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Is the U.S. Workforace Increasingly Foreign?

We are a nation of immigrants. Virtually every U.S. resident (other than Native Americans, or American Indians) traces his or her roots to foreign ancestry – whether they are first, second, third or 30th generation. What is different in the 21st century, perhaps, from other eras in American immigration history, are the countries of origin and the skin colors of today’s foreign-born U.S. residents.

Why, then, is there clamoring from every facet of the political spectrum as well as many in the business community, about immigration reform? What else has changed in 2014? Historically speaking, not that much.

According to figures published by the Brookings Institute (a noted Washington think tank) and based on U.S. Census data, the sheer numbers of foreign-born individuals residing in the U.S. has risen steadily in the last three decades. However, percentagewise, they represent a smaller slice of the population in 2010 than s history.

What has evolved in the last 30 years is the nature of the U.S. economy; an increasing polarization of our political system; a rapidly aging population; and rising levels of inequality coupled with a diminishing middle class – which had formed the economic and social bedrock of 20th-century life in this country.

What’s more, we’re just coming out of the most severe economic downturn since the Great Depression. In countries and regions that were hit even harder than the U.S. and have been slower to recover – notably many members of the euro zone – politicians seize on people’s fears and economic insecurities and try to lay some of the blame for economic distress on foreigners; witness the strength of far-right candidates in France, Greece and other countries with stubbornly high rates of unemployment in recent elections. Students of history are all-too familiar with such trends.

Misperceptions about the U.S. foreign-born workforce

According to a report released last month by the U.S. Department of Labor (DOL), American-born workers do technically have a higher unemployment rate than those were born overseas.

By the same token, most foreign-born U.S. workers earn less than natives and work primarily in service jobs. This leads to claims, more commonly in conservative political circles, that “foreigners are stealing American jobs” and that a comprehensive program of immigration reform would reward outlaws.

Never mind that the (in theory) socially liberal Obama Administration has deported more than a million illegal aliens since the President took office; in an election year, immigration reform is likely dead in the water for now. However, it’s likely to resurface in a big way in the 2016 presidential election.

A closer look at the DOL figures shows that nearly half the foreign workforce (those born outside the country to non-U.S. citizens) are Hispanic and roughly a quarter are Asian, which is no surprise. An indeterminate number of the immigrants are on a path to citizenship, or may have become U.S. citizens since the figures were compiled, according to this The Wall Street Journal article.   

Historically, immigrant populations (particularly today’s Latino workers) tend to support the Democratic Party, which is another reason for the roadblock to passing legislation in Congress. Additionally, fully a third of foreign-born workers take service jobs in building maintenance, grounds cleaning or gardening and are paid less for jobs that many Americans don’t gravitate toward.

Most do not work in management or office jobs and many are paid off the books. Immigration reform that creates a solid path to citizenship would reunite separated family members here and overseas, and would help businesses by increasing the tax base.

Student immigration on the rise as well

Another component of the U.S. immigration question – and one that merits a separate discussion of its own – is the influx of highly educated and skilled workers in fields like technology, engineering and computer science.

The nature of the American economy and workforce has changed and the education levels and skill sets maintained by previous generations are, in many cases, now insufficient for a successful career in the United States in the technology age. The American education system (particularly our public schools) is failing our students by leaps and bounds, and higher education is becoming increasingly out of reach for middle-class kids. These factors are critical in our widening inequality gap. Even better-educated immigrants in service occupations tend to earn higher wages, according to the DOL figures.

Interestingly, a recent Wall Street Journal analysis of enrollment and recruitment at some of the nation’s top business schools is on the rise once again – and a foreign contingent of applicants has a lot to do with the increase, along with an improving economy and feelings of optimism about the future in U.S. business and job growth.

At the same time, the article finds that these elite institutions are actively recruiting and making the admissions process less onerous for international and minority students to help fill their classrooms. While American colleges and universities are becoming more diverse and attracting more international applicants in general, the spike in M.B.A.-program applications of late may say more about marketing initiatives than it does about immigration trends.

Where does that leave the business community and HR professionals in the face of a growing immigrant workforce of both U.S. and non-U.S. citizens?

For now, not much has changed. Employers need to be mindful of U.S. Government guidelines about making sure new hires are authorized to work legally in this country, as well as the risks of engaging non-documented workers. Here are some handy reminders of which most hiring managers are already well aware:

But, with immigration (legal and otherwise) on the rise and U.S. demographics rapidly changing and shifting to different parts of the country, the conversation about foreign-born workers is far from over; in many ways, it’s really just beginning.

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