Foreign-Born Worker Unemployment Rate Compared to Native-Born Citizens

Recent data from the U.S. Department of Labor shows a slight difference in unemployment trends between foreign-born workers and native-born counterparts in America's labor market.

While both groups experienced a rise in unemployment, the rate for foreign-born workers increased by 0.1 percent, whereas native-born workers saw a slightly higher increase of 0.3 percent

Despite overall economic resilience, this difference reflects the diverse conditions within America's labor market.

Why It Matters

The labor market acts as a microcosm of broader economic and social trends, reflecting underlying disparities and opportunities within the workforce.

The difference in impact gleaned from these reports, in this case on foreign-born and native-born workers, can provide valuable insights for policymakers, business leaders, nonprofit organizations and more.

What To Know

According to the U.S. Bureau of Labor Statistics, from January 2024 to January 2025, the unemployment rate for foreign-born workers slightly increased from 4.5 percent to 4.6 percent, while that for native-born citizens rose from 4.0 percent to 4.3 percent.

Interestingly, during the same period, the employment-population ratio for foreign-born workers edged up by 0.2 percent, indicating a minor growth in employment among this group despite a rise in unemployment.

As more foreign-born individuals entered the labor market, driven possibly by improved job prospects or economic necessity, the number of those employed rose. However, the increase in the labor force also led to a slight uptick in unemployment rates, as not all new entrants found jobs immediately.

For native-born workers, the scenario was different. Their employment-population ratio saw a slight decline of 0.2 percent, suggesting that fewer within this group were employed in January 2025 compared to a year earlier, reflecting broader economic shifts or possibly transitions out of the workforce.

Currently, the U.S. as a whole is experiencing a relatively stable unemployment rate, with a recent U.S. Bureau of Labor Statistics report indicating a slight decrease to 4.0 percent—the lowest rate since this past May, per Bankrate senior economic analyst Mark Hamrick.

What People Are Saying

Mark Hamrick, senior economic analyst at Bankrate, said in a statement: "At a time of high uncertainty and volatility, the job market is providing some reassurance, at least for now."

Fed Chair Jerome Powell said at a January 29 press conference: "It's a low-hiring environment. So if you have a job, it's all good, but... if you have to find a job, the job-finding rate—the hiring rates have come down."

Gregory Daco, chief economist at EY-Parthenon, told The New York Times: "We have what I would describe as a robust but frozen labor market... The unemployment rate is historically low, but frozen in the sense that you're not seeing much churn; businesses are being cautious as to how they manage their work force."

What Happens Next

With the Federal Reserve eyeing the next round of economic data before its March decision on interest rates, the nuances of employment trends will play a role in shaping economic policy and forecasts.