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Trump immigration sweeps upended L.A.’s economy, with some businesses losing big

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Trump immigration sweeps upended L.A.’s economy, with some businesses losing big

The first month of President Trump’s immigration crackdown in Los Angeles put a dent in the area’s economy, costing business owners millions in lost revenue and exponentially more in lost output from workers, according to a new county report.

The survey found that 82% of businesses reported negative impacts from the raids that began early last June and 44% reported losses of greater than half their normal revenue. More than two-thirds of respondents said they had changed operations, such as by reducing hours and delaying expansion plans. Some said they had to close temporarily or had difficulty obtaining supplies and services from usual vendors.

The report was prepared jointly with the L.A. County Department of Economic Opportunity; researchers from a nonprofit group called the Los Angeles County Economic Development Corporation conducted an online survey of hundreds of local businesses.

The survey is the latest evidence that the raids upended parts of the Los Angeles economy as some residents here illegally went underground and employers lost workers amid the arrests. It’s clear the immigration action hit some areas and sectors of the economy harder than others. Some communities were largely unaffected. But in immigrant communities such as downtown L.A., Boyle Heights and Santa Ana, merchants have reported impacts.

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The report said some sectors, such as restaurants, construction and retail, would be particularly hard hit. But the authors said both employers and employees found innovative ways to keep going.

“How these businesses are adapting, it’s really a testament to their resilience,” said Justin L. Adams, a senior economist with the Los Angeles County Economic Development Corporation.

According to the report, released this week, undocumented workers contribute an estimated $253.9 billion in total economic output, equivalent to 17% of L.A. County’s gross domestic product. These undocumented workers support over 1.06 million jobs and generate $80.4 billion in labor income across a range of industries, including construction, manufacturing, retail, and services, the report said.

But when masked agents with the Department of Homeland Security started roaming the Southland, targeting immigrants for deportation and arresting the activists and American citizens who followed them on their missions, businesses suffered as workers in the county’s underground economy went into hiding.

In the first week of June alone, when the raids began in earnest and the National Guard was deployed into the city with active-duty Marines, researchers estimated that the nightly curfew downtown resulted in an estimated $840 million in economic output losses, according to the report.

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An analysis of L.A. Metro data, according to the report, showed that bus ridership on high-vulnerability transit lines around that time declined about 17,000 monthly riders compared with baseline levels.

“The out-of-control ICE raids are doing senseless and catastrophic harm to our country, and we are seeing the toll,” L.A. County Supervisor Janice Hahn, who lobbied to commission the report alongside Supervisor Hilda L. Solis, said in a statement.

Adams, one of the authors of the report, said researchers partnered with the USC Equity Research Institute to create an updated, current estimate of undocumented workers in L.A. County, finding it to be about 948,700.

With the county’s overall population at roughly 10 million, undocumented residents represent nearly 1 in 10 people, Adams noted.

“It’s pretty sizable,” he said. “They are going to have a large economic impact on the county.”

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That businesses in the area have been hurt by raid-related disruptions is not necessarily surprising, Adams said, but the report “reinforced and helped quantify that.”

He continued, “It’s not straightforward to do, because this is essentially trying to measure a big portion of the shadow economy.”

About 311 people responded to the survey, but not everyone fully identified themselves, their business or its location, possibly out of concern for future immigration raids, Adams said.

Across some 178 interviews, business owners described seeing significant changes among consumers, including reduced spending and customers avoiding certain areas of the county altogether. Employees expressed fear about coming to work, productivity fell due to worker anxiety, and businesses faced difficulty finding replacement workers, the report said.

Owners described additional costs such as banking expenses for loans to cover lost revenue, more advertising and marketing to attract more business, boosted wages to attract replacement workers, and legal expenses to support detained workers. One business owner said she picked up a side job in order to keep her workers employed, while others had added expenses such as lunch deliveries or gas cards to help employees avoid open areas and public transportation.

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For small-business owners, even small fluctuations in revenue can have ripple effects, affecting their ability to pay rent and vendors.

Ben Johnston, chief operating officer of Kapitus, a firm offering financing to small businesses, wrote in a memo describing expected trends in 2026 that he expects costs to continue to rise for the restaurant industry in particular, which already struggles with thin profit margins and relies heavily on immigrant labor.

“The crackdown on undocumented immigration weighs on the industry, further reducing margins for restaurants who are trying to keep menu prices as affordable as possible,” Johnston said.

The L.A. County report echoes findings by UC Merced researchers based on U.S. census survey data that found that the week after the raids began in June, the number of people reporting private sector employment in California decreased by 3.1% — an employment downturn matched in modern history only by the COVID-19 lockdowns.

Statewide, undocumented workers generate nearly 5% of California’s gross domestic product through their wages earned and the goods and services they help produce alone, according to a report last year from the Bay Area Council Economic Institute. That rises to 9% when additional business activity and other benefits of their labor are added.

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With 2.28 million undocumented immigrants living in California, they represent 8% of workers in the state, with nearly two-thirds having lived in the state for over a decade. Their total contribution in local, state and federal taxes is $23 billion annually, according to the Bay Area Council Economic Institute.

In L.A. County, officials have sought to stem the bleeding from the immigration sweeps by launching a fund to deliver financial relief to small businesses. As of December, some 367 businesses have been awarded more than $1.53 million in grants. The county has also expanded potential paid hours for youth who have become primary earners for their families due to immigration enforcement and sought to connect these youth to employment opportunities.

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Video: Why Your Paycheck Feels Smaller

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Video: Why Your Paycheck Feels Smaller

new video loaded: Why Your Paycheck Feels Smaller

Ben Casselman, our chief economics correspondent, explains why wages are not keeping up with inflation and what that means for American workers and the economy.

By Ben Casselman, Nour Idriss, Sutton Raphael and Stephanie Swart

April 18, 2026

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.

On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.

During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.

The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.

The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.

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(Jae C. Hong / Associated Press)

Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.

Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.

“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”

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The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.

Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.

Attorneys representing Baldwin and the producers were not immediately available for comment.

Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.

On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.

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The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.

Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.

New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.

Baldwin faced a similar charge, but the case against him unraveled spectacularly.

On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.

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Variety first reported on Friday’s court action.

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California’s gas prices push Uber and Lyft drivers off the road

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California’s gas prices push Uber and Lyft drivers off the road

The highest gas prices in the country are making it tougher for some gig drivers to make a living.

Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.

While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.

John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.

“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”

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Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.

Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.

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Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.

The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.

On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.

Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.

That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.

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“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.

Pedestrians cross the street in front of a Lyft and Uber driver.

Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.

(Jess Lynn Goss / For The Times)

Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.

Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.

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“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.

Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”

The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.

Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.

“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”

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Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”

Guests at The Westin St. Francis hotel get into an Uber.

Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig workers have struggled with rising gas prices in the past.

In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.

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Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.

Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.

“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.

Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.

He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.

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Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”

A man stands for a portrait in a white button up shirt

John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.

(Jess Lynn Goss / For The Times)

Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.

“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”

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In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.

“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”

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