Arizona businesses fear that the immigration proposal on the ballot could worsen the worker shortage.

• Immigration is a key issue separating the candidates in the Arizona Senate race.
• Undocumented immigrants' fate will be decided by voters in the state, as they will vote on whether to allow local and state law enforcement to detain and deport them.

Across the country, immigration is a significant election issue, particularly in Arizona, a swing state situated along the southern border and hosting a Senate race that could determine control.

The shortage of workers is posing a threat to the completion of projects in industries such as construction, hospitality, and agriculture, and Arizona businesses warn that without changes to the federal immigration system, the economy could suffer a severe blow.

Immigrants make up about 16.2% of Arizona's workforce, according to a 2022 study by the American Immigration Council. At the same time, the state is facing a job shortage of 197,000 as of June, as reported by the Bureau of Labor Statistics.

The president and CEO of the Arizona Hispanic Chamber of Commerce, Monica Villalobos, stated that the shortage of labor is causing significant economic consequences, including an impact on housing prices.

""Several members in the construction industry are unable to find workers, which leads to a lack of housing when projects cannot be completed," she stated."

The Senate race between Democratic Rep. Ruben Gallego and Republican Kari Lake has also focused on immigration, as they vie to fill the seat left by Sen. Kyrsten Sinema, an independent.

Despite Congress's difficulties in passing immigration reforms, a bipartisan group of senators, including Sinema, created a bill that would have significantly increased worker permits for immigrants. However, the bill was unsuccessful due to political pressure and failed on a procedural vote.

The current legal immigration system is a complete failure for businesses seeking workers and for employees, according to Michael Infanzon, a lobbyist with the Canyon State Business Alliance.

"If it took three years to obtain the necessary paperwork to work in Virginia for six months after moving from Maryland, would you continue with the process or opt for a quicker solution by crossing the border and then returning?"

Gallego has expressed support for the bipartisan legislation and has also advocated for increasing Border Patrol agents and streamlining cross-border trade.

He stated to CNBC that he has been intensely focused on equipping our Ports of Entry with cutting-edge technology and sufficient personnel to manage the cross-border trade that our nation depends on.

Lake supports Trump's plan to deport undocumented immigrants using the National Guard and believes schools are responsible for the worker shortage.

"It's disheartening that our state has millions of immigrants crossing our border just three hours away, and they're getting jobs over our high school and college graduates," she said during an interview in her office. According to the American Immigration Council, about a third of foreign-born immigrants in our state didn't finish high school.

According to John Graham, chairman and CEO of Sunbelt Holdings, the U.S. lacks the workforce to fill jobs in industries including construction and agriculture.

"He stated that the problem is that these individuals are not taking someone else's job while standing near a hotel his company is constructing in downtown Phoenix. These jobs are crucial, and there is no replacement if there is a significant loss of labor."

The American Business and Immigration Council, of which Graham is a board member, sent President Biden a letter in April requesting that he broaden a specific type of immigration permits for individuals who can fill positions where there are workforce shortages.

Arizonians will decide on a measure that, if approved, would enable state and local police to detain noncitizens who entered the country illegally if they had reasonable suspicion.

Graham stated that the dual proposals of mass deportation and allowing local law enforcement to arrest illegal immigrants could have a chilling effect not only on legal immigrants but also on businesses considering moving to Arizona.

The ballot measure is reminiscent of a 2010 state law that criminalized being in the country illegally, prohibited the hiring or transportation of unauthorized immigrants, and made it a crime to not have immigration papers. This law resulted in racial profiling and a decrease in the number of workers in the state. A study by the Grand Canyon Institute estimates that the 2024 ballot measure could cost $325 million annually if implemented.

Our state's previous law definitely contributed to the negative perception of our business community when conventions were canceled, according to Graham.

He stated that we were an outlier with a significant amount of business nationwide due to our unique circumstances.