Mass Deportation Economic Impact
Employment, Enviroment, Health

The Economic Devastation of Mass Deportation: How Removing Undocumented Workers Would Impact North Carolina and the U.S.

Abstract

A mass deportation of undocumented workers would have severe economic consequences for North Carolina and the entire United States. Key sectors such as agriculture, construction, and hospitality would face significant labor shortages, leading to higher costs, reduced productivity, and a ripple effect on the economy. Rural areas, in particular, would bear the brunt of this policy, as many rely heavily on undocumented workers to sustain their industries. This blog explores the sectors most affected, the broader economic impacts, and how average Americans—especially in rural North Carolina—would feel the consequences of such a policy.


Introduction

Immigration is a contentious topic in American politics, and mass deportation of undocumented workers is often proposed as a solution to immigration challenges. However, these proposals fail to account for the critical role undocumented workers play in the U.S. economy. From the fields of rural North Carolina to urban construction sites, undocumented workers are a backbone of many industries. A policy of mass deportation would not only harm these workers but also devastate industries, raise costs for consumers, and cripple local economies, particularly in rural areas.


The Role of Undocumented Workers in the Economy

Key Statistics

  • Undocumented workers make up about 5% of the U.S. labor force, totaling an estimated 7.6 million workers.
  • In North Carolina, agriculture, construction, and hospitality are among the largest employers of undocumented workers.

These workers often take jobs that are physically demanding, low-paying, and essential—jobs that many Americans are unwilling or unable to perform. Their contributions are vital to keeping prices low and industries productive.


Industries That Would Be Hardest Hit

1. Agriculture

Agriculture is the backbone of North Carolina’s economy, contributing over $92 billion annually. A significant portion of agricultural labor comes from undocumented workers, who make up an estimated 50% to 70% of the farm labor force nationwide. These workers harvest crops, care for livestock, and ensure that food makes its way to grocery stores and dining tables.

Impact of Deportation:

  • Labor shortages: Without undocumented workers, farms would struggle to find replacements for the physically demanding jobs that are often seasonal and low-paying.
  • Rising costs: Farmers would have to increase wages to attract domestic workers, which would lead to higher food prices for consumers.
  • Crop losses: Without enough workers, farms may leave crops unharvested, leading to waste and reduced food supply.

Rural Focus: North Carolina’s rural communities depend on agriculture as a primary economic driver. A mass deportation would lead to significant job losses in related industries, such as equipment manufacturing and food processing, further harming rural economies.


2. Construction

The construction industry heavily relies on undocumented workers, who make up about 13% of the construction workforce nationwide. These workers are essential for residential and commercial construction projects, helping to build homes, schools, and infrastructure.

Impact of Deportation:

  • Project delays: Labor shortages would slow down construction projects, increasing costs and timelines.
  • Higher housing prices: Reduced labor supply would make construction more expensive, exacerbating the housing crisis in many parts of the country, including North Carolina.

Rural Focus: Rural areas already face challenges with affordable housing. A reduction in construction workers would worsen this issue, leaving many rural families without access to quality, affordable homes.


3. Hospitality

Undocumented workers are also critical to the hospitality industry, which includes hotels, restaurants, and tourism-related businesses. This industry is a major employer in urban and rural areas of North Carolina, particularly in tourist destinations like Asheville and the Outer Banks.

Impact of Deportation:

  • Service disruptions: Labor shortages in restaurants, hotels, and resorts would lead to reduced services and longer wait times for customers.
  • Higher prices: Businesses would pass increased labor costs onto consumers, making dining out and travel more expensive.

Rural Focus: Rural communities that rely on tourism as a key economic driver would see reduced visitor numbers and a decline in local revenue.


The Broader Economic Impacts

1. Increased Costs for Consumers

As labor shortages drive up wages in key industries, the cost of goods and services would rise. Food prices, housing costs, and travel expenses are just a few examples of how average Americans would feel the effects of mass deportation. These increases would disproportionately affect low-income families, who already struggle to make ends meet.

2. Loss of Tax Revenue

Undocumented workers contribute billions in taxes annually, including $27 billion in federal, state, and local taxes. Deporting these workers would result in a significant loss of revenue, further straining public budgets and reducing funding for schools, healthcare, and infrastructure.

3. Ripple Effects on Local Economies

The loss of undocumented workers would not only hurt the industries they work in but also have a ripple effect on local economies. Businesses that rely on the spending of undocumented workers, such as grocery stores and gas stations, would see reduced revenue, leading to layoffs and closures.


The Unique Challenges for Rural North Carolina

Rural communities in North Carolina are particularly vulnerable to the impacts of mass deportation. These areas already face declining populations, limited job opportunities, and underfunded public services. Undocumented workers help sustain rural economies by filling critical labor gaps and contributing to local businesses.

Example: In counties like Duplin and Sampson, which are home to large agricultural operations, undocumented workers play a vital role in keeping farms productive. Without them, these communities would face economic decline, leading to outmigration and further erosion of the rural economy.


Why Mass Deportation Is Not the Answer

While addressing undocumented immigration is important, mass deportation is a short-sighted and harmful solution. Instead of strengthening the economy, it would weaken key industries, increase costs for consumers, and destabilize rural communities. A more effective approach would focus on comprehensive immigration reform that includes pathways to legal status for undocumented workers, ensuring they can continue contributing to the economy while protecting their rights.


Progressive Solutions for Rural Communities and the Economy

1. Comprehensive Immigration Reform

A pathway to legal status would allow undocumented workers to come out of the shadows, increasing their economic contributions and ensuring they are protected under labor laws.

2. Investment in Rural Economies

Progressive policies that invest in rural infrastructure, education, and healthcare would help stabilize rural communities and create opportunities for all residents, regardless of immigration status.

3. Support for Small Businesses

Providing resources and incentives for small businesses in rural areas would help offset labor shortages and encourage economic growth.


Conclusion

Mass deportation of undocumented workers would have devastating consequences for North Carolina’s economy and the nation as a whole. From agriculture and construction to hospitality, key industries would face labor shortages, higher costs, and reduced productivity. Rural areas, already struggling with economic challenges, would be hit hardest, losing critical labor and economic stability. Instead of pursuing harmful policies, the focus should be on comprehensive immigration reform and investments that uplift rural communities and strengthen the American economy.


Call to Action

It’s time to reject harmful immigration policies that hurt our economy and communities. Advocate for comprehensive immigration reform and support candidates who prioritize solutions that work for everyone, including rural Americans.


Resources for More Depth

  1. American Immigration Council – “The Economic Contributions of Undocumented Workers”
    Learn about the critical role undocumented workers play in the U.S. economy.
    Link: https://www.americanimmigrationcouncil.org/
  2. Brookings – “The Impact of Immigration on Rural America”
    This article explores how immigration supports rural economies and what mass deportation would mean for these areas.
    Link: https://www.brookings.edu/
  3. Economic Policy Institute – “The Role of Immigrants in the U.S. Labor Market”
    A detailed analysis of how immigrants contribute to key industries and the broader economy.
    Link: https://www.epi.org/

Donation Link

Help Red District Democrats by Donating Here

By Kyle Parrish

Kyle Parrish is a former congressional candidate who, in 2022, ran as a Democrat in a deeply red district in Western North Carolina. From that experience, he personally observed the deep rooted, serious challenges that rural communities face, many of them directly connected to their representatives, at all levels, completely ignoring their needs. He is now fighting to help down-ballot Democratic candidates raise awareness in red districts that there are options for them to live happier, easier lives.

Leave A Comment

Your Comment
All comments are held for moderation.