Key Takeaways
• Federal immigration raids in Los Angeles began June 6, 2025, targeting warehouses, car washes, and public spaces.
• Small businesses report sales drops up to $7,000 weekly; immigrant workers essential to many key sectors.
• LA County studying economic impact, considering aid after raids cause fear, protests, and curfews through mid-June.
Small Businesses in Los Angeles Face Crisis as Federal Immigration Raids Cause Economic Disruption
Small businesses across Los Angeles are facing a crisis as federal immigration raids enter their second week, causing empty restaurants, missing workers, and sharp drops in sales. The economic disruption is so severe that many business owners and city leaders are comparing it to the early days of the COVID-19 pandemic. The raids, which began on June 6, 2025, have targeted workplaces and public spaces, leading to mass detentions and a climate of fear that affects both undocumented and documented immigrants.
What’s Happening: The Scope and Impact of Federal Immigration Raids
Federal immigration raids in Los Angeles have now stretched into their second week. These actions, led by Immigration and Customs Enforcement (ICE), have focused on workplaces such as warehouses, car washes, and public spaces. While there was a recent directive to pause raids at some businesses—including farms, restaurants, and hotels—the economic damage is already widespread and ongoing.
Key facts:
– Start date: June 6, 2025
– Targeted locations: Workplaces (warehouses, car washes), public spaces, and previously restaurants and hotels
– Duration: Entering second week as of June 18, 2025
The raids have led to mass detentions and have created a sense of fear throughout the city. Many immigrants, regardless of their legal status, are afraid to leave their homes, go to work, or visit local businesses. This fear has caused a sharp decline in consumer activity and has left many businesses struggling to stay open.
Economic Disruption: Empty Restaurants, Missing Workers, and Plummeting Sales
The economic disruption caused by the federal immigration raids is being felt across Los Angeles. Restaurants in heavily Latino neighborhoods have reported sales drops of 20% or more. For example, a Denny’s in Hawthorne saw its daily sales fall from 500 to 300. One longtime Mexican restaurant owner reported losing $7,000 per week compared to just two weeks earlier.
Other sectors hit hard include:
– Fashion District: Employs about 15,000 workers. Foot traffic and business activity have dropped sharply.
– Tourism: Hotels across the city are seeing significant cancellations due to safety concerns.
– Cleaning and Landscaping: Many businesses in these sectors rely on immigrant workers, and now face severe staff shortages.
Mayor Karen Bass described the situation as “a body blow to our economy,” highlighting how essential immigrants are to key sectors. She urged residents to support local businesses during this difficult time.
Who Is Most Affected? The Role of Immigrant Workers in Los Angeles
Immigrants play a vital role in Los Angeles’ economy. According to data from the LA County Board of Supervisors:
– One-third of restaurant and warehouse workers are foreign-born
– 40% of home healthcare and childcare workers are immigrants
– 60% of landscaping and building cleaning services rely on immigrant labor
When federal immigration raids target these workers, entire sectors struggle to operate. Many businesses have had to close temporarily because they cannot find enough staff or because customers are staying away.
Dean Baker from the Center for Economic and Policy Research warned that these raids will lead to higher costs and project delays as contractors struggle to find workers. Andrew Selee of the Migration Policy Institute added that broad enforcement “disrupts the American economy in very real ways.”
Social and Community Impact: Fear, Anxiety, and Cancelled Events
The effects of the raids go beyond economics. Immigrant families across Los Angeles are reporting higher levels of anxiety and fear. Many are canceling events, such as concerts, graduation parties, and even medical appointments, because they are afraid of encountering ICE officers.
Some of the social impacts include:
– Mental health strain: Families are experiencing stress and anxiety, especially children who worry about their parents being detained.
– Reluctance to seek help: Many immigrants are avoiding hospitals, clinics, and social services out of fear, even when they need medical care.
– Community events canceled: Non-political gatherings are being called off, further isolating families and reducing community support.
Protests, Curfew, and Public Response
The raids have sparked protests and unrest in downtown Los Angeles. In response to violent protests and vandalism, city officials imposed a curfew from 8 p.m. to 6 a.m. for about a week. At least 25 downtown businesses were vandalized or looted during this period. Although the curfew was lifted on June 17, business activity remains severely depressed, especially at night.
President Trump deployed the National Guard and U.S. Marines to Los Angeles to address the unrest, despite opposition from Governor Gavin Newsom and local officials. The presence of federal troops has added to the tension and uncertainty in the city.
Local Government Response: Studying and Addressing the Economic Fallout
Recognizing the scale of the crisis, Los Angeles County is moving quickly to study the economic impact of the federal immigration raids. On June 17, Supervisor Hilda Solis introduced a motion directing the county’s Director of Economic Opportunity to report within 15 days on workforce losses, affected industries, and the broader economic fallout. The county will continue to provide monthly updates through December.
Supervisor Solis stated, “The collateral damage from these raids is already evident in our local economy in ways that we need to measure and address.” The LA County Board of Supervisors is also considering direct assistance for affected small businesses and additional support for workers who have lost their jobs.
For businesses seeking assistance:
– Monitor updates from the LA County Board of Supervisors about relief programs and economic impact studies.
– Contact the LA County Department of Economic Opportunity for resources and support. The official website is opportunity.lacounty.gov.
– Report vandalism or curfew-related losses to city authorities for possible cleanup assistance.
Policy Changes and Federal Response
In response to growing economic concerns, the Trump administration has instructed ICE to temporarily halt raids on certain businesses, including farms, restaurants, and hotels. However, enforcement continues at other sites such as warehouses and car washes. Federal officials argue that these actions are necessary for law enforcement and border security, but they have begun to acknowledge the economic consequences.
President Trump defended the raids as necessary, claiming that Democratic leaders use undocumented immigrants to “expand their Voter Base, cheat in Elections, and grow the Welfare State.” White House spokeswoman Abigail Jackson blamed “Democrat riots” for business losses, not federal enforcement.
The Broader Context: Los Angeles as an Immigrant Hub
Los Angeles has a long history as a center for immigrant labor and entrepreneurship. Immigrants make up a third of California’s workforce and 40% of its entrepreneurs. In the past, ICE operations in Los Angeles typically targeted individuals with criminal convictions. The current wave is broader, focusing on workplaces and public spaces, and detaining individuals with no criminal record.
The economic and social impact of these raids is being compared to the early COVID-19 lockdowns, which devastated small businesses and left many workers without income. Business owners say the current downturn is as bad, if not worse, than what they experienced during the pandemic.
Stakeholder Perspectives: Business Owners, Immigrant Advocates, and Policy Experts
Business owners are struggling to keep their doors open. Many compare the current situation to the worst days of the pandemic, citing unprecedented drops in sales and foot traffic. Some car washes and restaurants have temporarily closed because they cannot find enough staff or customers.
Immigrant advocates argue that the raids are indiscriminate and disproportionately harm law-abiding, long-term residents who are deeply integrated into the local economy and community. They point out that many of those detained have no criminal record and have lived in Los Angeles for years.
Economists and policy experts warn that the raids threaten to undermine Los Angeles’ economic recovery after the pandemic, especially in sectors that rely heavily on immigrant labor.
What’s Next? Future Outlook and Anticipated Developments
The LA County economic impact study will provide initial findings by July 2, 2025, with monthly updates through December. Local officials are considering direct aid to small businesses and additional support for affected workers. However, the long-term effects on the labor market, business viability, and community trust remain uncertain.
If the raids continue at this scale, experts warn of lasting damage to the city’s economy and social fabric. There is also the potential for further protests and unrest if enforcement actions persist or expand.
Practical Guidance for Those Affected
For businesses:
– Stay informed about relief programs and economic impact studies from the LA County Board of Supervisors.
– Reach out to the LA County Department of Economic Opportunity for support and resources.
– Report any losses from vandalism or curfew-related incidents to city authorities.
For individuals:
– Legal aid organizations and immigrant rights groups are offering hotlines and legal clinics. The Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA) is a key resource. Visit chirla.org for more information.
– Stay updated on curfew and enforcement news through the City of Los Angeles official website at lacity.gov.
– If you or your family are affected by the raids, seek support from local community organizations and mental health services.
Official Resources
- LA County Department of Economic Opportunity: opportunity.lacounty.gov
- City of Los Angeles: lacity.gov
- Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA): chirla.org
- Mayor’s Office: mayor.lacity.gov
For more information about your rights during ICE encounters, you can visit the official U.S. Citizenship and Immigration Services (USCIS) website.
Analysis and Takeaways
The ongoing federal immigration raids in Los Angeles have triggered a severe economic and social crisis. Small businesses are reporting catastrophic drops in sales, widespread worker absences, and a climate of fear that is reminiscent of the COVID-19 pandemic’s early days. Local officials are mobilizing to assess and mitigate the damage, but the future remains uncertain as the city grapples with the fallout from both federal enforcement and the resulting protests and unrest.
As reported by VisaVerge.com, the situation in Los Angeles highlights the deep connections between immigration policy and the local economy. When large numbers of workers are detained or afraid to go to work, entire sectors can grind to a halt. The ripple effects are felt not just by immigrants, but by all residents and businesses in the city.
Key takeaways:
– Federal immigration raids have caused widespread economic disruption in Los Angeles, with empty restaurants, missing workers, and plummeting sales.
– Small businesses are especially hard hit, with some reporting losses as high as $7,000 per week.
– Immigrant workers are essential to many sectors, including restaurants, cleaning, and healthcare.
– Local government is studying the economic impact and considering direct aid for affected businesses and workers.
– Community fear and anxiety are high, with many people avoiding public spaces and canceling events.
– The future remains uncertain, but experts warn of lasting damage if enforcement continues at this scale.
If you are a business owner or worker affected by the raids, it is important to stay informed and seek support from local resources. The coming weeks will be critical as Los Angeles officials work to measure the damage and provide relief to those most affected by this crisis.
Learn Today
Federal immigration raids → Enforcement operations by ICE targeting workplaces and public areas to detain undocumented immigrants.
Immigration and Customs Enforcement (ICE) → U.S. federal agency enforcing immigration laws and conducting raids on suspected undocumented workers.
Economic disruption → Significant negative impact on economic activity, such as sales drops and workforce shortages.
Curfew → A legally imposed restriction limiting public presence during specific nighttime hours to maintain order.
Migrant labor → Workers who move to different regions or countries, often immigrants, to find employment.
This Article in a Nutshell
Federal immigration raids in Los Angeles since June 6, 2025, have devastated small businesses. Missing workers and fear sharply reduce sales. Key economic sectors like restaurants and cleaning suffer. City leaders compare impact to COVID-19 lockdowns. Local government studies damage and plans targeted aid to support affected businesses and workers.
— By VisaVerge.com
