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The Typical Immigrant in the US Is a Young Man and Earns Under $40,000

  • The number of foreign-born workers in the United States has increased in recent years.
  • Supporters of the project say they have boosted the economy – critics have pointed to the border crisis.
  • Recent immigrants typically work in construction or food service and earn less than $40,000 a year.

Nearly three million more Americans are working than in January 2020, but the number of U.S.-born workers has barely budged.

This means that immigrants, particularly foreign-born workers, are responsible for most of the U.S. job growth in recent years. The share of foreign-born workers in the U.S. workforce increased from 16.8% in January 2020 to 19.3% in March 2024, according to a Business Insider analysis of Bureau of Labor Statistics data.

Immigration supporters say these new arrivals have given a huge boost to the U.S. economy and have not taken Americans’ jobs. a common argument made by those who oppose immigration. As many baby boomers reach retirement age and young people have fewer children than before, immigration may be the best way to maintain and grow the U.S. workforce.

However, some argue that immigrants are actually taking jobs from Americans, in addition to driving down wages and contributing to rising housing prices. Many also have broader concerns about how some immigrants arrive in the United States. Last December, illegal border crossings from Mexico resulted in a record number of arrests, and cities like New York and Chicago are struggling to accommodate the influx of migrants into their cities.

Who are these immigrant workers who have come to the United States in recent years? They are likely young men, working in one of three industrial sectors, earning less than $40,000 a year and living in one of four states, according to a Goldman Sachs report released in April and based on a analysis of government data.

The typical recent immigrant is more likely than the U.S.-born population to have a college degree

Goldman Sachs report largely highlights recent rise in immigration in the USA has been linked to an increase in “unauthorized immigration” – foreign-born people arriving in the United States who are not legal residents of the United States.

The report says many of these people came from South America, Central America and Mexico – and that the number of immigrants from these regions is likely to triple in 2023 compared to its pre-pandemic average.

In recent years, more than half of immigrants have settled in one of four states: Florida, California, Texas and New York. The next most popular states were New Jersey, Illinois, Massachusetts, and Georgia. Accommodative policies toward immigrants and proximity to the southern border have both impacted their destinations.

Among immigrants aged 16 and older who arrived in the United States in the past three years, nearly 90% of them were between the ages of 16 and 54, compared to 62% of the U.S.-born population aged 16 years and older.

About 64% of these recent immigrants were working or looking for work, compared to 62% of U.S.-born workers. Recent immigrants had an unemployment rate of 6.3%, compared to 3.8% for U.S.-born workers.

Among recent immigrants aged 16 and older, about 55% were male, compared to 46% of the U.S.-born in the same age group.

Recent immigrants were much less likely than the U.S.-born population to have earned a high school diploma. Nearly a quarter of recent immigrants aged 16 or older had not completed high school, compared to 10% of the U.S.-born population.

However, recent immigrants were more likely than U.S.-born Americans to have a college degree. More than 39% of recent immigrants aged 16 or older had a bachelor’s degree or higher, compared to 34% of the U.S.-born population. The biggest disparity was in the share of workers with only “some college education”: about 13 percent of recent immigrants and 28 percent of the U.S.-born population.

The typical recent immigrant will likely earn less than $40,000 per year

The most common industries for recent immigrant workers were construction, professional and business services, and accommodation and food services.

More than 16% of recent immigrants worked in construction, compared to 6.4% of U.S.-born workers. Among the most common jobs in this industry are construction workers, carpenters and electricians, according to the Bureau of Labor Statistics.

About 17% of immigrants worked in the professional and business sector, compared to 12% of U.S.-born workers. Some of the most common jobs in this industry include janitors, security guards, and landscaping and grounds maintenance workers.

About 12% of recent immigrants worked in the accommodation and food service industry, compared to 7% of U.S.-born workers. Some of the most common jobs in this industry include “food preparation and service workers,” waiters and waitresses, cooks, and hotel front desk clerks.

According to Goldman Sachs, the typical recent immigrant worker earned about $39,000 a year in 2023, compared to $54,000 for the typical U.S.-born worker.

Have you recently moved to the United States and found work? If so, contact this reporter at jzinkula@businessinsider.com.

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