Boestic says labor is tight also in agriculture, hospitality

Boestic says labor is tight also in agriculture, hospitality

Labor Shortages in Agriculture and Hospitality Spark Concerns Over Food Prices and Economic Stability

Recent developments highlight growing labor shortages in the U.S. agricultural and hospitality sectors, raising concerns about their economic and consumer price implications. The Trump administration's immigration enforcement measures, including reduced inflows of undocumented workers and stricter enforcement of immigration laws, have exacerbated labor gaps, according to a Federal Register filing by the Labor Department. The agency warned that these shortages pose a "sufficient risk of supply shock-induced food shortages" and could destabilize domestic food production and pricing according to the Labor Department.

A 2025 study by Michigan State University (MSU) quantified the financial impact, finding that a 10% decline in farm employment could lead to a 3% increase in food prices for labor-intensive crops. The study estimated that labor shortages in specialty crops—worth $115 billion annually—could drive up consumer costs by nearly $3.4 billion according to the study. Farmers across the U.S. have reported difficulties hiring sufficient workers, with one blueberry grower in New Jersey noting that only 200 of 600-700 needed laborers were available during harvest season, resulting in significant crop losses as reported by agricultural sources.

The reliance on immigrant labor remains critical, as foreign-born workers account for 38% of jobs in farming, fishing, and forestry, despite making up just 19% of the overall U.S. labor force according to federal data. The Labor Department acknowledged that American workers are unwilling or unable to fill these roles, citing the physically demanding nature of agricultural work and long hours. Meanwhile, the H-2A visa program—used to bring temporary foreign workers—faces challenges as wages rise and administrative costs increase, though recent rule changes aim to reduce labor expenses for employers according to analysis.

The hospitality sector, similarly affected by immigration policies, has faced staffing crises, though specific data on its financial impact remains limited as noted in industry reports.

These labor constraints, compounded by trade tensions and rising input costs, threaten U.S. agricultural competitiveness and rural economies. As the administration balances immigration enforcement with workforce needs, stakeholders urge policies that stabilize labor markets while addressing long-term food system resilience according to experts.

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