Visual Essay: Foreign-born Workforce

48 Monthly Labor Review July 2006

Foreign-born workforce, 2004:

a visual essay

Abraham T. Mosisa

Visual Essay: Foreign-born Workforce

The foreign born are persons residing in the United

States who were not U.S. citizens at birth. That is,

they were born outside the United States or one of its

outlying areas such as Puerto Rico or Guam, to parents neither of whom was a U.S. citizen. The foreign-born population includes legally-admitted immigrants, refugees, temporary residents such as students and temporary workers, and

undocumented immigrants.

The native born are persons born in the United States or

one of its outlying areas such as Puerto Rico or Guam or who

were born abroad of at least one parent who was a U.S. citizen.

The data on nativity are collected as part of the Current

Population Survey (CPS). The CPS is a monthly survey of

about 60,000 households that obtains information on employment and unemployment among the Nation’s civilian noninstitutional population ages 16 and older.

All charts, with the exception of chart 3, are annual averages for 2004. This essay was prepared by Abraham T.

Mosisa, an economist in the Division of Labor Force Statistics,

Bureau of Labor Statistics. E-mail: Mosisa.Abraham@bls.gov

• The foreign born come from a multitude of countries. However, only

10 countries accounted for more

than half of the group’s population.

• People born in Mexico were by far

the largest foreign-born group in

the United States. They accounted

for 29.5 percent of the foreignborn population in 2004. The second highest contributor—the Philippines—accounted for just 4.2

percent.

• In 2004, 42.9 percent of the foreign

born came either from Mexico or

from countries in Central and South

America.

1. Ten countries accounted for more than 50 percent of the U.S.

foreign-born working age population

Mexico

Philippines

India

China

Cuba

El Salvador

Vietnam

South Korea

Dominican Republic

Canada

Other countries
 Monthly Labor Review July 2006 49

3. Since 1996, the proportion of the labor force that is foreign born

has risen dramatically

• Since 1996, the first year for which

comparable data are available, the

number in the labor force that is

foreign born increased from 10.8

percent (14.4 million) to 14.5 percent (21.4 million) in 2004.

• The increase in the foreign-born labor force accounted for about half

of the total labor force growth over

the same period.

Percent of civilian

labor force

1996 97 98 99 2000 01 02 03 04

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

NOTE: Estimates shown for 2000 and later years are based on Census 2000 population

controls and are not strictly comparable with estimates for years prior to 2000 which were

based on population controls derived from the 1990 census.

Percent of civilian

labor force

2. Nearly 15 percent of the U.S. labor force was composed of the

foreign born

• In 2004, there were 21.4 million foreign-born persons ages 16 years and

older in the U.S. labor force, composing 14.5 percent of the total.

• There were about 126.0 million native born in the workforce, and they

composed 85.5 percent of the total

labor force.

n

F

Native born

Foreign born
Visual Essay: Foreign-born Workforce

50 Monthly Labor Review July 2006

• About 49 percent of the foreignborn workforce was Hispanic in

2004. Just one out of five of the

foreign-born labor force was white

non-Hispanic.

• By comparison, nearly 80 percent

of the native-born labor force was

white non-Hispanic and 11.4 percent black non-Hispanic. Hispanics

composed 7.0 percent of the nativeborn workforce.

• Asians composed 22.1 percent of

the foreign-born workforce compared with only 1.2 percent of the

native-born workforce.

5. Nearly 50 percent of the foreign-born labor force was Hispanic,

while the native-born workforce was predominately white nonHispanic

Hispanic

White

non-Hispanic

Black

non-Hispanic

Asian

Hispanic

Black

non-Hispanic

White

non-Hispanic

Asian

Other

Other

Foreign born Native born

4. The foreign-born workforce had a higher share of 25- to 54-

year-olds than the native-born workforce

• The proportion of foreign born ages

25–54 was much larger than their

native-born counterparts—76.4 percent and 53.6 percent, respectively.

• In contrast, the share of native-born

workforce ages 55 and older was

larger than their foreign-born counterparts—29.6 percent versus 12.0

percent, respectively.

Percent Percent

 16 to 24 years

 25 to 54 years

 55 to 64 years

 65 years and older

Foreign born Native born

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90
 Monthly Labor Review July 2006 51

• About two in three of the foreignborn labor force lived in the West

(36.9 percent) and the South (30.3

percent) in 2004. Just 21.8 percent

lived in the Northeast, and only

11.0 percent in the Midwest.

• By comparison, 35.8 percent of

the native-born workforce lived in

the South and 25.4 percent in the

Midwest.

6. About 37 percent of the foreign-born labor force lived in the

Western region of the United States

Percent Percent

Foreign born

Native born

Northeast Midwest South West 

0

5

10

15

20

25

30

35

40

0

5

10

15

20

25

30

35

40

7. Foreign-born men were more likely than native-born men to be

in the labor force; for women, the opposite was true

Percent in

labor force

Percent in

labor force

• The labor force participation rate of

foreign-born persons ages 16 years

and older was 67.5 percent, a little

higher than the 65.7 percent participation for the native born in 2004.

• Foreign-born men (81.1 percent)

were considerably more likely to be

labor force participants than their

native-born (72.0 percent) counterparts. In contrast, foreign-born

women were less likely than their

native-born counterparts overall to

be working or looking for work,

53.8 percent versus 60.0 percent,

respectively.

Foreign born

Native born

Total Men Women

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90
Visual Essay: Foreign-born Workforce

52 Monthly Labor Review July 2006

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90

8. Foreign-born mothers were less likely to be labor force

participants than were native-born mothers

Percent Percent

Total, with

children under

18 years

• The size of the difference between

foreign- and native-born mothers’

participation rates varied by age of

youngest child.

• The difference was largest for

mothers whose youngest child was

under 3, 42.6 percent of foreign

born were in the labor force, compared with 61.4 percent for the native born—nearly a 19-percent gap.

• The difference was smallest for

mothers whose youngest child was

6–17 years old, 68.7 percent of foreign born were labor force participants compared with 79.0 percent

for native born—a 10.3-percent

gap.

With children

6–17 years,

none younger

With children

under

6 years

With children

under

3 years

Foreign born

Native born

• The labor force participation rates

of foreign-born blacks, Asians, and

Hispanics were higher than those of

their native-born counterparts.

However, foreign-born whites were

less likely to be in the labor force

than their native-born counterparts.

• The difference in participation rates

between the foreign-born and the

native-born whites was at least

partly because foreign-born whites

were older on balance (37.1 percent

were 55 years and older) than native-born whites (only 32.2 percent

were 55 years and older). Labor

force participation falls dramatically after age 55.

9. Except among white non-Hispanics, the foreign born had higher

labor force participation rates than the native born

Percent Percent

White

non-Hispanic

Black

non-Hispanic

Asian

non-Hispanic Hispanic

Foreign born

Native born

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90
 Monthly Labor Review July 2006 53

10. The least educated foreign born were far more likely than

their native-born counterparts to be labor force participants

Participation

rates

Participation

rates

Less than a

high school

diploma

• The foreign born ages 25 years and

older who had not completed high

school were much more likely to be

labor force participants than the

native born with that level of education, 60.8 percent and 37.7 percent, respectively, in 2004. The participation rate for the foreign born

was also higher than that for the native born among high school graduates who did not attend college.

• At the upper end of the educational

scale, however, the participation

rate for foreign-born college graduates at 76.1 percent was little different from that for the native

born—78.2 percent.

High school

graduates,

no college

Some college,

no degree

College

graduates

Foreign born

Native born

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90

• Foreign-born workers were more

likely than native-born workers to

be employed in service occupations

(22.8 percent versus 15.2 percent);

in natural resources, construction,

and maintenance occupations (14.7

percent versus 9.7 percent); and in

production, transportation, and material moving occupations (17.5

percent versus 12.1 percent).

• Native-born workers were more

likely than foreign-born workers to

be in managerial-professional occupations and in sales jobs in 2004.

11. Foreign-born workers were less likely to be in managerialprofessional occupations and more likely to be in service

occupations than native-born workers

Percent Percent

Management,

professional,

and related

occupations

Service

occupations

Sales and

office

occupations

Natural

resources,

construction,

and maintenance

occupations

Production,

transportation,

and material

moving

occupations

Foreign born

Native born

0

5

10

15

20

25

30

35

40

0

5

10

15

20

25

30

35

40
Visual Essay: Foreign-born Workforce

54 Monthly Labor Review July 2006

12. Among full-time wage and salary workers, overall, the foreign

born earned about 75.6 cents for every dollar earned by

native born in 2004

Total, 16 years

and older

• In 2004, the median usual weekly

earnings of foreign-born full-time

wage and salary workers was $502

compared with $664 for their native-born counterparts.

• Foreign-born men earned about 70

percent as much as native-born men

per week ($518 compared with

$749, respectively). Women’s

earnings were much lower for both

groups, and foreign-born women

earned about 80 percent as much as

native-born women ($473 compared with $585, respectively).

Men Women

Median weekly earnings

of full-time workers

Median weekly earnings

of full-time workers

Foreign born

Native born

100

200

300

400

500

600

700

800

100

200

300

400

500

600

700

800

• Foreign-born workers ages 25 years

and older earned less than their native-born counterparts at all education levels. The gap was largest

among those with only a high

school diploma—the foreign born

earned 82 percent as much as the

native born—and smallest among

college graduates (95 percent).

• Earnings of both the foreign and the

native born increased with education. For example, in 2004, the foreign born ages 25 years and older

with less than a high school education earned $373 per week; earnings

of those with college degrees were

2.5 times higher—$943 a week.

• The foreign born earned less than

the native born partly because foreign born are younger on balance

than the native born. Skilled older

workers usually earn more than

less-experienced younger workers.

13. At all education levels, the median weekly earnings of the

foreign born who work full time were less than those of their

native-born counterparts in 2004

Median weekly earnings of

full-time workers

Less than a

high school

diploma

High school

graduates,

no college

Some college,

no degree

College

graduates

Median weekly earnings of

full-time workers

Foreign born

Native born

100

200

300

400

500

600

700

800

900

1,000

1,100

100

200

300

400

500

600

700

800

900

1,000

1,100
 Monthly Labor Review July 2006 55

14. The foreign born were about as likely to be unemployed as

the native born

• Overall, the unemployment rates of

the foreign born and the native born

were the same in 2004, 5.5 percent.

• The unemployment rate of foreignborn men was lower than that for

the native-born men, 5.0 percent

and 5.8 percent, respectively.

Among women, however, the jobless rate of the foreign born was 6.3

percent, compared with 5.3 percent

for the native born.

Unemployment

rate

Unemployment

rate

Foreign born

Native born

Total Men Women

0

2

4

6

8

0

2

4

6

8