"Immigration restrictions worsen hiring challenges"
"Some employees are now afraid to come to work"
The U.S. restaurant industry is facing a crisis as the labor market comes under pressure due to immigration crackdowns by the administration of President Donald Trump.
The Financial Times (FT) reported on June 8 (local time) that restaurant owners across the United States are preparing for labor shortages as immigration authorities have stepped up enforcement, including inspections of more than 100 establishments in Washington last month.
Tony Foreman, who operates five restaurants near Maryland, said in an interview, "During the recent inspections in Washington, armed agents accompanied the immigration authorities, making the crackdown very public. As a result, some employees are now afraid to come to work." He added that the imminent labor shortage will "put wage pressure" on the service industry, and that some restaurants may struggle to find qualified staff.
According to the National Restaurant Association, more than one in five restaurant workers in the United States is foreign-born. Most of these workers are legally authorized to work in the U.S. However, it is also estimated that restaurants employ as many as one million undocumented immigrants.
People gathered in Los Angeles, California, to protest federal immigration enforcement. Photo for illustrative purposes only and unrelated to the content. Photo by Reuters Yonhap News.
Restaurant owners pointed out that new immigration restrictions have worsened hiring challenges, citing the revocation of legal status for thousands of workers and growing fear among immigrant communities.
Previously, on May 19, the U.S. Supreme Court ruled that the Trump administration could revoke Temporary Protected Status (TPS) for Venezuelan nationals residing in the U.S. As a result, approximately 350,000 Venezuelans are now at risk of losing their right to live and work legally in the country and face possible deportation.
According to an analysis by Michael Clemens, an economics professor at George Mason University, nearly one in five Venezuelans who received TPS since 2021 works in the service and recreation industries.
President Donald Trump also issued a proclamation completely banning entry into the United States for citizens of 12 countries, including Iran, citing national security concerns. Entry for citizens of seven countries, including Venezuela and Cuba, is partially restricted. Credit rating agency Fitch downgraded its outlook for the U.S. restaurant sector from 'neutral' to 'deteriorating' last month.
Jose Luis Rivas, Senior Director at Fitch, predicted that the industry faces "simultaneous inflationary pressures" due to tariff increases and a tightening labor market, but it will be difficult to pass these additional costs on to price-sensitive customers. Teddy Vasquez Solis, who runs the Los Angeles-based restaurant chain Teddy's Red Tacos, said that as a result of the immigration crackdown, "people are now afraid to spend money."
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