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Federal Immigration Crackdown Affects Texas Job Growth

Diverse Texas workforce in a business environment affected by immigration policies

Dallas, October 23, 2025

News Summary

Recent surveys from the Federal Reserve Bank of Dallas reveal that the federal immigration crackdown is stunting job growth in Texas. One in five Texas businesses expect negative impacts from immigration policy changes, particularly in hiring foreign-born workers. Many establishments are adjusting staff schedules, pay, and hiring strategies to manage operational challenges resulting from immigrant employee absenteeism. Community leaders express rising fear among migrants, which impacts local services and retail activities. Law enforcement in Dallas maintains its stance on immigration enforcement, indicating minimal changes despite widespread public concern.

Dallas

Federal immigration crackdown tied to weak job growth in Texas, surveys show

The federal immigration crackdown has contributed to weak job growth in Texas, according to recent Texas Business Outlook Surveys from the Federal Reserve Bank of Dallas. The surveys further indicate that federal immigration policy changes will negatively impact 1 in 5 Texas businesses this year, particularly in hiring and retaining foreign-born workers. Those two findings sit at the center of business and community concerns across the state.

Survey responses show immediate operational impacts for employers. Approximately 40% of businesses reported that migrant employees missed work due to fear of immigration enforcement, and many employers expressed concern over losing trained workforce due to immigration policies, with many foreign-born workers either staying home, leaving the state, or returning to their home countries. The majority of Texas businesses surveyed reported challenges related to hiring and retaining foreign-born workers due to increased immigration enforcement.

Operational impacts and business responses

Local businesses are changing schedules, pay and hiring strategies. Local businesses are adapting to immigration-related challenges by increasing work hours, raising wages, and focusing on hiring U.S.-born workers or legal residents. Employers reported fewer foreign-born applicants and growing difficulty in finding qualified workers. Several businesses noted trained employees were no longer available, creating gaps in service and production that are not easily filled by the existing U.S.-born workforce.

Employers expressed concern over losing trained workforce due to immigration policies, with many foreign-born workers either staying home, leaving the state, or returning to their home countries, which compounds shortages in occupations that historically relied on immigrant labor.

Community and social effects

Beyond workplace attendance, the surveys and community reports indicate widespread fear among migrants. Madeline Zavodny, a professor of economics at the University of North Florida, noted significant fear in the migrant community, especially among those without legal status. Migrants are reportedly afraid to go shopping, take their children to school, attend church, and go to work due to fear of immigration enforcement. These behaviors have rippling effects on schools, places of worship, retail activity and local services.

Faith leaders in North Texas held a weekly vigil at the Dallas Immigration and Customs Enforcement Field Office in September, advocating for due process in immigration hearings. Community oversight bodies have raised concerns about local law enforcement collaboration with federal immigration enforcement practices.

Law enforcement response

Dallas Police Chief Daniel Comeaux affirmed that the department’s approach to immigration enforcement has not changed despite criticism over his comments on national television. Chief Comeaux clarified that his comments were not aimed at immigrants, stressing that the department would not search for immigrants but would assist federal agencies when necessary. The Community Police Oversight Board flagged ongoing concerns about the police department’s collaboration with federal immigration enforcement practices, and that oversight process continues to be a point of public discussion.

Wider economic context and projections

Economists and survey respondents point to demographic constraints that limit how much the U.S.-born workforce can compensate for reduced immigration. Zavodny suggests Texas’s slower job growth is linked to fewer immigrants, which impacts overall economic growth despite stable unemployment rates. Technical solutions such as automation and other technological advancements could mitigate some labor supply issues, but they are not a complete substitute for the types of workers now less available in certain industries.

Projections show that by 2031, all U.S. population growth will be reliant on immigration, a nationwide projection that indicates the broader demographic context in which these state-level labor trends are unfolding. Analysts warn that the combined effect of lower immigration and demographic trends like an aging population and low birth rates will constrain future population and workforce growth without policy changes.

Weather note

The weather forecast for this morning is partly cloudy, becoming cloudy in the afternoon with expected highs around 80F; wind gusts from the SSE at 10 to 15 mph. Occasional rain showers are predicted after midnight with a low of 64F; chance of rain is 50%. These conditions are included for local planning during ongoing community events and business operations.

What the surveys measured

The Texas Business Outlook Surveys collected responses from a cross-section of Texas firms and asked about hiring, retention, absenteeism, applicant pools and the perceived effects of federal immigration enforcement. Survey results point to a mix of direct absenteeism and longer-term labor supply shifts, with many firms reporting fewer foreign-born applicants and increased costs to recruit and retain staff.

Implications

  • Short-term: Missed work and reduced labor availability have immediate operational and financial costs for impacted businesses.
  • Medium-term: Employers report shifting hiring strategies and raising wages, which can increase operating costs.
  • Long-term: Given demographic trends and projections that nationwide population growth will rely on immigration by 2031, reduced immigration flows could dampen broader economic growth without offsetting policy or technological responses.

FAQ

Q: How has the federal immigration crackdown affected Texas job growth?

A: The federal immigration crackdown has contributed to weak job growth in Texas, according to recent Texas Business Outlook Surveys from the Federal Reserve Bank of Dallas.

Q: How many businesses will be affected by federal immigration policy changes?

A: The surveys indicate that federal immigration policy changes will negatively impact 1 in 5 Texas businesses this year, particularly in hiring and retaining foreign-born workers.

Q: Are migrant employees missing work due to fear of enforcement?

A: Approximately 40% of businesses reported that migrant employees missed work due to fear of immigration enforcement.

Q: How are local businesses responding?

A: Local businesses are adapting to immigration-related challenges by increasing work hours, raising wages, and focusing on hiring U.S.-born workers or legal residents.

Q: What did community leaders do in September?

A: Faith leaders in North Texas held a weekly vigil at the Dallas Immigration and Customs Enforcement Field Office in September, advocating for due process in immigration hearings.

Q: What did Dallas law enforcement say about immigration enforcement?

A: Dallas Police Chief Daniel Comeaux affirmed that the department’s approach to immigration enforcement has not changed despite criticism over his comments on national television.

Q: What are the long-term population projections?

A: Projections show that by 2031, all U.S. population growth will be reliant on immigration.


Key facts at a glance
Feature Value
Impact on Texas businesses 1 in 5 Texas businesses negatively impacted
Employee absenteeism Approximately 40% of businesses reported that migrant employees missed work due to fear of immigration enforcement
Business adaptations Increasing work hours, raising wages, hiring U.S.-born workers or legal residents
Local community action Faith leaders in North Texas held a weekly vigil at the Dallas Immigration and Customs Enforcement Field Office in September, advocating for due process in immigration hearings
Law enforcement stance Dallas Police Chief Daniel Comeaux affirmed that the department’s approach to immigration enforcement has not changed despite criticism over his comments on national television
National projection Projections show that by 2031, all U.S. population growth will be reliant on immigration
Weather The weather forecast for this morning is partly cloudy, becoming cloudy in the afternoon with expected highs around 80F; wind gusts from the SSE at 10 to 15 mph. Occasional rain showers are predicted after midnight with a low of 64F; chance of rain is 50%

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Additional Resources

STAFF HERE DALLAS WRITER
Author: STAFF HERE DALLAS WRITER

The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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