Percentage of foreign born in U.S. workforce rises to 14.8

Foreign-born workers' share of the U.S. workforce continued to grow, the U.S. Department of Labor’s Bureau of Labor Statistics reported April 25. In 2006, foreign-born workers made up 15.3 percent of the U.S. civilian labor force age 16 and over, up from 14.8 percent in 2005. The unemployment rate for the foreign born fell for the third year in a row, to 4.0 percent in 2006. The jobless rate of the native born also continued to decline, decreasing from 5.2 to 4.7 percent over the year.

This news release compares the labor force characteristics of the foreign born with those of their native-born counterparts. The 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 persons who reside in the United States but who were born outside the country or one of its outlying areas to parents who were not U.S. citizens. The foreign born include legally-admitted immigrants, refugees, temporary residents such as students and temporary workers, and undocumented immigrants.

The survey data, however, do not separately identify the numbers of persons in these categories.

Demographic Characteristics
The demographic characteristics of the foreign-born labor force differ significantly in many respects from those of the native born. For example, men made up a larger proportion of the foreign-born labor force (60 percent) in 2006 than they did of the native-born labor force (53 percent). Also, a higher proportion of the foreign-born than the native-born labor force was made up of 25- to 54-year olds (76 and 67 percent, respectively); labor force participation is typically highest among persons in that age group.

In 2006, Hispanics comprised about 50 percent of the foreign-born labor force compared with about 7 percent of the native-born labor force. About 22 percent of the foreign-born workforce was Asian compared with about 1 percent of the native-born workforce. One in 5 persons in the foreign-born labor force was non-Hispanic whites, compared with nearly 4 of 5 in the native-born labor force. (Data in this release for persons who are white, black, or Asian do not include those of Hispanic or Latino ethnicity. Data on persons of Hispanic or Latino ethnicity are presented separately.)

About 28 percent of the foreign-born labor force 25 years old and older had not completed high school in 2006, compared with about 6 percent of the native-born labor force. About equal proportions of the foreign-born labor force and the native-born labor force had a bachelor's or higher degree (31 and 33 percent, respectively).

By region, the foreign born comprised 24.0 percent of the total labor force in the West, 17.9 percent in the Northeast and 13.5 percent in the South. By comparison, only 7.3 percent of the total labor force in the Midwest was foreign born.

Labor Force and Unemployment
Foreign-born workers' share of the U.S. civilian labor force reached 15.3 percent in 2006; this was up 0.5 percent from the prior year. About 23 million, or 68.6 percent, of the foreign born were in the labor force in 2006; that rate was nearly a percentage point higher than in 2005. The labor force participation rate of the native born was 65.8 percent in 2006 and was unchanged from the prior year. Over the year, the number of foreign-born labor force participants rose by 1.1 million; growth among this  group accounted for more than half of the total labor force increase in  2006. Since 2000, the foreign born have accounted for 47.3 percent of the net increase in the total labor force.

Foreign-born men were more likely to be labor force participants (81.7 percent) than their native-born counterparts (72.0 percent). In contrast, 55.3 percent of foreign-born women were labor force participants, compared with 60.0 percent of native-born women.

Foreign-born mothers with children under 18 were less likely to be labor force participants than native-born mothers – 59.7 vs. 73.5 percent. Among women with children under age 3, the participation rate for the foreign born was 45.9 percent, while that for the native born was 63.9 percent; both rates were up over the year. Foreign- and native-born fathers were about equally likely to be labor force participants (96 percent).

The unemployment rate of the foreign born declined from 4.6 percent in 2005 to 4.0 percent in 2006. Among the native born, the unemployment rate declined from 5.2 to 4.7 percent. The unemployment rate of the foreign born was lower than that of the native born for the second time since the annual data series was first tabulated in 1996. Over the year, the unemployment rate for foreign-born men declined from 4.1 to 3.5 percent, and the rate for foreign-born women declined from 5.4 to 4.7 percent.

Occupation
A smaller proportion of foreign-born than native-born workers was employed in management, professional, and related occupations, 26.4 vs. 36.4 percent. Foreign-born workers were more likely than their native-born counterparts to be employed in service occupations (22.5 vs. 15.4 percent); these included food preparation and serving related occupations and building and grounds cleaning and maintenance occupations. Foreign-born workers also were more likely than native-born workers to be employed in natural resources, construction, and maintenance occupations (16.5 vs. 10.0 percent), and in production, transportation and material moving occupations (16.7 vs. 11.9 percent).

Earnings
In 2006, the median usual weekly earnings of foreign-born full-time wage and salary workers were $532, compared with $698 for the native born. Among men, median earnings were $563 per week for the foreign born, compared with $782 for the native born; the median for foreign-born women was $502, compared with $611 for the native born. As with the native born, the earnings of foreign-born workers increased with education. Foreign-born workers 25 years of age and over with less than a high school education earned $396 per week in 2006, while those with bachelor's degrees and higher earned about 2.6 times as much – $1,024 a week.