencing labor shortages, which in turn affected native-born employees.

Consumer spending effects: The Brookings researchers pointed to weaker consumer spending in neighborhoods with high shares of foreign-born residents. They cited separate research showing that spending in Los Angeles neighborhoods with large foreign-born populations fell by as much as 25% in the two months following the public announcement of a local ICE enforcement campaign.

Data and methodology: The study combined ICE arrest records compiled by the Deportation Data Project with employment estimates from labor market analytics firm Lightcast and federal payroll records. Using these sources, researchers linked increases in arrests to local labor-market outcomes in the selected cities.

Context and responses: Brookings researchers described the administration’s approach as distinct from previous enforcement efforts because of its scale and visibility, producing what they termed a broader "chilling effect" on local economies. The White House did not immediately respond to a request for comment.

Political framing: The findings arrive amid ongoing arguments from the Trump administration that stricter immigration enforcement protects American workers, while critics contend that large-scale enforcement actions can disrupt labor markets and economic activity in affected communities.


Note on limits: The report’s estimates derive from the data sources and methodology specified by the authors; where the article’s original material noted ranges or estimates, those ranges are retained rather than narrowed.

Risks

  • Labor-market disruption - Large-scale enforcement actions may create labor shortages that force businesses to scale back operations, affecting sectors such as construction and related industries.
  • Demand shock in local economies - Reduced consumer spending in immigrant-concentrated neighborhoods can depress revenues for retail, hospitality, and entertainment sectors.
  • Broader employment spillovers - Employment declines may affect both immigrant and U.S.-born workers, with the report estimating between 51,000 and 297,000 lost jobs would have been held by native-born employees.

More from Economy

Market Resilience Amidst Sector Shifts: Dow and Russell 2000 Reach New Heights Jun 4, 2026 Australian house price momentum to slow to four-year low as borrowing costs bite Jun 4, 2026 Kevin O’Leary Scales Back Utah Data Center Plan Amid Lawmaker Concerns Jun 4, 2026 Fed's Daly Says AI Could Exert Downward Pressure on Prices Over Several Years Jun 4, 2026 Putin Says Moscow Willing to Make Concessions if Kyiv Reciprocates Jun 4, 2026