The U.S. construction industry is facing a potential crisis. President Trump’s plan to deport millions of undocumented workers might hit a sector that relies heavily on immigrant labor right where it hurts.

Here’s the reality: immigrants are the backbone of construction. In 2022, they made up about 25% of all construction workers across the U.S. and an even higher 31% of skilled tradespeople. That number jumps to over 40% in states like California and Texas.

And let’s not forget the impact of undocumented workers. They make up a significant part of this labor force, with around 1.5 million undocumented immigrants working in construction—about 13% of the entire workforce. That’s a huge piece of the puzzle that could be at risk.

Potential impact of mass deportations

Taking a huge chunk of workers out of the construction industry would make a tough situation even worse. Labor shortages are already a major challenge, and things could spiral further. In fact, the Associated Builders and Contractors Trade Association estimates the industry will need nearly 454,000 new workers by 2025 just to keep up with demand.

Competition for qualified workers could increase labor costs if the workforce shrinks dramatically. And when costs rise, construction slows down—projects take longer, housing becomes more expensive, and infrastructure upgrades get delayed. That’s a domino effect the economy doesn’t need.

It’s also important to remember that undocumented workers aren’t just contributing their labor but also paying taxes. Billions of dollars in federal, state, and local taxes come from undocumented immigrants working in construction and their households.

Addressing illegal immigration is no simple task, but the economic ripple effects of mass deportations could hit the construction industry hard. With labor shortages already putting pressure on the sector, this kind of disruption could create serious challenges for both construction and the broader economy—especially as we work to tackle housing shortages and build essential infrastructure.

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