Day labor -- not a niche market anymore

I noticed there was a post on immigration and I decided to expannd upon it. This article shows that the biggest employers of illegal immigrants is the general American public. People seeking day labor to move furniture, contruction, or landscaping simply drive down to the local Home Depot and pick up some of these guys. So what's the problem? Cheap skilled labor at a fraction of the cost and the consumer wins right? Well not in every case, some business owners are saying they're losing customers because they can't compete with the prices of illegal immigrants willing to work for so little. So the problem we face is, this: Should they crack down on day labor (restricting the market) or let the other companies compete? The day laborers are definately cheaper but lack things like insurance and guarantees. On the other hand, people still get shady deals from contractors while still paying much more.