New government data shows that almost 1 in 5 workers last year were born outside the U.S. to parents who aren't American citizens, representing a record-high workforce share.
The share of immigrants in the workforce rose to 18.1% last year, an increase from 17.4% in 2021, according to a recent report by the Bureau of Labor Statistics. This comes after a pandemic dip, when the share of foreign-born workers slipped, an unusual backstep in a trend that's been rising since at least 1996.
Some economists have argued that the dip in immigration during the pandemic was one of the causes of labor-market tightness during the past few years. That coincided with two other demographic trends squeezing the pool of available workers: baby boomers retiring in force and a shrinking American birth rate.
Moody's said in a recent research note that policies encouraging immigration, female labor participation, or the uptake of new, productivity-enhancing technologies would determine the extent and persistence of labor supply challenges.
Immigration rebounded last year, according to U.S. Census data, which found that the nation experienced the most considerable single-year increase in immigrants since 2010. The agency noted that about 1 million people immigrated to the U.S. in 2022, a surge from its recent low of 376,000 people in 2021.
Foreign-born workers had an unemployment rate of 3.4% in 2022, compared with 3.7% for people born in the U.S., according to the BLS. The most significant difference was among men, with about 77% of immigrant male workers over 16 in the workforce, compared with 66% of those born in America.
The government said that foreign-born workers are more likely than those born in the U.S. to work in service industry jobs, natural resources, construction, and maintenance jobs. They're also more likely to work in production, transportation, and material moving jobs. By comparison, American-born workers are more likely to work in management and professional careers.
The analysis found that workers born outside the U.S. earn a median wage of $945 per week, slightly less than the $1,087 per week made by America-born employees. Almost one-half of this group is Hispanic, while another roughly 25% are Asian, the labor department said. Another 16% is White, and about 10% is black, it noted.
Immigrant workers tend to have lower educational attainment, with the analysis finding that 18.3% of foreign-born workers last year hadn't earned a high school diploma, compared with 3.4% for U.S.-born employees.
Login