What CEOs Need to Know About Foreign-Born Workers and the Labor Gap

The Trump administration is pursuing significant shifts in U.S. immigration policy, which will likely have a significant impact on the labor market. As workforce shortages threaten business operations and growth, CEOs must understand the role that foreign-born workers play in the U.S. economy. Immigration policies and enforcement actions have direct implications for talent pipelines, workforce stability, and overall business competitiveness.  

Foreign-Born Workers Are Filling the Labor Gap

America needs more workers to support its growing economy, and foreign-born workers are essential to meeting the labor needs of U.S. businesses. Almost 1 in 5 workers (18.6%) were foreign-born in 2023. A SHRM analysis of government data finds the number of foreign-born workers increased by 17.7% between January 2021 and October 2024.  

Without that increase in foreign-born workers, the U.S. labor pool would currently have nearly 900,000 fewer workers, according to an analysis by the Federal Reserve Bank of Dallas. This increase has been a lifeline to many organizations struggling to fill open roles in a labor market where available jobs have consistently outnumbered job seekers since mid-2021.

Foreign-born workers are represented across all industries but are particularly concentrated in essential sectors:

• Over one-third of all jobs in construction; building and grounds maintenance; and agriculture are held by foreign-born workers.  

• States such as California and New Jersey rely heavily on foreign-born labor, with about one-third of their workforces composed of immigrants. Conversely, states such as West Virginia, Montana, and Wyoming have foreign-born populations below 5% of their labor force.

For CEOs, these statistics underscore two critical takeaways: Workforce availability is increasingly dependent on immigration trends, and businesses must proactively adapt to these shifts.

Understanding the Shifting Immigration Landscape and Its Business Implications

In any year between 2006 and 2022, no one region accounted for more than half of all recent immigrants who were labor force participants, though between 70% and 80% of recent immigrant workers were born in either Latin America or Asia, with Asian immigrants gaining ground from the late 2000s to the mid-2010s. That pattern has shifted, as 51.4% of recent immigrant workers in 2023 were born in Latin America.

Businesses need to ensure their organizations are set up to take advantage of this evolving foreign-born workforce. Depending on your organization’s location and industry, shifting immigration patterns may change the availability of workers. Inclusive hiring practices and workforce integration are essential to making the most of available foreign-born workers. CEOs should consider:

• Reviewing hiring and workforce planning strategies to ensure alignment with changing immigration patterns.

• Strengthening workforce integration programs to support the growing Latin American labor force.

• Engaging with policymakers and business coalitions to advocate for a stable and predictable immigration framework.

Immigration Policy and Compliance Risks for CEOs

The Trump administration has signaled an increased willingness to pursue immigration raids in a variety of locations, including workplaces.  

A 2025 SHRM survey found that:

• Over half (52%) of HR professionals say their organizations are not at all prepared (27%) or only a little prepared (25%) for the possibility of a U.S. Immigration and Customs Enforcement (ICE) raid at their workplace.
• 47% anticipate increased staff emotional distress following an ICE raid.
• 35% expect a decline in employee morale and engagement.

Any policy change that makes it harder for foreign-born workers to find employment in the U.S. will impact businesses as well. The impact isn’t limited to the workers who are detained or deported, or the leaders who must fill those vacant roles.  

Noncompliance with immigration laws can lead to steep fines, operational disruptions, and reputational damage. CEOs must ensure their organizations are equipped to navigate these challenges by:  

• Conducting internal audits of Form I-9 compliance and work authorization records.

• Developing clear response protocols for potential enforcement actions.

• Engaging with legal experts and HR leaders to ensure regulatory compliance.

Business Leadership on Immigration Policy

Immigration policies don’t just impact workers; they shape the future of industries and economic growth. CEOs must take an active role in shaping policies that support a diverse and skilled labor force.

In 2023, SHRM, alongside a coalition of business groups, successfully defended the work authorizations of H-4 visa holders, ensuring that more than 90,000 individuals could continue contributing to the U.S. economy. When business leaders work together, they can preserve access to critical talent and empower economic growth.

To ensure continued access to critical talent, CEOs should:

• Advocate for policy reforms that address labor shortages.

• Partner with business associations to shape immigration discussions.

• Implement inclusive hiring practices that maximize the potential of foreign-born talent.

Foreign-born workers are integral to the U.S. economy. Business leaders who recognize this shift and take proactive steps to adapt — whether through policy engagement, workforce planning, or compliance preparedness — will be in the best position for sustained success.

SHRM’s U.S. Employment Immigration Specialty Credential can help organizations increase effectiveness in managing employment visas, regulations, employment verification processes and audit risks.