Labor Force Characteristics of Foreign-born Workers News Release

For release 10:00 a.m. (ET) Tuesday, May 21, 2024                                      USDL-24-1008

Technical information:  (202) 691-6378  *  cpsinfo@bls.gov  *  www.bls.gov/cps 
Media contact:          (202) 691-5902  *  PressOffice@bls.gov 


                FOREIGN-BORN WORKERS: LABOR FORCE CHARACTERISTICS -- 2023


The unemployment rate for the foreign born in the United States edged up from 3.4 percent
in 2022 to 3.6 percent in 2023, the U.S. Bureau of Labor Statistics reported today. The
jobless rate of the native born changed little at 3.6 percent in 2023. Both measures are 
down considerably from their highs in 2020. However, the jobless rate for the foreign born
remains above its level of 3.1 percent in 2019, prior to the coronavirus (COVID-19) pandemic,
while the rate for the native born is below its pre-pandemic level of 3.8 percent.

Data on nativity are collected as part of the Current Population Survey (CPS), a monthly
sample survey of approximately 60,000 households. The foreign born are people who reside in
the United States but who were not U.S. citizens at birth. Specifically, they were born 
outside the United States (or one of its outlying areas such as Puerto Rico or Guam), and
neither parent was a U.S. citizen. The foreign born include legally-admitted immigrants,
refugees, temporary residents such as students and temporary workers, and undocumented 
immigrants. However, the survey does not separately identify people in these categories. 
For further information about the survey, see the Technical Note in this news release.

Highlights from the 2023 data:

 --In 2023, the foreign born accounted for 18.6 percent of the U.S. civilian labor force,
   up from 18.1 percent in 2022. (See table 1.)

 --From 2022 to 2023, the unemployment rate of the foreign born edged up to 3.6 percent,
   while the jobless rate for the native born changed little at 3.6 percent. (See table 1.)

 --Hispanics continued to account for nearly one-half (47.6 percent) of the foreign-born
   labor force in 2023, and Asians accounted for one-quarter. (See table 1.) (Data in this
   news release for people who are White, Black, or Asian do not include those of Hispanic
   or Latino ethnicity. Data on people of Hispanic or Latino ethnicity are presented 
   separately.)

 --Foreign-born men continued to participate in the labor force at a considerably higher
   rate in 2023 (77.5 percent) than their native-born counterparts (66.1 percent). By
   contrast, 56.1 percent of foreign-born women were labor force participants, lower than
   the participation rate of 57.6 percent for native-born women. (See table 1.)

 --In 2023, foreign-born workers were more likely than native-born workers to be employed
   in service occupations; natural resources, construction, and maintenance occupations;
   and in production, transportation, and material moving occupations. Foreign-born workers
   were less likely than native-born workers to be employed in management, professional, 
   and related occupations and in sales and office occupations. (See table 4.)

 --The median usual weekly earnings of foreign-born full-time wage and salary workers were
   $987 in 2023, compared with $1,140 for their native-born counterparts. (See table 5.)
   (Differences in earnings reflect a variety of factors, including variations in the
   distributions of foreign-born and native-born workers by educational attainment,
   occupation, industry, and geographic region.) 

Demographic Characteristics

The demographic composition of the foreign-born labor force differs from that of the 
native-born labor force. In 2023, men accounted for 57.0 percent of the foreign-born labor
force, compared with 52.3 percent of the native-born labor force. By age, the proportion
of the foreign-born labor force made up of 25- to 54-year-olds (70.3 percent) was higher
than for the native-born labor force (62.3 percent). Labor force participation typically
is highest among people in that age bracket. (See table 1.)

In 2023, nearly one-half (47.6 percent) of the foreign-born labor force was Hispanic, and
one-quarter (25.1 percent) was Asian. Hispanics and Asians made up much lower percentages
of the native-born labor force, at 12.5 percent and 2.5 percent, respectively. Whites
comprised 15.3 percent of the foreign-born labor force and Blacks comprised 10.7 percent,
compared with 69.3 percent and 12.5 percent, respectively, of the native-born labor force.

In terms of educational attainment, the proportion of the foreign-born labor force age 25
and over that had not completed high school was 18.5 percent in 2023, much higher than the
figure for the native-born labor force, at 3.3 percent. The foreign born were less likely
than the native born to have some college or an associate degree--15.1 percent versus 27.1
percent. The proportions of foreign-born and native-born high school graduates (25.3 percent
versus 24.7 percent) and those with a bachelor's degree or higher (41.1 percent versus 45.0
percent) were more similar.

Labor Force

In 2023, the foreign born accounted for 18.6 percent of the U.S. civilian labor force, up
from 18.1 percent in 2022. In 2023, the labor force participation rate of the foreign born
increased to 66.6 percent. The rate for foreign-born women increased to 56.1 percent, while
the rate for foreign-born men changed little at 77.5 percent. The labor force participation
rate of the native born rose to 61.8 percent. The rate for native-born women increased to
57.6 percent, while the rate for men was little changed at 66.1 percent. (See table 1.)

Labor force participation rates for the foreign born varied across the major race and 
ethnicity groups in 2023, ranging from 60.7 percent for foreign-born Whites to 72.9 percent
for foreign-born Blacks. Participation rates for the native born showed less variation across
the major race and ethnicity groups, ranging from 61.0 percent for native-born Whites to 65.9
percent for native-born Hispanics.

Among the major race and ethnicity groups, the labor force participation rate of foreign-born
Hispanics increased to 68.2 percent in 2023. The rates for foreign-born Whites, Blacks, and
Asians showed little change over the year. Among the native born, the participation rate of
Blacks increased to 61.3 percent. The rates for native-born Whites, Asians, and Hispanics 
changed little from 2022 to 2023. 

In 2023, foreign-born mothers with children under age 18 were less likely to be labor force
participants than were native-born mothers--64.3 percent versus 77.1 percent. Labor force
participation differences between foreign-born and native-born mothers were greater among 
those with younger children than among those with older children. Among women with children
under age 3, the participation rate for foreign-born mothers was 53.5 percent, 16.1 percentage
points below that for native-born mothers, at 69.6 percent. By comparison, the labor force
participation rate of foreign-born mothers with children ages 6 to 17 (68.8 percent) was 12.0
percentage points lower than that for native-born mothers with children ages 6 to 17 (80.8
percent). The labor force participation rates of foreign-born and native-born fathers with
children under age 18 were more similar, at 93.6 percent and 93.3 percent, respectively. 
(See table 2.)

By region, the foreign born made up a larger share of the labor force in the West (23.9
percent) and in the Northeast (22.6 percent) in 2023 than for the nation as a whole (18.6 
percent). The foreign born made up a smaller share of the labor force than for the nation
as a whole in the South (18.1 percent) and the Midwest (10.1 percent). (See table 6.) 

Employment

In 2023, the employment-population ratio--the number of employed people as a percentage of
the civilian noninstitutional population--of the foreign born increased to 64.2 percent. The
ratio for foreign-born women rose to 53.9 percent, while the ratio for men was little changed
at 74.8 percent. The employment-population ratio of the native born rose to 59.5 percent. The
ratio for native-born women increased to 55.7 percent, while the ratio for men changed little
at 63.6 percent. (See table 1.) 
 
Unemployment

From 2022 to 2023, the unemployment rate of the foreign born edged up to 3.6 percent, while
the jobless rate for the native born changed little at 3.6 percent. 

The jobless rate in 2023 for the foreign born remained higher than its pre-pandemic 2019
level (3.1 percent), while the rate for the native born was below its pre-pandemic level 
(3.8 percent). The unemployment rates for both foreign-born men and women changed little in
2023, at 3.5 percent and 3.8 percent, respectively. Among the native born, the rate for women
was down by 0.2 percentage point to 3.4 percent, while the rate for men was little changed at
3.9 percent. (See table 1.)

For both the foreign born and the native born, jobless rates vary considerably by race and
ethnicity. Among the foreign born, Hispanics had the highest unemployment rate in 2023 (4.1
percent), followed by Blacks (3.8 percent), Whites (3.2 percent), and Asians (2.8 percent).
Among the native born, jobless rates were highest for Blacks (5.9 percent), followed by 
Hispanics (5.1 percent), Asians (3.3 percent), and Whites (2.9 percent).

Occupation

In 2023, foreign-born workers were more likely than native-born workers to be employed in
service occupations (21.8 percent versus 15.0 percent); natural resources, construction, and
maintenance occupations (13.8 percent versus 7.8 percent); and production, transportation,
and material moving occupations (15.2 percent versus 11.8 percent). Foreign-born workers 
were less likely than native-born workers to be employed in management, professional, and 
related occupations (36.1 percent versus 45.4 percent) and in sales and office occupations
(13.0 percent versus 20.1 percent). (See table 4.)

Among employed men, the disparity was especially great in natural resources, construction,
and maintenance occupations--22.7 percent of the foreign born worked in this occupational
field in 2023, versus 14.0 percent of the native born. The occupational disparity for women
was pronounced in service occupations--30.5 percent of the foreign born worked in that 
occupation group, compared with 17.6 percent of the native born. By contrast, employed 
native-born men and women were more likely than their foreign-born counterparts to work in
management, professional, and related occupations and in sales and office occupations.

Earnings

In 2023, median usual weekly earnings of foreign-born full-time wage and salary workers
($987) were 86.6 percent of the earnings of their native-born counterparts ($1,140). Among
men, median weekly earnings for the foreign born ($1,051) were 84.9 percent of the earnings
of the native born ($1,238). Median earnings for foreign-born women ($899) were 87.7 percent
of the earnings of native-born women ($1,025). (See table 5.) (Differences in earnings 
reflect a variety of factors, including variations in the distributions of foreign-born and
native-born workers by educational attainment, occupation, industry, and geographic region.) 

Among the major race and ethnicity groups, Hispanic foreign-born full-time wage and salary
workers earned 83.6 percent as much as their native-born counterparts in 2023. White and 
Black foreign-born workers earned more than their native-born counterparts, by 12.7 percent
and 5.7 percent, respectively. Asian foreign-born workers earned slightly more (2.7 percent)
than their native-born counterparts.

The earnings of both foreign-born and native-born workers increase with education. In 2023,
foreign-born workers age 25 and over with less than a high school diploma earned $692 per
week, while those with a bachelor's degree and higher earned 2.4 times as much--$1,637 per 
week. Among the native born, those with a bachelor's degree and higher earned 2.1 times as 
much as those with less than a high school diploma--$1,602 per week versus $748 per week.

Native-born workers earn more than the foreign born at most educational attainment levels.
For example, among high school graduates (no college), full-time workers who are foreign 
born ($809) earned 88.0 percent as much as their native-born counterparts ($919) in 2023.
However, among those with a bachelor's degree and higher, the earnings of foreign-born 
workers ($1,637) were slightly higher than the earnings of native-born workers ($1,602).

Technical Note


   The estimates in this news release are based on annual average data from
the Current Population Survey (CPS). The CPS, which is conducted by
the U.S. Census Bureau for the Bureau of Labor Statistics (BLS), is a
monthly survey of about 60,000 eligible households that provides
information on the labor force status, demographics, and other
characteristics of the nation's civilian noninstitutional population
age 16 and over. In response to the increased demand for statistical
information about the foreign born, questions on nativity,
citizenship, year of entry into the United States, and the parental
nativity of respondents were added to the CPS beginning in January
1994. Prior to 1994, the primary sources of data on the foreign born
were the decennial census, two CPS supplements (conducted in April
1983 and November 1989), and, to some extent, information collected by
the U.S. Citizenship and Immigration Services (formerly known as the
Immigration and Naturalization Service).

   The foreign- and native-born data presented in this news release are not
strictly comparable with data for earlier years due to the introduction
of updated population estimates, or controls, used in the CPS. The
population controls are updated each year in January to reflect the
latest information about population change. Additional information is
available from the BLS website at www.bls.gov/cps/documentation.htm#pop.

   If you are deaf, hard of hearing, or have a speech disability, please
dial 7-1-1 to access telecommunications relay services

Reliability of the estimates

   Statistics based on the CPS are subject to both sampling and
nonsampling error. When a sample, rather than the entire population,
is surveyed, there is a chance that the sample estimates may differ
from the true population values they represent. The component of this
difference that occurs because samples differ by chance is known as
sampling error, and its variability is measured by the standard error
of the estimate. There is about a 90-percent chance, or level of
confidence, that an estimate based on a sample will differ by no more
than 1.6 standard errors from the true population value because of
sampling error. BLS analyses are generally conducted at the 90-percent
level of confidence.

   The CPS data also are affected by nonsampling error. Nonsampling
error can occur for many reasons, including the failure to sample a
segment of the population, inability to obtain information for all
respondents in the sample, inability or unwillingness of respondents
to provide correct information, and errors made in the collection or
processing of the data.

   Additional information about the reliability of data from the CPS
and estimating standard errors is available at
www.bls.gov/cps/documentation.htm#reliability.

Definitions

   Definitions of the principal terms used in this news release are
presented below.

   Foreign born. The foreign born are people residing in the United
States who were not U.S. citizens at birth. Specifically, they were born
outside the United States (or one of its outlying areas such as Guam or
Puerto Rico), and neither parent was a U.S. citizen. The foreign-born 
population includes legally-admitted immigrants, refugees, temporary 
residents such as students and temporary workers, and undocumented immigrants.
The survey data, however, do not separately identify the number of people 
in these categories.

   Native born. The native born are people born in the United States
or one of its outlying areas such as Puerto Rico or Guam or who were
born abroad of at least one parent who was a U.S. citizen.

   Race and ethnicity groups. In this news release, the data are presented
for non-Hispanic Whites, Blacks, and Asians and for people of
Hispanic or Latino ethnicity. These four groups are mutually exclusive
but not exhaustive. Other race groups (including people who selected
more than one race category) are included in the overall totals but
are not shown separately because the number of survey respondents is
too small to develop statistically reliable estimates. The presentation
of data on race and ethnicity in this news release differs from that
which appears in most analyses of CPS labor force data because people
of Hispanic or Latino ethnicity are separated from the race groups.
Because people of Hispanic or Latino ethnicity can be of any race,
they are usually included in the race groups as well as shown
separately in the Hispanic or Latino ethnicity group. The reason for
the difference in the data presentation in this news release is because
about half of the foreign born are of Hispanic or Latino ethnicity and
they have somewhat different labor force characteristics than the non-
Hispanic foreign born.

   Employed. Employed people are all those who, during the survey
reference week, (a) did any work at all as paid employees; (b) worked
in their own business, profession, or on their own farm; or (c) worked
15 hours or more as unpaid workers in a family member's business.
People who were temporarily absent from their jobs because of
illness, bad weather, vacation, labor dispute, or another reason also
are counted as employed.

   Unemployed. The unemployed are those who had no employment during
the reference week, were available for work at that time, and had made
specific efforts to find employment sometime during the 4-week period
ending with the reference week. People who were waiting to be
recalled to a job from which they had been laid off need not be
looking for work to be classified as unemployed.

   Civilian labor force. The civilian labor force comprises all
people classified as employed or unemployed.

   Unemployment rate. The unemployment rate is the number unemployed
as a percent of the civilian labor force.

   Labor force participation rate. The labor force participation rate
is the labor force as a percent of the population.

   Usual weekly earnings. Data represent earnings before taxes and
other deductions and include any overtime pay, commissions, or tips
usually received (at the main job in the case of multiple jobholders).
Earnings reported on a basis other than weekly are converted to a
weekly equivalent.

   Full-time wage and salary workers. These are workers who usually
work 35 hours or more per week at their sole or principal job and
receive wages, salaries, and other types of compensation. The group
includes employees in both the private and public sectors but, for
purposes of the earnings series, excludes all self-employed people,
regardless of whether or not their businesses are incorporated.

   Median earnings. The median earnings is the amount which divides a
given earnings distribution into two equal groups, one having earnings
above the median and the other having earnings below the median.