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Immigration Surge Reshapes U.S. Jobs Market

Immigration Surge Reshapes U.S. Jobs Market

A surge in both legal and illegal immigration under the Biden-Harris administration is significantly reshaping the U.S. job market. While the increase in immigrant workers has helped ease labor shortages, it has also raised the unemployment rate among foreign-born workers and the general workforce.

According to the Congressional Budget Office (CBO), the U.S. has gained more than 9 million immigrants since 2020. Of these, about 2.6 million are lawful permanent residents, while the remaining 6.5 million are unauthorized immigrants, primarily from those crossing the southern border. The CBO expects this number to rise to 8.7 million by 2026.

As of 2023, nearly 30 million foreign-born workers were employed in the U.S., representing about 23% of the workforce. This influx of labor, especially from younger, less-educated migrants, has raised concerns about wage pressure in low-skilled jobs.

Despite these concerns, immigrants contribute by paying federal and state taxes, helping to reduce the federal deficit. However, increased immigration also raises local government spending, especially in areas like education and healthcare. For example, New York City spent $4.3 billion from mid-2022 to early 2024 to accommodate immigrants.

Wages for immigrants typically start lower than those of similarly educated U.S. workers but gradually rise over time. While the immigration surge has slightly slowed wage growth for less-educated workers, it is expected to boost productivity and increase demand for more highly educated workers in the long run.

The overall unemployment rate has seen little change due to immigration, though it has fluctuated recently, with the unemployment rate rising to 4.2% in August. Meanwhile, U.S. private sector job growth has slowed, with only 99,000 jobs added in August, falling short of expectations.

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