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California Economy Faces $278 Billion Shortfall if Mass Deportations Proceed

The Bay Area Council Economic Institute report warns that deporting 2.3 million undocumented workers would shrink California’s agriculture output by 14 percent.

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Overview

  • The analysis projects a $278 billion loss in economic activity when accounting for direct labor contributions, supply-chain disruptions and household spending
  • Researchers estimate almost 2.3 million undocumented immigrants represent 8 percent of California’s workforce
  • Undocumented workers contribute over $23 billion annually in local, state and federal taxes
  • More than a quarter of agricultural workers and 26 percent of construction laborers are undocumented, risking a 14 percent drop in farm output and a 16 percent contraction in building activity
  • Immigrants own nearly 40 percent of small businesses in California, with undocumented entrepreneurs behind 11 percent of those firms