A recent survey conducted by the Dallas Federal Reserve reveals that many businesses in Texas are struggling with the ramifications of the Trump Administration’s strict immigration policies.
Approximately 13% of businesses reported that their ability to hire immigrant workers has been negatively affected.
Among those firms, the leading challenges cited were difficulties in finding workers with valid work permits and a noticeable decrease in foreign-born applicants.
In response to these issues, 48% of the affected businesses increased hours for their existing employees, while 38% opted to raise wages or benefits to attract talent.
In a broader context, when asked earlier this year about the potential effects of immigration policy on hiring and retention, 18% of businesses expressed concern.
By July, 43% of businesses facing hiring challenges pointed to a lack of available applicants as their primary hurdle, particularly significant in light of Texas’s 4% unemployment rate, which limits the applicant pool further without immigrant labor.
Chad Pearson, an assistant professor and labor historian at the University of North Texas, noted that historically, businesses have typically supported immigration for the access it provides to a more affordable labor force.
When there are many applicants for a job, companies tend to have more bargaining power, allowing them to offer lower wages as candidates compete for positions.
The Federal Reserve survey also included a comment section where business executives could share their thoughts.
Several comments indicated that businesses are actively not hiring foreign-born workers, a stance Michael Maslanka, an associate professor at UNT Dallas’ College of Law, highlighted as illegal.
Maslanka stated that such discrimination violates the Civil Rights Act of 1964, which prohibits employment bias based on national origin.
Additionally, some business owners noted a downturn in productivity and customer engagement amid rumors of raids by Immigration and Customs Enforcement (ICE) agents.
As these raids have become increasingly visible and frequent, ICE is working towards a goal of deporting millions of individuals by the end of President Donald Trump’s term.
Under Trump’s “One Big Beautiful Bill,” ICE received an additional $75 billion in funding, making it the best-financed law enforcement agency in the federal government, according to CBS reports.
President Trump has characterized undocumented immigrants as violent criminals invading the nation, perpetuating a narrative of danger.
In a January Executive Order, he described many of these individuals as significant threats to national security, engaging in heinous acts.
However, a study financed by the Department of Justice’s research agency found that immigrants are arrested for violent and drug-related crimes at less than half the rate of native-born citizens.
The findings, which analyzed Texas criminal records from 2012 to 2018, appeared to be removed from the agency’s website amid a purge initiated by the Trump administration in January 2025.
The Dallas Fed survey also indicated that 7% of businesses anticipate future impacts from immigration policies on their hiring capacity.
Of these businesses, 42% are planning to implement automation and artificial intelligence solutions to close the gaps and intend to recruit more U.S.-born workers or legal permanent residents.
Dylan Duke is KERA’s summer 2025 SPJ news intern.
For tips, Dylan Duke can be reached at [email protected].
image source from：keranews
