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ICE Spike Means 32,000 Fewer Jobs in Minnesota

From the earliest preliminary reports to the most recent data analysis, both local and national research have shown that mass arrests of immigrants have a substantial negative impact on the economy. Adding to this growing body of research, new analysis by the Minnesota Budget Project and the Immigration Research Initiative, based on work by Chloe East and Elizabeth Cox, allows us to estimate that there are now 32,000 fewer jobs in Minnesota than there would have been without the massive increase in ICE arrests.

Immigration Research Initiative

It is increasingly clear that the program of mass deportation being carried out by the current administration is hurting American workers, both immigrants and those born in the United States. Nowhere has this been more stark than in Minnesota. In the peak months of December 2025 through February 2026, the massive surge in ICE arrests ripped people away from their families, their jobs, and their communities.

A shocking nearly 4,000 arrests took place in Minnesota over the course of the surge. Arrests reached a peak of 2,524 in January 2026, up from an average of 185 arrests per month for the first 11 months of 2025. The notion that deporting immigrants causes job losses for U.S.-born workers runs counter to some common narratives about deportation.

It is, however, very much in line with the economic research on mass deportations. Immigrant and U.S.-born workers often hold complementary roles and when one group disappears, work dries up for the other. When immigrant workers are removed from the labor market through detention and deportation, it shrinks the workforce and shrinks the consumer base as many immigrants and their families no longer shop at businesses or eat at restaurants.

Exacerbating this cycle of job loss is a chilling effect. Some immigrants, including some with authorization to work, such as those with green cards and those who are U.S. citizens, stay away from work and other activities in order to protect themselves from reckless ICE actions that could result in their arrest and detention, despite their legal status.

Workers are also worse off when ICE targeting makes them more vulnerable to exploitation. Studies have shown that ICE targeting results in an increased number of on-the-job accidents and minimum wage violations for all workers, as workers feel less empowered to report workplace safety and labor law concerns.

The economic impact of the torrent of harmful changes in immigration enforcement is increasingly evident. Because of immigration and other federal policies, the overall U.S. labor market in 2025 was weaker than in 2024, with higher unemployment, slower hiring, and stagnating wages.

Numerous news articles report that employers are having a hard time finding workers due to heightened ICE activity, with no indication of gains in either wages or employment of U.S.-born workers. And recent analyses have found sizable declines in foot traffic and consumer spending following ICE raids during the current administration, which could reduce demand for workers.

Nationally, a September 2026 report from Brookings Institution recently updated a prior study reaching a parallel conclusion: increased immigration arrests depress local employment, the employment shortfall significantly exceeds the number of arrests, and the effects are long-lasting.

In Minnesota specifically, North Star Policy Action estimated very early on the dollar impact of Operation Metro Surge , the employment decline , the high unemployment rate after the surge , job losses in February , and job losses in the leisure and hospitality sector . The research is clear—increased immigration enforcement comes at an economic cost to everyone, including U.S.-born workers.

Estimating the Decline in Employment from Metro Surge & PARRIS In order to illustrate what the impacts of surges in immigration enforcement could be at the state level, researchers Chloe East and Elizabeth Cox from the University of Colorado, in partnership with IRI, modeled a scenario in which one percent of the immigrants most at risk, defined as immigrant men with a high school education or less, are arrested. (See the methodology section for details.) This model uses data from January to November 2025—before Operation Metro Surge was in effect in Minnesota.

It predicts that a dramatic statewide surge in enforcement that resulted in the arrest of one percent of the most at-risk population would cause a direct removal of 700 immigrant men from their jobs and an additional drop in employment of another 1,300 immigrant men. In this scenario specifically, the predicted job loss for U.S.-born men in Minnesota is 4,500.

One percent was used as a simple example. Our analysis quantifies the impact on both immigrants and U.S.-born workers in Minnesota based on the actual arrest data during Operation Metro Surge and PARRIS. During the surge in Minnesota, nearly 4,000 immigrants, 86 percent of them male, were arrested between December 2025 and February 2026.

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