More than a year after the federal government began immigration enforcement operations in Southern California, Los Angeles’ businesses continue to grapple with revenue losses and fewer customer visits, according to a UCLA study released Wednesday.
The study by the UCLA Latino Policy and Politics Institute and Inclusive Action for the City, a community development financial institution, examined data from businesses that are near nine immigration sites — Pacoima, Westlake, Fashion District, Warehouse District, Cypress Park, Huntington Park, Paramount, Whittier and Ladera Heights.
Researchers found those within a half-a-mile distance from the nine enforcement sites had 46,000 fewer customer visits and lost an estimated $3.16 million in revenue within two weeks of ICE raids in June 2025.
And shops closest to the enforcement sites experienced the steepest declines in customer traffic with many still struggling to recover a year later, according to the study.
“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.
When the researchers surveyed 75 Latino business owners across LA County, 68% said they had to temporarily close or reduce business hours following the enforcement activity. And more than 50% said their workers did not show up to work because of fear of being detained by ICE agents.
The survey found 76% said the raids and their aftermath harmed their health and well-being, and 59% reported losing more than half their revenue.
Nearly a year later, 95% said they continued to face financial challenges, with 52% reporting they were unable to consistently cover operating costs and 43% saying they were only breaking even.
One business owner in the report described the immediate impact of the enforcement activity.
“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 their metal gates,” said Berenice, who has operated a party supply store for 17 years.
The report concluded that many business owners have depleted savings, taken on debt and postponed expansion plans as they continue to deal with the economic fallout from enforcement operations.