A new report suggests that a recent federal immigration enforcement effort may have significantly disrupted Minnesota’s labor market, contributing to thousands of job losses in the construction and hospitality sectors.
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According to data cited by the North Star Policy Action, Minnesota lost approximately 4,400 construction jobs and 5,700 hospitality jobs between December and February. These declines represent about 3% and 2.1% of total employment in those sectors, respectively.
The report links the losses to Operation Metro Surge, a federal immigration enforcement initiative that brought a large presence of agents into the Twin Cities late last year.
“Today’s report reinforces what we already know: Operation Metro Surge caused serious and accumulating harm to Minnesota’s economy,” said Jake Schwitzer, executive director of North Star Policy Action, in a statement.
The construction industry, which relies heavily on immigrant labor, appears to have been particularly affected. The report describes the drop in construction employment as “a real decline, concentrated in Minnesota, in an industry with deep ties to the immigrant workforce that Operation Metro Surge directly went after.”
Business owners have reported repeated encounters with federal agents at job sites, leading to worker detentions and a shrinking labor pool. These disruptions come at a critical time, as contractors typically ramp up hiring ahead of the spring construction season.
Officials at the Minnesota Department of Employment and Economic Development also acknowledged the broader economic strain. Commissioner Matt Varilek said the surge in federal enforcement activity contributed to a challenging labor market environment.
“February was a very challenging month for Minnesota communities due to the ICE presence, and that also contributed to it being a tough month for the state’s labor market,” Varilek said.
The employment declines coincided with a sharp rise in the state’s unemployment rate, which increased from 3.5% in December to 4.5% in February. Such rapid changes are uncommon outside of major economic disruptions, such as the onset of the COVID-19 pandemic.
Researchers estimate that the economic impact extends beyond job losses. Early figures suggest more than $106 million in lost wages across the Twin Cities and over $203 million in broader economic losses in Minneapolis alone, though analysts caution that more comprehensive data will take time to develop.
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“It may be a long time before we have objective data that can really speak to the impact of what occurred,” said Aaron Rosenthal, a researcher with North Star Policy Action.
Efforts to provide relief have faced political and logistical challenges. In Minneapolis, Mayor Jacob Frey vetoed a proposal to extend eviction notice requirements, though the city has expanded emergency rental assistance programs.
At the state level, lawmakers remain divided over the appropriate response. Republican legislators have opposed relief measures, arguing that state immigration policies contributed to the economic fallout, while advocates for workers and immigrant communities say additional support is urgently needed.
As policymakers continue to debate next steps, the report underscores the potential economic consequences of large-scale enforcement actions on industries that depend heavily on immigrant labor — particularly construction, where workforce stability is critical to project delivery timelines and broader economic growth.
Originally reported by Brian Martucci in News From The States.
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