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Labor Force Characteristics of Foreign-Born Workers in 2008
added: 2009-03-27

In 2008, 24.1 million persons, or 15.6 percent of the U.S. civilian labor force age 16 and over, were foreign born, the Bureau of Labor Statistics of the U.S. Department of Labor reported. The unemployment rate for the foreign born was 5.8 percent in 2008, up from 4.3 percent in 2007. The jobless rate of the native born also increased to 5.8 percent in 2008; it was 4.7 percent in the prior 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 from those of the native born. In 2008, men made up a larger proportion of the foreign-born labor force (59.8 percent) than they did of the nativeborn (52.3 percent) labor force. Also, a higher proportion of the foreignborn than the native-born labor force was made up of 25- to 54-year-olds (76.6 and 66.0 percent, respectively); labor force participation is typically highest among persons in that age group.

In 2008, Hispanics comprised 49.4 percent of the foreign-born labor force compared with 7.8 percent of the native-born labor force. Asians made up 22.4 percent of the foreign-born labor force compared with 1.3 percent of 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.)

In terms of educational attainment, 26.4 percent of the foreign-born labor force 25 years old and over had not completed high school in 2008, compared with 5.8 percent of the native-born labor force. Similar proportions of foreign-born and native-born persons in the labor force had a bachelor's or higher degree (31.7 and 34.6 percent, respectively). Foreign-born workers were less likely than native-born workers to have some college or an associate degree.

Labor Force and Unemployment

In 2008, 68.1 percent of the foreign born were in the labor force, 0.4 percentage point lower than in 2007. The labor force participation rate of the native-born workers held steady at 65.6 percent in 2008. Both the number of foreign-born labor force participants (24.1 million) and their share of the U.S. civilian labor force (15.6 percent) were little changed from 2007 to 2008.

The labor force participation rate of foreign-born men was 81.4 percent, compared with 71.4 percent for native-born men in 2008. In contrast, 54.8 percent of foreign-born women were labor force participants, compared with 60.3 percent of native-born women.

Among the major race and ethnicity groups, labor force participation rates of foreign-born whites (60.3 percent) and Hispanics (70.7 percent) were down over the year. The rates for foreign-born blacks (73.2 percent) and Asians (68.2 percent) showed little change in 2008. Among the native born, labor force participation rates for all the major groups were about unchanged over the year.

Foreign-born mothers with children under age 18 were less likely to be labor force participants than native-born mothers--60.7 versus 74.1 percent. Among women with children under age 3, the participation rate for the foreign born was 44.6 percent, while that for the native born was 64.5 percent. The labor force participation rate of both foreign- and native-born fathers with children under age 18 was about 94 percent in 2008.

The over-the-year increase in the unemployment rate of foreign-born workers - from 4.3 percent in 2007 to 5.8 percent in 2008 - reflected increases in the rates for both men and women. The unemployment rate for foreign-born men rose from 4.1 to 5.7 percent, and the rate for foreign born women was up from 4.6 to 6.0 percent. Among the native born, the unemployment rate increased from 4.7 to 5.8 percent over the year. The rate for men rose from 4.9 to 6.2 percent, while the rate for women was up from 4.5 to 5.3 percent in 2008.

By region, the foreign born made up a larger share of the total labor force in the West (24.1 percent) and in the Northeast (17.9 percent) than for the nation as a whole (15.6 percent). In contrast, the shares of the labor force made up by foreign-born workers in the South (13.8 percent) and Midwest (7.8 percent) were less than for the nation.

Occupation

In 2008, foreign-born workers were more likely than their native-born counterparts to be employed in service occupations (23.2 versus 15.6 percent); in production, transportation, and material moving occupations (16.4 versus 11.5 percent); and in natural resources, construction, and maintenance occupations (15.1 versus 9.3 percent). In contrast, native-born workers were more likely than foreign-born workers to be employed in management, professional, and related occupations - 37.8 versus 28.2 percent.

Foreign-born men were more likely than native-born men to be employed in service occupations; natural resources, construction, and maintenance occupations; and production, transportation, and material moving occupations. Compared with native-born women, foreign-born women were more likely to be employed in service occupations and in production, transportation, and material moving occupations.

Earnings

In 2008, the median usual weekly earnings of foreign-born full-time wage and salary workers were $595, compared with $744 for the native born. Among men, median earnings were $613 per week for the foreign born, compared with $842 for the native born; the median for foreign-born women was $557, compared with $651 for the native born.

As with the native born, the earnings of foreign-born workers increased with education. Foreign-born workers age 25 and over with less than a high school education earned $417 per week in 2008, while those with bachelor's degrees and higher earned about 2.6 times as much - $1,092 a week. The gap between the earnings of foreign-born and native-born workers narrows with higher levels of education. For example, among those with less than a high school diploma, full-time workers who were foreign born earned 84.6 percent as much as their native-born counterparts. Among those with a bachelor's degree and higher, foreign born workers earned almost as much (97.6 percent) as native-born workers.


Source: U.S. Department of Labor

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