The U.S. labor market has seen a significant shift since the start of the Trump administration in January 2025, with 1.1 million foreign-born workers leaving employment, according to the latest Bureau of Labour Statistics (BLS) Household Survey.
This decline represents roughly 3–4% of the total foreign-born workforce and underscores the growing impact of recent policy and economic changes on immigrant labor participation. Foreign-born workers make up approximately 17% of the U.S. workforce, and their sudden drop could have far-reaching effects on industries reliant on immigrant labor.
Analysts point to several reasons behind the decline:
- Employment Displacement: Policy shifts, stricter enforcement, and economic pressures may have led to layoffs or reduced job security for foreign-born workers already in the workforce.
- Sectoral Pressures: Industries with high immigrant employment—such as hospitality, agriculture, construction, and technology—have faced automation, outsourcing, and trade-related disruptions, disproportionately affecting foreign-born workers.
- Voluntary Exits: Some foreign-born workers may have returned to their home countries or exited the labor market due to uncertainty, immigration enforcement concerns, or social pressures.
Economic and Social Implications
The decline in foreign-born employment could exacerbate labor shortages in key industries, potentially pushing wages higher and increasing operational costs for employers. It may also impact household incomes and consumer spending in communities heavily reliant on immigrant labor.
While overall U.S. employment continues to show growth, the reduction in foreign-born workers highlights the vulnerability of immigrant labor to policy and economic shifts. Experts caution that this trend could shape debates on labor supply, immigration policy, and economic strategy in the coming years.
Without strategic interventions, the U.S. may face challenges in maintaining productivity and economic stability in industries dependent on foreign-born workers.
