The Impacts of Immigration on the Labor Participation Rate
During the Biden administration there was a lot of bragging about the employment rate. The real truth followed later with new numbers most often revised downward. The revisions were buried in the news and the corrections rarely got the same reporting emphasis that the first rosy reports included. This subtle method of keeping the American public mal-informed made it hard to question public policy that drives the labor participation rate.
The results of a 2025 household survey was just released reflecting statistical information that paints a grim picture of the immigration wave with open borders and illegal immigrants streaming into our country.
When analyzed through the lens of American males of the working age between the ages of 16 and 64 and illegal immigrants of similar ages, the numbers tell a compelling story. Bottom line, 88% or 4.7 million jobs of all employment growth over the last 5 years went to immigrants, and 60% of employment growth among immigrants went to illegal workers. This deleterious effect on American men being able to find jobs is one of the reasons along with public safety that illegal immigration was such a big issue in the 2024 election.
Here is the labor force data (year over year change):
January 2021
-6,863,000 Americans working
-1,748,000 immigrants working
January 2022
-2,288,000 Americans working
-912,000 immigrants working
January 2023
+82,000 Americans working
+1,626,000 immigrants working
January 2024
+645,000 Americans working
+4,7000,000 immigrants working
The level of immigration masked the deteriorated economic mobility of millions of Americans. The downstream effects of low labor force participation can be eviscerated by good public policy, but one that should put Americans first when it comes to jobs. Having a job contributes to the overall well-being of workers and reduces crime and the despair that have been plaguing American workers who have been unable to find employment.
Between January 2020, before Covid or the immigration surge, and January 2025, total increased employment went to immigrants. The share of working age (16-64) US born men not in the labor force, who are neither working or looking for a job, remains at an historic high and impacts our ability to expand economically.
The long term increases in men not in the labor force result in profound social problems such as crime and overdose deaths affecting otherwise employable young American men.
Bringing in so many illegal immigrants reduces job prospects for American men. Relying on immigrants to fill jobs allows employers and policy makers to ignore the enormous problems such policies create.
Congress is again debating the H1-B visa program that is considering renewal of the limit of 55,000 visas or green cards. The problem is that these green cards, when issued, become the first link to chain migration and it is questionable whether they actually help to satisfy our nation’s employment needs. These selective quota-driven visas do not take into account the large number of American men who are not in the labor force. It does not motivate employers to establish training programs for American workers because they will most likely cost more to employ. It also does not put pressure on our education system to educate workers so that they have skills needed for employment. Since our public education system puts Americans in the bottom quartile, the lack of basic education or elevated skills that are employment-based fail to prepare young Americans for employment.
There has been reluctance by some employers to use E-Verify to determine a job applicant’s eligibility. Refusing to use this tool allows some employers to keep their labor costs low while employing illegal immigrants who are hungry for a job in America. Economic standards in many of the third-world countries make even the low pay illegal immigrants are offered seem attractive.
It is startling to see the huge impact of the employment of illegal and other immigrants on job opportunities for American men. We can easily cure this imbalance by offering education and training in needed skills as part of public and private education. We should provide the tools for American men to become fully trained and prepared so that they can obtain gainful employment as part of economic expansion. This is just one more way that the economy will improve but it will take policy makers making the right decisions to reduce this imbalance and put America first.