US Foreign-Born Labor Force Drops 740,000 in June Amid Immigration Crackdown

The Trump administration's immigration enforcement operations have intensified in recent months, raising concerns about potential labor supply shortages in the US economy. In June, the foreign-born economically active population declined by 740,000 month-over-month according to US Department of Labor data, marking the largest single-month drop since January of last year when Trump's second term began. The enforcement shift followed the March appointment of Mark Wayne Mullin as Department of Homeland Security (DHS) Secretary, who redirected Immigration and Customs Enforcement (ICE) toward what internal sources describe as 'quiet and efficient' operations designed to increase arrest numbers while drawing less public attention.

DHS Shifts Immigration Enforcement to Quiet Operations Strategy

DHS Secretary Mark Wayne Mullin implemented a strategic shift in immigration enforcement after taking office in March. A source familiar with internal DHS strategy told political news outlet Politico on the 7th (local time) that the change was intentional. "That's what Mullin and David Venturella (acting ICE director) wanted. Quieter, smarter operations," the source stated.

Immigration enforcement operations File photo. Source: Yonhap News

The New York Times obtained ICE documents on the 1st showing the agency detained over 10,000 people during the preceding five-day period. ICE set a target to increase daily arrests from 1,000 at the beginning of the year to 2,000 per day. On Saturday the 27th of last month, arrests peaked with over 2,400 detentions in a single day, according to the newspaper's report.

Foreign-Born Labor Force Drops 740,000 in June

The June employment report's household survey revealed significant changes in the labor force by birthplace (non-seasonally adjusted basis). The foreign-born economically active population decreased by 740,000 month-over-month in June, representing the largest decline since January of last year when the Trump second-term administration took office.

Labor force data by birthplace Data source: US Department of Labor

During the three-month period from April to June, the decline totaled 1.529 million. Foreign-born employed persons decreased by 1.249 million during this period. In contrast, the US-born economically active population increased for two consecutive months through June, while the number of employed persons rose for three consecutive months.

Economic activity participation trends Data source: US Department of Labor

Healthcare Sector Reports Caregiver Shortages

The decline in immigrant labor is being felt most immediately in face-to-face service industries such as food service and nursing care. Luis Barajas, CEO of California-based asset management firm International Private Wealth Advisors, told CNBC in an interview on the 3rd about difficulties finding caregivers. "My mother recently suffered four strokes and was hospitalized, and now she's at home. We're looking for a caregiver for my mother. This is the most complicated thing," Barajas said.

He explained that "over the past few years, many people have been afraid of what might happen, especially regarding immigration status," and as a result, some have stopped working in the healthcare industry or "returned to their home countries."

According to KFF, a bipartisan health policy research organization, immigrants account for approximately 3.3 million workers in the healthcare industry, or about one in six workers, representing 17% of the total workforce. Drishti Pillai, policy director at KFF, stated, "The workforce shortages already present in long-term care will worsen, becoming a double burden, so to speak. If there's a shortage of people to perform these roles, it can result in increased costs for services."

FAQ

What happened to the US foreign-born labor force in June? The foreign-born economically active population in the United States declined by 740,000 month-over-month in June according to US Department of Labor data. This represented the largest single-month drop since January of last year when the Trump second-term administration began. During the April-June three-month period, the total decline reached 1.529 million, with foreign-born employed persons decreasing by 1.249 million.

How did immigration enforcement change under DHS Secretary Mark Wayne Mullin? After Mark Wayne Mullin became Department of Homeland Security Secretary in March, ICE shifted to what internal sources describe as 'quiet and efficient' enforcement operations. The strategy aimed to increase arrest numbers while attracting less public attention. ICE documents obtained by The New York Times showed the agency detained over 10,000 people in a five-day period, with daily arrest targets increased from 1,000 to 2,000, and peak arrests exceeding 2,400 in a single day on Saturday the 27th of last month.

Why is the healthcare sector affected by immigration enforcement? According to KFF, immigrants comprise approximately 3.3 million workers in the US healthcare industry, representing 17% of the total workforce or about one in six workers. Industry professionals report difficulty finding caregivers, with some workers leaving the healthcare field or returning to their home countries due to concerns about immigration status. KFF policy director Drishti Pillai stated that existing workforce shortages in long-term care will worsen, potentially resulting in increased service costs.

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