A UCLA study reports that businesses situated within a half-mile of nine immigration enforcement locations in Los Angeles experienced an estimated $3.16 million in lost revenue and about 46,000 fewer customer visits in the two weeks following ICE actions in June 2025.
Scope and immediate impact
Researchers from the UCLA Latino Policy and Politics Institute and Inclusive Action for the City analyzed commercial activity near enforcement sites in Pacoima, Westlake, the Fashion District, Warehouse District, Cypress Park, Huntington Park, Paramount, Whittier and Ladera Heights. The sharpest drops occurred at businesses closest to the actions; many had not returned to prior traffic levels nearly a year later.
The authors caution their figures are a partial accounting. The study covers only nine documented sites and the two weeks after each initial operation, and therefore likely underestimates the full economic fallout.
"Our analysis covers only nine enforcement sites, a fraction of the operations across Los Angeles County during this period, and captures just the two weeks following the first documented action at each site. Given the scale of enforcement activity, the true cumulative loss is far greater than the figures reported here," the study noted.
Business-owner experiences and survey findings
The study paired transaction and mobility data with a survey of 75 Latino business owners across Los Angeles County. Key findings from that survey include:
- 68% temporarily closed or reduced hours after enforcement activity.
- More than 50% reported employees did not show up to work due to fear of detention.
- 76% said the raids harmed their health or well-being.
- 59% reported losing more than half their revenue.
- Nearly a year later, 95% continued to face financial challenges; 52% said they could not reliably cover operating costs and 43% were breaking even.
"The first operation was two blocks from my store. Helicopters. Complete chaos. From that day on, people were afraid to go out. You would hear all the merchants pulling down"
What the numbers show
The quantitative and qualitative evidence in the report points to both immediate and lingering shocks to local commerce: short-term drops in foot traffic and sales, labor shortages for fear-driven absenteeism, and sustained financial strain for a large share of affected merchants.
| Measure | Result |
|---|---|
| Estimated lost revenue (two-week window) | $3.16 million |
| Fewer customer visits (two weeks) | 46,000 |
| Business owners surveyed | 75 |
Implications
Economically, the study suggests localized enforcement can produce measurable declines in consumer demand and workforce participation, with ripple effects on small-business solvency. Politically and administratively, the authors note the reported totals are conservative and that county- or state-level tallies would likely show substantially larger cumulative losses.
For policymakers, the findings highlight a trade-off: immigration enforcement activities can impose immediate costs on nearby commercial corridors and labor markets. For business support organizations and local governments, the study underscores demand for targeted relief and outreach to help merchants recover lost revenue and rebuild customer confidence.
The report does not attempt to quantify longer-term impacts, such as business closures or credit stress beyond the one-year follow-up; it does document persistent financial strain for the majority of surveyed owners.
