President-elect Donald Trump’s push for large-scale deportations of undocumented immigrants could significantly harm the U.S. economy, experts warn. Industries like agriculture, construction, and hospitality, which heavily rely on undocumented workers, face potential labor shortages. Deporting millions of undocumented workers could shrink the workforce by up to 5% and slow GDP growth, with a projected reduction of up to 0.4% annually by 2025.
Further, rising wages to offset labor losses might drive inflation higher, complicating economic recovery efforts. Legal and logistical hurdles, however, may temper the extreme outcomes.