Federal survey in Dallas reveals some enterprises facing effects due to Trump Administration's immigration policy
Texas businesses are grappling with hiring challenges, as revealed by a survey conducted by the Dallas Federal Reserve. Forty-three percent of businesses hiring this July cited a lack of available applicants as the biggest hurdle to hiring new workers.
This labor shortage can be traced back to the Trump administration's aggressive immigration policies, which significantly reduced the availability of undocumented immigrant labor in Texas. Historically, businesses have been pro-immigration due to access to cheaper labor, according to Chad Pearson, a labor historian at the University of North Texas. However, the Trump administration's increased ICE enforcement and deportations have created hiring and retention challenges for Texas businesses, particularly in sectors like agriculture, hospitality, and food processing that depend heavily on immigrant workers.
To address these labor shortages, many Texas businesses have increased adoption of automation and artificial intelligence technologies. Automation systems are being deployed to handle repetitive and lower-skill tasks, such as processing and packaging in food industries, thereby reducing dependence on immigrant labor. AI-driven workforce management tools are also being utilized to optimize the remaining workforce’s productivity and scheduling. This shift towards automation and AI has helped mitigate some impacts of labor shortages but has also accelerated structural changes in employment patterns in Texas industries.
The Trump Administration's January Executive Order stated that many immigrants unlawfully within the United States present significant threats to national security and public safety. As a result, not hiring foreign-born workers could potentially violate the Civil Rights Act of 1964, according to Michael Maslanka, an associate professor at UNT Dallas' College of Law.
In response to the labor shortage, some businesses have increased wages or benefits (38%), while others plan to hire more U.S. born workers or legal permanent residents. Forty-eight percent of the affected businesses have increased hours for existing employees. However, the Dallas Federal Reserve survey did not mention any companies that have already been impacted by immigration policy increasing their wages or benefits.
Approximately 13% of businesses reported that their ability to hire immigrant workers has been impacted by recent immigration policy. The top two reasons cited by these businesses were difficulty finding workers who have work permits and a reduction in the number of foreign-born applicants. Of the businesses expecting an impact, 42% plan to use automation and AI to help fill the gap.
Texas has an unemployment rate of 4%, indicating a relatively healthy labor market. However, the Trump Administration's immigration policies have disrupted hiring practices for businesses that traditionally rely on immigrant workers, leading to the increased adoption of automation and AI technologies.
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- The Trump administration's increased ICE enforcement and deportations have created hiring and retention challenges for Texas businesses, particularly in sectors like agriculture, hospitality, and food processing that depend heavily on immigrant workers.
- To address these labor shortages, many Texas businesses have increased adoption of automation and artificial intelligence technologies, with AI-driven workforce management tools being utilized to optimize the remaining workforce’s productivity and scheduling.
- Not hiring foreign-born workers could potentially violate the Civil Rights Act of 1964, according to Michael Maslanka, an associate professor at UNT Dallas' College of Law.
- Approximately 13% of businesses reported that their ability to hire immigrant workers has been impacted by recent immigration policy, with the top two reasons cited being difficulty finding workers who have work permits and a reduction in the number of foreign-born applicants.
- Texas businesses are grappling with hiring challenges, as revealed by a survey conducted by the Dallas Federal Reserve, with 43% of businesses hiring this July citing a lack of available applicants as the biggest hurdle to hiring new workers. This labor shortage can be traced back to the Trump administration's aggressive immigration policies.
