IMMIGRANTS IN THE U.S. LABOR FORCE: CBO Report Underscores Diverse Contributions of Foreign-Born Workers

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1 IMMIGRANTS IN THE U.S. LABOR FORCE: CBO Report Underscores Diverse Contributions of Foreign-Born Workers August 4, 2010 A recent report from the Congressional Budget Office (CBO) underscores not only the diversity of the foreign-born labor force in the United States, but also the myriad roles that immigrant workers play in the U.S. economy. 1 The report, which analyzes data from the Current Population Survey, finds that 15.5 percent of the U.S. labor force was foreign-born in, up slightly from 14.5 percent in Moreover, immigrant workers and their native-born counterparts differ significantly in terms of occupation and education, as well as where in the country they live. As other, more detailed analyses have confirmed, this suggests that immigrants and natives are filling different niches in the U.S. labor market and are therefore not in direct competition with each other for most jobs. 3 Nearly one-third of immigrant workers are from Mexico, and more than one-quarter from Asia. According to the CBO s analysis, nearly one-third (32.0 percent) of all foreign-born workers were from Mexico as of, while more than one-quarter (26.2 percent) came from Asian countries {Figure 1}. 4 One-in-nine foreign-born workers (11.8 percent) were from Europe and Canada in, while onein-eleven (9.3 percent) came from the Caribbean {Figure 1}. 5 Figure 1: Foreign-Born Labor Force by Place of Birth, Other, 0.8% Africa, 4.5% South America, 7.0% Central America, 8.3% Mexico, 32.0% Caribbean, 9.3% Europe & Canada, 11.8% Asia, 26.2% Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table G STREET, NW WASHINGTON, DC TEL: (202) FAX: (202)

2 Immigrant and native-born workers differ in their occupational profiles. The top occupation for foreign-born workers age was construction and extraction in, accounting for 8.8 percent of the total foreign-born labor force, followed by production occupations (8.7 percent); building and grounds cleaning and maintenance (8.5 percent); and sales (8.4 percent) {Figure 2}. 6 Figure 2: Top 10 Occupations of Foreign-Born Workers, Age 25-64, Personal Care & Service, 4.5% Health Care Practicioner & Technical, 5.4% Food Preparation & Serving, 7.4% Construction & Extraction, 8.8% Production, 8.7% Transportation & Material Moving, 7.5% Office & Administrative Support, 7.8% Management, 8.2% Building & Grounds Cleaning & Maintenance, 8.5% Sales, 8.4% Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 7. The top occupation for native-born workers age was office and administrative support in, accounting for 13.8 percent of the total native-born labor force, followed by management (12.9 percent); sales (10.5 percent); and education, training, and library occupations (7.0 percent) {Figure 3}. 7 Figure 3: Top 10 Occupations of Native-Born Workers, Age 25-64, Installation, Maintenance & Repair, 3.8% Construction & Extraction, 4.9% Business & Financial Operations, 5.0% Production, 5.2% Office & Administrative Support, 13.8% Transportation & Material Moving, 5.5% Health Care Practicioner & Technical, 6.1% Education, Training & Library, 7.0% Sales, 10.5% Management, 12.9% Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 7. 2

3 Immigrant and native-born workers differ significantly in their educational profiles. 30 percent of native-born workers age 25+ had some college education short of a bachelor s degree in, compared to only 17 percent of foreign-born workers {Figure 4}. 8 More than one-quarter (27 percent) of foreign-born workers age 25+ lacked a high-school diploma in, compared to only 6 percent of native-born workers {Figure 4} % 90% 80% 70% 60% 50% Figure 4: Educational Attainment of U.S. Labor Force, Age 25+, by Nativity, 12% 12% 23% 19% 17% Graduate Courses or Degree Bachelor's Degree Only Some College 40% 25% 20% 10% 0% 6% Native-Born 27% Foreign-Born High-School Diploma Only No High-School Diploma Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 4. Immigrant workers from Asia, Europe, Canada, and Africa are the most educated. On average, native-born workers had 13.9 years of education in, compared to 12.5 years for foreign-born workers as a whole {Figure 5}. 10 Asian immigrant workers had the most years of education (14.8), followed by European and Canadian immigrants (14.7 years), African immigrants (14.3 years), and South American immigrants (13.5) {Figure 5} Figure 5: Average Years of Education Completed, Native-Born & Foreign-Born Labor Force, by Place of Birth, Native-Born All Foreign- Born Asia Europe & Canada Africa South America Caribbean Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 2. Mexico & Central America 3

4 Most immigrant and native-born workers live in different states. 62.5% of foreign-born workers lived in only six states in : California, New York, Florida, Texas, New Jersey, and Illinois {Figure 6}. In comparison, only 34.6 percent of native-born workers lived in those states {Figure 7}. 12 Figure 6: Geographic Distribution of Foreign-Born Labor Force, All other states 33.3% CA, NY, FL, TX, NJ, IL 62.5% Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 3. Figure 7: Geographic Distribution of Native-Born Labor Force, CA, NY, FL, TX, NJ, IL 34.6% All other states 66.2% Source: Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 3. 4

5 Endnotes 1 Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July Ibid., p Rob Paral & Associates, Untying the Knot (Parts I, II & III) (Washington, DC: Immigration Policy Center, American Immigration Law Foundation, ). 4 Congressional Budget Office, The Role of Immigrants in the U.S. Labor Market: An Update, July 2010, Table 2. 5 Ibid. 6 Ibid, Table 7. 7 Ibid. 8 Ibid., Table 4. 9 Ibid. 10 Ibid., Table Ibid. 12 Ibid., Table 3. 5