A recently released report by the Los Angeles County Economic Development Corporation (LAEDC) and the Department of Economic Opportunity (DEO) highlighted the severe financial impact the immigration raids have been having on local businesses and communities, especially in the San Fernando Valley.
Released on Feb. 9, the report is the culmination of six previous reports by the LAEDC and DEO that studied the impacts of the raids on the county’s economy and workforce since 2015. The report found that undocumented workers contribute an estimated $253.9 billion in total economic output, approximately 17% of LA County’s gross domestic product (GDP).
These workers support more than 1.06 million jobs and generate $80.4 billion, the report continued, in labor income across industries including manufacturing, infrastructure, retail and services.
But between July and September 2025, just a month after the immigration raids began, businesses reported losses of $3.7 million. Around 82% of business interview respondents said they were negatively impacted in one or more ways. About 52% said they experienced a reduction in daily sales or revenue, 51% reported a decrease in customer traffic and 44% said they lost more than half of their revenue.
Nearly 70% of businesses affected were in one of five industries: restaurants/food service, retail stores, professional services, personal services and manufacturing. Additionally, most of the respondents were small businesses, as the majority of them had fewer than 10 employees.
Curfew Increased Fallout
When protests erupted in early June in downtown LA in response to the raids, Mayor Karen Bass enacted a weeklong curfew. Although it was meant to protect residents and businesses, the report’s findings suggest that it may have done more harm than good.
It’s estimated that the curfew resulted in approximately $840 million in total output losses, 3,920 job-years of lost employment and $312 million in lost labor income.
“Small businesses and workers across Los Angeles County have felt the real consequences of the [Donald] Trump administration’s cruel and inhumane federal immigration enforcement,” said LA County Board of Supervisors Chair Hilda Solis. “This report shows how these actions have affected livelihoods, disrupted the local economy and challenged our communities. It highlights the vital contributions of immigrant workers and the obstacles small businesses face when fear and uncertainty take hold.”
A Vulnerable Northeast Valley
The raids by Immigration and Customs Enforcement (ICE) have impacted communities all across LA, particularly within the Northeast San Fernando Valley. Not only does the valley have among the highest concentrations of foreign-born individuals in LA County, according to the report, but it’s the most vulnerable with respect to immigration enforcement activity.
Among the top 10 zip codes in LA County most vulnerable to the raids, the number one spot was 91402, which represents Mission Hills, Panorama City and North Hills. According to the LA Rapid Response Network (LARRN) – a coalition of faith, labor, legal and community organizations to protect and defend immigrants – there have been 40 reported incidents within that area since August 2025.
That equals the same number of LARRN enforcement reports for the next three zip codes – 90201 (Bell), 90660 (Pico Rivera) and 90011 (Southeast LA) – combined.
“The out-of-control ICE raids are doing senseless and catastrophic harm to our country, and we are seeing the toll right here in LA County,” said Board of Supervisors Janice Hahn. “They are ripping apart families, treating our neighborhoods like warzones, and now we have hard data about the damage they are doing to our economy. … This is entirely the [Trump] administration’s doing, and they can make this pain stop now.”
Businesses have resorted to different methods in an attempt to mitigate the impact of these raids. Most have tried to reduce their hours of operation (32%), while others close on days when raids occur nearby (28%).
Regardless, the report also indicates how the immigration raids have raised safety concerns among the community and how people are less likely to leave their homes. One metric that seems to support this is the decline in LA Metro ridership following the start of the raids. Between June and August, bus ridership on high-vulnerability lines dropped by 17,000 monthly riders.
Aid for Small Businesses
As a result of these disruptions, the DEO has been providing financial relief to the small businesses that are being impacted. It launched the LA Region Small Business Resiliency Fund (SBRF) in September 2025, and in December, it had awarded $1.53 million in grants to 367 businesses.
An additional $3.33 million in funding was approved by the Board of Supervisors to expand the program to allow the DEO to support another 650 small businesses.
“Immigration enforcement has caused widespread disruption, but LA County is responding with urgency, investing in sharing critical information and technical assistance to workers and employers, disbursing cash relief to small businesses and offering paid work for youth and impacted families to help stabilize our communities and rebuild economic security,” said Kelly LoBianco, director of the DEO.
To read the report and access other resources from the DEO, go to https://opportunity.lacounty.gov/immigration/.