Foreign-Born Workers Thriving While Americans Struggle?

Foreign-Born Workers Thriving While Americans Struggle?

You won’t believe the disparity in employment trends taking place in America today, as millions of native-born workers lose their jobs while foreign-born workers make surprising employment gains.

In the past year, job losses among native-born Americans have skyrocketed to over 1.3 million, whereas foreign-born workers have seen employment gains exceeding 1.2 million. Main sectors experiencing these divergent trends include construction and health care, with the labor market continuing to show ongoing challenges. Adding to the complexity, over 9 million immigrants have entered the U.S. since 2020, intensifying debates on immigration policies. What’s the story behind these contrasting trends?

Native-born Americans lost over 1.3 million jobs in the past year, while foreign-born workers gained more than 1.2 million jobs. This stark contrast leaves many questioning the underlying causes and ramifications. According to recent reports, the U.S. added 142,000 nonfarm payroll jobs in August, falling short of economists’ expectations of 160,000. The unemployment rate slightly dipped to 4.2%.

The native-born workforce decreased to 129.7 million from 131 million a year ago, while foreign-born workers saw their employment increase to 31.6 million from 30.4 million. This rise happened amid a surge of over 9 million immigrants since the end of 2020, 2.6 million entering lawfully and 6.5 million without prior authorization.

Multiple job holders increased by 65,000, part-time workers surged by 527,000, and full-time workers declined by 438,000. While sectors like construction and health care saw job gains, health care’s gains were lower than its 12-month average, suggesting an imbalanced job market.

“U.S. job growth picked up in August but failed to meet economists’ expectations.” –

The shift in employment trends raises pertinent questions about the economic implications and could significantly influence debates on immigration policies. Recent revisions of previous months’ data reveal lower job growth than initially reported for June and July. This modest job growth, coupled with downward revisions, underscores ongoing challenges in the U.S. labor market.

Surge in both legal and illegal immigration under the Biden-Harris administration is reshaping the U.S. jobs market. It is reported that recent immigrants are predominantly Spanish-speaking, younger, less-educated, and more readily available to work compared to native U.S. population, impacting the labor participation rate as well as wage dynamics.

“That pattern reverses in later years as the average wage growth of people who are not part of the surge increases slightly because of higher innovation-related productivity and because the increase in the number of less-educated workers boosts the demand for more-educated people to work with them” –

Foreign-born workers held a significant portion of the U.S. civilian labor force last year, accounting for 18.6%, up from 17% in 2020. The unemployment rate for foreign-born workers was notably lower at 3.4% compared to 3.8% for native-born workers, further illustrating the impact of recent immigration trends.

The economic implications stem from more than just job numbers. Immigrants contribute to reducing the federal deficit through taxes, while also increasing state and local government spending on essential services like education, healthcare, and housing. Over time, immigrant wages tend to converge with those of similarly educated U.S. workers, slightly reducing the average wage growth for non-immigrant workers.

“Employers added 142,000 jobs, short of the 160,000 projected by LSEG economists.” –

As policymakers deliberate on immigration and economic strategies, they must consider the diverging employment trends impacting American and foreign-born workers. The need for balanced economic policies becomes evident, aiming to sustain job growth and stability for all segments of the population.

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