THE ECONOMIST: Come from away

The foreign-born population is an indispensable component of the U.S. workforce. Many regions are experiencing slowing population growth or even shrinkage in key working age ranges, as the baby boom generation retires and fertility rates fall. This pattern will only get worse if we fail to act.

Unauthorized immigration, primarily from Central America, has generated a humanitarian crisis along much of the southern border in recent years. Much of this influx is the result of famine and violence in their home countries and is difficult to address through traditional policy mechanisms. Obviously, it is crucial to maintain border security, but responsible immigration of workers at all skill levels is equally vital.

In many geographic areas and occupations, job openings exceed unemployed persons by a substantial margin. Without the foreign-born workforce, economic growth would be significantly constrained. In key industries, such as construction trades, immigrants comprise 30-40% of the workforce, with some individual occupations near 65%. While some immigrants hold low-skill jobs in sectors such as agriculture, maintenance, and hospitality, many foreign-born residents are highly skilled professionals such as physicians, engineers, scientists, and nurses. Even among undocumented workers, almost 75% are in jobs classified as essential (a slightly greater proportion than the labor force as a whole).

The U.S. Census Bureau provides estimates of foreign-born individuals, which refers to anyone answering the Census who was not a U.S. citizen at birth. The estimates include naturalized U.S. citizens, lawful permanent residents, asylum seekers, students, and unauthorized migrants. Although the information is collected irrespective of legal status, it is likely that the estimates tend to undercount undocumented immigrants due to a potential reluctance to participate.

About 46.2 million foreign-born individuals resided in the United States as of 2022, representing approximately 14% of the total population of 333.3 million persons. Over 24.5 million of these individuals were naturalized U.S. citizens (53% of foreign born and 7% of the total U.S. population), while 21.7 million were not. Latin America and Asia were the most common regions of origin. For Texas, the 2022 foreign-born population was 5.2 million (17%) of the state total of about 30 million persons. About 43% were naturalized citizens, and 65% were from Latin America.

Foreign-born workers are a key aspect of both current economic vitality and future expansion. The math is simple. The Congressional Budget Office projects that net immigration will account for all population growth in the U.S. by 2040, while the demand for workers will continue to increase. In other words, we are not adding nearly enough people to meet the requirements of a growing economy. Sensible immigration policies which enable and encourage people to legally live and work in the U.S. will enhance prosperity for everyone. Stay safe!