ICE operations in Los Angeles drive down sales and worker attendance, UCLA study finds

Immigration and Customs Enforcement (ICE) operations in Los Angeles have had a ripple effect, significantly harming local businesses and altering consumer habits, a new study from the University of California, Los Angeles (UCLA) reveals. The report, titled "The Cost of Fear," indicates that the climate of fear surrounding detentions has led to fewer customers and a decline in sales across nearly all surveyed merchants.

The study found that 59% of businesses reported a reduction in commercial revenue exceeding half of their usual income. Furthermore, 51% of businesses noted employee absences, as workers stayed home fearing detention during commutes or at their workplaces. In nine locations observed over the two weeks following the operations, an estimated 46,000 fewer customer visits were recorded, translating to an estimated $3.16 million in losses.

The impact varied by sector, with non-essential retail and personal services experiencing the most significant downturns. Retail complexes saw a 4.37% drop, personal services like salons and laundromats fell by 3.36%, and department stores declined by 2.89%. Cafes and bakeries experienced a 2.49% decrease, while restaurants saw a 1.06% reduction, with some reporting cancellations of events like graduations and weddings.

These financial pressures forced some business owners to reduce staff or take on more work themselves, with some micro-business owners reportedly working up to 18 hours daily. The study also highlighted long-term consequences, with 68% of businesses temporarily closing or reducing operating hours. Nearly a year later, 95% of entrepreneurs reported ongoing financial stress, and 52% stated their sales were insufficient to cover basic operational costs, leading to increased debt.