The strong labor market has been bolstered post-pandemic by the strength of the immigrant workforce in the United States. And as Americans fall out of the workforce and birth rates remain low, economists and the Federal Reserve are touting the importance of immigrant workers to overall future economic growth.
Immigrant workers made up 18.6% of the workforce last year, a new record, according to data from the Bureau of Labor Statistics. Workers are taking vacant positions in agriculture, technology and health care, fields where labor supply has been a challenge for those looking to hire.
Even though the United States added fewer jobs than expected in April, the labor force participation rate of foreign-born workers rose slightly, to 66%.
“We don't have enough workers participating in the workforce and our birth rate fell 2% last year between 2022 and 2023… These people are not taking jobs. They are helping to reinforce and help us rebuild… they are adding workers needed in the workforce,” said Jennie Murray, executive director of the National Immigration Forum, a nonprofit, nonpartisan advocacy organization.
The influx of immigrant workers is also a projected boost to American manufacturing, and is expected to increase gross domestic product over the next decade by $7 trillion, Congressional Budget Office Director Phillip Swagel said in a statement. February accompanying the CBO outlook for 2024-2034.
“The labor force in 2033 will increase by 5.2 million people, primarily due to greater net immigration. As a result of those changes in the labor force, we estimate that, from 2023 to 2034, GDP will be higher by approximately $7 trillion. dollars and incomes will be higher by about $1 trillion than they would otherwise have been. We continue to evaluate the implications of immigration for incomes and spending,” Swagel wrote.
'Great competition'
Goodwin Living, a nonprofit faith-based senior care facility in Northern Virginia that serves 2,500 adults daily, relies heavily on immigrant workers. About 40% of its 1,200 workers are foreign-born and represent 65 countries, according to CEO Rob Liebreich, and more workers will be needed to fill growing gaps as Americans age and need help.
“About 70% of 65-year-olds are expected to need long-term care in the future. We need a lot of hands to meet those needs,” Liebreich told CNBC. “Right now, one of the best ways we see to find it is through people who come from other countries, our global talent, and there is great competition for them.”
In 2018, Goodwin launched a citizenship program that provides financial resources, mentoring and mentoring for workers seeking to obtain U.S. citizenship. So far, 160 workers and 25 of their family members have obtained citizenship or are in the process of doing so through Goodwin.
Wilner Vialer, 35, started working at Goodwin four years ago and serves as the environmental services team leader, setting up and cleaning rooms. Vialer, who came to the United States 13 years ago from Haiti, lost his job during the pandemic and was given an opportunity at Goodwin because his mother had worked at the facility.
He applied for U.S. citizenship before landing his current job, but after working there for six months, the Goodwin Living Foundation covered the $725 application fee, the nonprofit said. Vialer became a U.S. citizen in 2021 and her 15-year-old daughter received a citizenship grant and became a U.S. citizen in 2023.
Vialer's hope is that his wife will join the family from Haiti since they have been separated for six years.
“This program is a good opportunity,” Vialer said. “They help me, I have a family at home… This job really [does] Support me when I get my paycheck to help them at home.”
Workers are not required to stay at Goodwin after becoming U.S. citizens, but those who do stay there stay there 20% longer than those who do not participate in the program, Liebreich said. Accelerating the path to citizenship is key to remaining competitive in a global economy, she added.
“If we want to attract and retain this global workforce, which we desperately need, we need to make the process much easier,” Liebreich said.
Heading into November, immigration will be a hot topic in the presidential campaign and for voters. Both President Joe Biden and former President Donald Trump have made trips to the southern border in recent months to address the large number of migrants entering the country.
