The Latino Contribution Boom: Immigrant Workers Set a U.S. Record Amid Labor Shortage

The U.S. Department of Labor has revealed shocking data showing how the share of foreign-born employees in the U.S. workforce peaked in 2021. This highlights the essential role immigrants play in the labor market, particularly at a time when more Americans are aging and retiring during a notable labor shortage. 

According to statistics from the Department of Labor, in 2022, the number of foreign-born workers in the U.S. increased significantly to 29.8 million, compared to 27.9 million the previous year, representing an increase of about 6%. In contrast, the number of native-born workers grew by just 1%, from 133.2 million to 134.5 million. 

One contributing factor to this phenomenon is that a higher proportion of the immigrant population is in the working age (18-64 years), with 77% within this age range, according to data from the Migration Policy Institute (MPI). This figure contrasts with 59% of the native population in the same age range. 

Although the relative size of the immigrant population has remained stable over the last two decades, representing 13.6% of the total U.S. population in 2021 (according to MPI data), foreign-born workers tend to occupy different job positions than natives and, overall, earn lower wages. 

In 2022, the median weekly earnings for full-time foreign-born workers were $945, equivalent to 87% of the earnings of their U.S. counterparts. Despite this, critics of immigration may argue that the record number of foreign-born workers could be leading to job loss for Americans. However, available data does not support this idea. 

The labor situation in the U.S. in 2022 revealed a surprising dynamic, as, despite the considerable increase in net immigration, numerous job opportunities remained. There were times in the year when there were even two job openings for every person seeking employment. Additionally, the unemployment rate stayed near historic lows throughout the year. 

Amidst this situation, several prosperous countries have been designing innovative immigration policies to attract more workers and combat inflation, as recently reported in the Wall Street Journal. 

Moody's Investors Service emphasized that policies promoting immigration will play a crucial role in determining the magnitude and duration of labor supply-related challenges. However, the issue of immigration law in the United States remains a controversial and seemingly challenging topic to resolve. 

Phillip Connor, Chief Demographer of FWD.US, an immigration advocacy organization, underscored the importance of immigration for workforce growth, stating, "If you're looking for a growing workforce, without immigration, that's not going to happen." These data highlight the complexity and relevance of immigration in the current labor landscape of the United States. 

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