Recent analysis by Goldman Sachs reveals a significant shift in the composition of the US workforce, with immigrants playing a pivotal role in job growth. According to Business Insider’s examination of Bureau of Labor Statistics data, the share of foreign-born workers in the US labor force increased from 16.8% in January 2020 to 19.3% in March 2024. Contrary to common misconceptions, these newcomers, particularly those without legal residency, have been instrumental in fueling economic expansion rather than displacing native workers.
The report underscores these immigrant workers’ demographic and occupational characteristics, painting a picture of predominantly young, male individuals employed in industries such as construction, professional services, and hospitality. Despite earning less than their US-born counterparts, a notable proportion of recent immigrants possess higher education qualifications, with over 39% holding bachelor’s or advanced degrees compared to 34% of native-born Americans. However, disparities persist in educational attainment, as nearly a quarter of recent immigrants lack a high school diploma.
The influx of immigrants, primarily from South and Central America, has raised concerns about illegal border crossings and strains on urban infrastructure in cities like New York and Chicago. Yet, proponents argue that immigration is essential for sustaining the labor force, particularly as the population ages and birth rates decline. Nevertheless, the debate surrounding immigration policies remains contentious, with divergent views on its impact on wages, employment, and housing costs.
As the US grapples with these complex dynamics, understanding the evolving role of immigrant workers is paramount for policymakers and stakeholders seeking to harness their contributions while addressing associated challenges.
Source: Business insider
