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Donald Trump's deportation policies will be a disaster for the Iowa economy:
BUSINESS
What would Trump's mass deportationsmean for Iowa's economy? Nothing good,experts say
Donnelle Eller and
Kevin Baskins
Des Moines Register
Published 6:07 a.m. CT Jan. 15, 2025 Updated 9:40 a.m. CT Jan. 16, 2025
President-elect Donald Trump’s announced plan for a massive roundup and deportation ofimmigrants could hit Iowa hard, damaging rural towns' economies, leaving livestockproduction hamstrung and slowing meat processing and other manufacturing, sayeconomists, worker and business advocates and labor analysts.
Perpetually short of labor, Iowa is the leading U.S. producer of pork and eggs and a topsource of beef, turkey and milk. At
large meatpacking plants scattered across the state and inlivestock operations, immigrants are a major source of labor.
Any loss of workforce could be felt nationwide, leaving U.S. consumers facing pandemic-likeprice hikes at grocery stores, the experts say.
"Ag will be significantly impacted, because we rely on immigrant labor," said Chad Hart, anIowa State University agricultural economist. “We learned during COVID-19 that evenslowing production down can have dramatic impacts that are felt by consumers across thenation.”
But it's not just agriculture that faces worker losses if Trump carries out his policy. With anestimated 35,000 undocumented workers in the state, mass deportations would ripple acrossIowa construction, health care, hotel, restaurants and other industries, experts say.
"Undocumented workers are not unemployed," said Joe Enriquez Henry, president of the Latinos United of Iowa chapter in Des Moines. Many "are working in sectors that aredominated by big business interests."
The Trump's administration also may target legal immigration with programs Kaiser FamilyFoundation research shows could include ending the Deferred Action for Childhood Arrival
program, cutting aid to immigrants, ending birthright citizenship and limiting refugees.
Even though Iowa has one of the highest labor participation rates in the nation, it’s declining,and business leaders and advocates complain the state lacks both skilled and unskilledworkers, with nearly 50,000 open jobs.
Foreign labor helps fill the gaps, picking up jobs that many U.S. workers don't want, experts said. Iowa's
population would have shrunk over the past decade if not for the growth of Hispanicand other populations that aren't part of the non-Hispanic white majority, according to David Peters, an ISU professor of agricultural and rural policy who has analyzed populationchanges between the 2010 and 2020 U.S. Censuses.
The impact is clear in communities that are home to meatpacking plants, where immigrantshave boosted the population, Peters' research shows. West Liberty is among them, with aneconomy that's thriving, said Mayor Mark Smith.
The east-central Iowa town of 3,900 is home to West Liberty Foods, a producer-ownedturkey processor. The town is one of six Iowa cities where the majority of the population ispeople who primarily identify as Hispanic. Many of the state's estimated 50,000undocumented residents are building new lives after leaving "troubled parts of the world,"said Smith, who tries to help them gain citizenship.
Most Iowa business and political leaders, however, “completely deny the fact that at least aportion” of their profits and economies “rely on undocumented labor," says Erica Johnson,executive director of the Iowa Migrant Movement for Justice. And possible raids on places ofbusiness put state and local communities' economies at risk, she said.
"Iowa communities are facing real threats to their economic livelihood," said Johnson, whoseDes Moines group is helping workers, families, cities and towns to prepare for the possibilityof mass deportations.
Leaders of groups like the Iowa Association of Business and Industry and the Iowa BusinessCouncil said they support deporting immigrants with criminal histories, which Trump hassaid are his chief target.
At the same time, though, they recognize the need for additional workers and have pushedfor a more streamlined process to bring immigrants legally to the U.S. to work.
“I don't how many meetings we've had with people from Washington and every place elseabout immigration reform and wanting to do everything we can in this country to help speedup legal immigrants to help them become citizens,” said Mike Ralston, the outgoing ABIpresident.
Without immigration, Iowa’s population growth and workforce expansion would stagnate,“reducing the state’s ability to attract businesses, grow its economy, and sustain essentialservices,” University of Iowa economist Amil Kumar said.
“A reduced workforce would strain existing workers and challenge the state’s economicresilience,” Kumar said.
ISU Economist Peter Orazem sees the decline in Iowa's workforce participation rateaccelerating in the coming years as more aging workers retire.
"I do not see Iowa suddenly becoming more attractive to people in other states, and we havebeen a net exporter of educated labor for years,” he said. “In addition, Iowa’s economy hasbeen flat for almost two years and so we are not in a position to raise wages sufficiently toattract people from faster-growing states.
“The lack of labor force growth has been holding back the Iowa economy since the pandemicrecovery began," Orazem said. “Few states are more dependent on increasing immigration togrow or even maintain their workforces than Iowa."
Joe Murphy, the Iowa Business Council’s president, said increased immigration could bring“economic innovation and economic opportunity to our state that's going to create moreopportunities and expand Iowa's business competitiveness.”
Ralston said he hears many stories about the trouble Iowa companies encounter findingworkers. He recalled one ABI member so desperate for workers that he told him “we'll takeanybody if they're here legally and want to come. We will help them learn English on theclock so they are getting paid while they do.”
BUSINESS
What would Trump's mass deportationsmean for Iowa's economy? Nothing good,experts say
Donnelle Eller and
Kevin Baskins
Des Moines Register
Published 6:07 a.m. CT Jan. 15, 2025 Updated 9:40 a.m. CT Jan. 16, 2025
President-elect Donald Trump’s announced plan for a massive roundup and deportation ofimmigrants could hit Iowa hard, damaging rural towns' economies, leaving livestockproduction hamstrung and slowing meat processing and other manufacturing, sayeconomists, worker and business advocates and labor analysts.
Perpetually short of labor, Iowa is the leading U.S. producer of pork and eggs and a topsource of beef, turkey and milk. At
large meatpacking plants scattered across the state and inlivestock operations, immigrants are a major source of labor.
Any loss of workforce could be felt nationwide, leaving U.S. consumers facing pandemic-likeprice hikes at grocery stores, the experts say.
"Ag will be significantly impacted, because we rely on immigrant labor," said Chad Hart, anIowa State University agricultural economist. “We learned during COVID-19 that evenslowing production down can have dramatic impacts that are felt by consumers across thenation.”
But it's not just agriculture that faces worker losses if Trump carries out his policy. With anestimated 35,000 undocumented workers in the state, mass deportations would ripple acrossIowa construction, health care, hotel, restaurants and other industries, experts say.
"Undocumented workers are not unemployed," said Joe Enriquez Henry, president of the Latinos United of Iowa chapter in Des Moines. Many "are working in sectors that aredominated by big business interests."
The Trump's administration also may target legal immigration with programs Kaiser FamilyFoundation research shows could include ending the Deferred Action for Childhood Arrival
program, cutting aid to immigrants, ending birthright citizenship and limiting refugees.
Even though Iowa has one of the highest labor participation rates in the nation, it’s declining,and business leaders and advocates complain the state lacks both skilled and unskilledworkers, with nearly 50,000 open jobs.
Foreign labor helps fill the gaps, picking up jobs that many U.S. workers don't want, experts said. Iowa's
population would have shrunk over the past decade if not for the growth of Hispanicand other populations that aren't part of the non-Hispanic white majority, according to David Peters, an ISU professor of agricultural and rural policy who has analyzed populationchanges between the 2010 and 2020 U.S. Censuses.
The impact is clear in communities that are home to meatpacking plants, where immigrantshave boosted the population, Peters' research shows. West Liberty is among them, with aneconomy that's thriving, said Mayor Mark Smith.
The east-central Iowa town of 3,900 is home to West Liberty Foods, a producer-ownedturkey processor. The town is one of six Iowa cities where the majority of the population ispeople who primarily identify as Hispanic. Many of the state's estimated 50,000undocumented residents are building new lives after leaving "troubled parts of the world,"said Smith, who tries to help them gain citizenship.
Most Iowa business and political leaders, however, “completely deny the fact that at least aportion” of their profits and economies “rely on undocumented labor," says Erica Johnson,executive director of the Iowa Migrant Movement for Justice. And possible raids on places ofbusiness put state and local communities' economies at risk, she said.
"Iowa communities are facing real threats to their economic livelihood," said Johnson, whoseDes Moines group is helping workers, families, cities and towns to prepare for the possibilityof mass deportations.
Leaders of groups like the Iowa Association of Business and Industry and the Iowa BusinessCouncil said they support deporting immigrants with criminal histories, which Trump hassaid are his chief target.
At the same time, though, they recognize the need for additional workers and have pushedfor a more streamlined process to bring immigrants legally to the U.S. to work.
“I don't how many meetings we've had with people from Washington and every place elseabout immigration reform and wanting to do everything we can in this country to help speedup legal immigrants to help them become citizens,” said Mike Ralston, the outgoing ABIpresident.
Without immigration, Iowa’s population growth and workforce expansion would stagnate,“reducing the state’s ability to attract businesses, grow its economy, and sustain essentialservices,” University of Iowa economist Amil Kumar said.
“A reduced workforce would strain existing workers and challenge the state’s economicresilience,” Kumar said.
ISU Economist Peter Orazem sees the decline in Iowa's workforce participation rateaccelerating in the coming years as more aging workers retire.
"I do not see Iowa suddenly becoming more attractive to people in other states, and we havebeen a net exporter of educated labor for years,” he said. “In addition, Iowa’s economy hasbeen flat for almost two years and so we are not in a position to raise wages sufficiently toattract people from faster-growing states.
“The lack of labor force growth has been holding back the Iowa economy since the pandemicrecovery began," Orazem said. “Few states are more dependent on increasing immigration togrow or even maintain their workforces than Iowa."
Joe Murphy, the Iowa Business Council’s president, said increased immigration could bring“economic innovation and economic opportunity to our state that's going to create moreopportunities and expand Iowa's business competitiveness.”
Ralston said he hears many stories about the trouble Iowa companies encounter findingworkers. He recalled one ABI member so desperate for workers that he told him “we'll takeanybody if they're here legally and want to come. We will help them learn English on theclock so they are getting paid while they do.”