The Role of Foreign-Born Workers: Driving Growth in the U.S. Labor Force

ALEXANDRIA, Va. – Today, SHRM, the trusted authority on all things work, worker, and the workplace, released new findings on the growing role of foreign-born workers in the U.S. labor force. Nearly 1 in 5 U.S. workers are now foreign-born, almost doubling since 1998, according to SHRM’s report. 

The U.S. labor force continues to evolve, with foreign-born workers playing an increasingly vital role in the nation's economy. This demographic shift underscores the growing contribution of immigrant workers across various industries and occupations.

"Foreign-born workers are a vital force in our labor market, driving innovation, filling critical workforce gaps, and fueling economic growth," said Emily M. Dickens, SHRM Chief of Staff and Head of Government Affairs. "As businesses navigate workforce challenges, it is crucial to recognize the value of this talent pool and create inclusive policies that support both employers and employees."

Key Findings:

• The foreign-born labor force has surged to 32.4 million, growing by 17.7% since 2021.

• Foreign-born workers have a higher labor force participation rate (66.8%) than native-born workers (61.7%).

• These workers dominate key industries, making up over 25% of workers in construction, cleaning, farming, and tech, and at least 20% in seven other industries, such as transportation, agriculture, and goods manufacturing.

• Foreign-born individuals are more likely to be in their prime working years (57.9% vs. 45.8% for native-born workers).

• Nearly 75% of foreign-born labor force participants come from just 20 countries, with most recent migrants hailing from Latin America or Asia.

• Their presence varies by state, exceeding 30% in New Jersey and California but as low as 1.97% in West Virginia.

• Immigration patterns are shifting, with Mexico's share declining from over a third in 2006 to 13.3% in 2023.

• Foreign-born workers are represented at both ends of the education spectrum, from low-skilled roles to advanced-degree professions.

Workforce Contributions and Economic Integration

The presence of the foreign-born workforce spans both manual labor-intensive fields and highly skilled sectors such as technology and healthcare, playing an indispensable role in workforce stability and economic growth. The distribution of these workers varies widely by state, influenced by migration patterns and industry demands. Despite economic fluctuations, these workers have demonstrated resilience, maintained high labor force participation rates, and helped fill essential roles in high-demand industries.

The Future of Work

As labor market dynamics continue to evolve, foreign-born workers will remain integral to meeting workforce demands. Understanding these trends is critical for policymakers, business leaders, and organizations shaping the future of work in the U.S. Emphasizing inclusive workforce policies will be key to maximizing the contributions of immigrant labor in an increasingly competitive economy.

About SHRM 
SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together. As the trusted authority on all things work, SHRM is the foremost expert, researcher, advocate, and thought leader on issues and innovations impacting today’s evolving workplaces. With nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and their families globally. Discover more at SHRM.org.