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Recent Immigration Wave Reshapes US Labor Force Demographics
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By News
Published 9 months ago on
September 4, 2024

Recent immigration surge adds millions to U.S. workforce, reshaping labor market dynamics and sparking economic debates. (Shutterstock)

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The U.S. has had a significant surge in immigration since 2021, with an estimated 9.3 million people entering the country, according to the Congressional Budget Office.

The influx, as reported by The Wall Street Journal, is more than triple the number of immigrants during the previous four years.

The majority of these newcomers, about 6.5 million, are categorized as “other foreign nationals,” many of whom crossed the southern border without prior authorization and requested asylum. While awaiting court dates, many of these immigrants have joined the workforce.

Demographics of Recent Immigrants

Census Bureau data suggests that recent immigrants are predominantly younger and more likely to be of working age compared to U.S.-born Americans. “Of foreigners who arrived since 2020, 78% are between the ages of 16 and 64, compared with 60% of those born in the U.S.,” the article states.

The labor force participation rate for recent immigrants is 68%, higher than the 62% for U.S.-born Americans. This influx has added an estimated five million people to the labor force, equivalent to about 3% of the total.

Most recent immigrants come from Latin America and the Caribbean, with Venezuela, Mexico, and Honduras being the top countries of origin. They are settling across the country, with Florida, Texas, California, New York, and New Jersey being the top destinations.

Skills and Education of New Arrivals

While many recent immigrants are ready to work, they often lack high-level skills. The data shows they are more than twice as likely to lack a high school diploma compared to U.S.-born workers. However, they are slightly more likely to hold a bachelor’s degree or higher.

The surge in immigration has sparked debates about its economic impact. While it may put downward pressure on wages in the short term, the CBO suggests that over time, as migrants gain experience and those with college degrees contribute to innovation, the economic benefits become more apparent.

Read more at The Wall Street Journal

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