Migration Policy Institute


Employment and Workforce

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As millions of workers from the baby-boom generation begin retiring, projections indicate that any net growth in the US workforce over the next 20 years will come from new immigrants. These new immigrant workers and their children are expected to play a key role in helping the US weather this historic reshaping of its workforce, and in meeting the soaring demands that will be placed on health and social support programs by the elderly and those extremely old (over 85) over the next 30 years.

Currently, the immigrant labor force has an hourglass shape, with large shares of immigrants at the top and bottom of the skill distribution. Thirty percent of foreign-born workers have less than a high school education, while 28 percent hold a Bachelor’s degree or more – about the same rate as natives.

According to the 2000 Census, approximately 14 million, or nearly 9.5 percent, of all working-age adults in the United States either did not speak English at all or spoke it less than “very well,” and 89 percent of the LEP population was foreign born. The limited response of the current workforce system to the needs of low-skilled immigrant workers is a dominant issue in this area.

Research also indicates that many mid- and high-skilled immigrants face serious difficulties in obtaining recognition for the education, credentials, and work experience they obtained before arriving in the United States. Such workers may also be unfamiliar with American job search techniques and/or need assistance in updating skills or gaining US licensure or credentials in their occupations. Employers and regulatory bodies often lack expertise in comparing education and skill certifications obtained outside the United States, leaving many skilled immigrants working in jobs that require lower skills than they possess.

 


Did you know?

Nearly half of the growth in the US labor force in the 1990s and 60 percent between 2000 and 2004 was due to new immigrants.

There were over 20 million foreign-born individuals working in the US in 2004 – over half from Latin America and the Caribbean and a quarter from Asia.

One in five doctors in the United States is an immigrant.

While one in eight US residents is an immigrant, one in seven workers and one in five low-wage workers is an immigrant.


What’s Happening

Based on the recommendations of the National Research Council's Board on Testing and Assessment, the National Center for Educational Statistics (part of the Department of Education) has convened an expert panel to design a framework for the assessment of adult literacy and will begin the development of a measure of workplace literacy that will be administered as part of the National Assessment of Adult Literacy (NAAL). Considerations of the expert panel will include issues related to second-language literacy.

When completed, the framework will answer the following questions:

  • How have we defined workplace literacy?
  • What will the assessment measure?
  • What kinds of items and response formats will be used?
  • How many items/prompts will be needed to reliably report results?
  • What categories of performance will be reported?

The results of this measure will inform the decisions of policymakers, funders, business leaders, financial and social analysts, researchers, educators, and so on.

Recent MPI Analyses

Up for Grabs: The Gains and Prospects of First- and Second-Generation Young Adults
By Jeanne Batalova and Michael Fix
Youth and young adults from immigrant families represent one in four people in the United States between the ages of 16-26 and account for half of the growth of the young adult population between 1995 and 2010. This report profiles the nation’s 11.3 million first- and second-generation young adults, finding substantial generational progress in terms of high school graduation, college enrollment, and ability to earn family-sustaining wages. Second-generation Hispanic women are faring particularly well, with college enrollment rates equal to those of third-generation non-Hispanic white women. However, they are not graduating from college at the same rate or on the same timeline because of family, work, or economic reasons. The report sketches how postsecondary education, workforce development, and language training programs could better meet the needs of this population, which will assume a greater role as the US workforce ages.
Download Report | Press Release | Listen to Podcast

Immigration Policy and Less-Skilled Workers in the United States
By Harry J. Holzer
While broad consensus exists regarding the benefits of highly skilled immigration, the economic role of low-skilled immigrants remains in dispute. In this assessment of the research literature, the author makes an economics-based case for significant reform of the US immigration system. Among his suggestions for a more economically beneficial immigration system: Providing legal pathways for low-skilled workers, allowing less-skilled workers on employment-based visas to switch employers more easily and gain a path to citizenship, and setting employer visa fees at a level sufficient to offset some of the costs that low-skilled immigration imposes.
Download Report | Press Release

Still an Hourglass? Immigrant Workers in Middle-Skilled Jobs
By Randy Capps, Michael Fix, and Serena Yi Ying-Lin
It has been conventional wisdom that the immigrant workforce is shaped like an hourglass — wide at the top and the bottom but narrow in the middle. In reality, immigrants are more evenly dispersed across the skills spectrum than has been widely recognized. Using an innovative new method of analysis, the authors found that the fastest growth in immigrant employment since 2000 has occurred in middle-skilled jobs. The study, which examines employment in the US workforce and in four key sectors (IT, health care, construction, and hospitality), finds that employment growth for immigrants far outpaced native growth rates between 1990 and 2006 in the total economy and the four industries surveyed.
Report in Brief | Full Report | Press Release

The Impact of Immigrants in Recession and Economic Expansion
By Giovanni Peri
There is broad consensus among economists that immigration has a small but positive impact on the average income of Americans over the long term. But far less analysis has been done on the impact of immigrants on the labor market in the shorter term, particularly when viewed through the lens of the recession and its lingering labor market effects. This report finds that immigration unambiguously improves employment, productivity and income but that it also involves some short-term adjustments. These adjustments are more difficult during downturns, further underscoring the need for an immigration system that is more responsive to the economic cycle.
Download Report | Press Release

The Economics and Policy of Illegal Immigration in the United States
By Gordon H. Hanson
Illegal immigration’s overall impact on the US economy is negligible, despite clear benefits for employers and unauthorized immigrants and slightly depressed wages for low-skilled native workers, according to this report by University of California, San Diego Professor of Economics Gordon Hanson for MPI's Labor Markets Initiative. The largest economic gains from illegal immigration flow to unauthorized workers, who see very substantial income hikes after migrating, Hanson says, suggesting that policy changes could increase the positive contribution that low-skilled workers make to the US economy by converting illegal flows to legal ones.
Download Report | Press Release

Tied to the Business Cycle: How Immigrants Fare in Good and Bad Economic Times
By Pia M. Orrenius and Madeline Zavodny
Immigrants surpassed native-born workers in several key labor market outcomes from the mid-1990s through 2007, recording higher employment and lower jobless rates — but the trend was reversed with the onset of the current recession. The report, which analyzes employment and unemployment patterns over the past 15 years and two recessions, shows that immigrant economic outcomes began deteriorating before the current recession officially began in December 2007, tracing immigrants' declining fortunes largely to the housing bust which began in spring 2006.
Download Report | Press Release

Taking Limited English Proficient Adults into Account in the Federal Adult Education Funding Formula
By Randy Capps, Michael Fix, Margie McHugh, and Serena Yi-Ying Lin
This new report by MPI’s National Center on Immigrant Integration Policy examines the funding formula used to distribute Workforce Investment Act (WIA) Title II federal funds for adult education, literacy, and English as a Second Language instruction. Though all adults with limited English proficiency (LEP) are eligible for WIA Title II programs, the authors report that the formula used to distribute $554 million to the states in fiscal 2009 excludes 11.2 million LEP adults with at least a high school education. With WIA up for reauthorization, the authors suggest there is an opportunity for policymakers to revisit the funding formula and related issues.
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Immigrants and the Current Economic Crisis
By Demetrios G. Papademetriou and Aaron Terrazas
As the nation sinks into a recession that may be the worst since the Great Depression, the economic crisis raises fundamental questions about future immigration flows to and from the United States and how current and prospective immigrants will fare. This report, a research product of MPI's new Labor Markets Initiative, examines how the number of immigrants has changed since the recession began; how legal and illegal immigration flows may change; and how immigrants fare in the labor market during downturns.
Download Report | Press Release
More on the Labor Markets Initiative here

Uneven Progress: The Employment Pathways of Skilled Immigrants in the United States
By Jeanne Batalova and Michael Fix with Peter A. Creticos
More than 1.3 million college-educated immigrants in the United States are unemployed or working in unskilled jobs because they are unable to make full use of their academic and professional credentials, MPI reports in the first assessment yet of the scope of the “brain waste” problem. The report analyzes and offers possible solutions for the credentialing and language-barrier hurdles that deprive the US economy of a rich source of human capital at a time of increasing competition globally for skilled talent.
Download Report | Press Release | Purchase a Copy

Gambling on the Future: Managing the Education Challenges of Rapid Growth in Nevada
By Aaron Terrazas and Michael Fix
October 2008
Nevada, the fastest growing state in the United States, is experiencing a population boom – driven in part by immigration – that has key implications for its school system and labor market. Immigrants represent one in five Nevada residents and their children account for one in three Nevadans under age 18. Yet even as schools have experienced a surge in enrollment, federal and state investments in the state's failing education system haven't kept pace.
Download Report | Press Release

Los Angeles on the Leading Edge: Immigrant Integration Indicators and Their Policy Implications
By Michael Fix, Margie McHugh, Aaron Matteo Terrazas, and Laureen Laglagaron
April 2008
As Los Angeles makes the transition from being a city of immigrants to one dominated by their US-born children, it can serve as a policy laboratory for other cities facing the need to better integrate immigrants into US classrooms, workplaces, and civic life. MPI’s report details the imperative for integration policies that will benefit immigrants and the broader US society alike.
Download Report | Press Release

Improving Immigrant Workers’ Economic Prospects: A Review of the Literature
By Amy Beeler and Julie Murray
Securing the Future: US Immigrant Integration Policy, A Reader
February 2007

The Impact of Immigration on Native Workers: A Fresh Look at the Evidence
By Julie Murray, Jeanne Batalova, and Michael Fix
Task Force Insight No. 18, July 2006

College-Educated Foreign Born in the US Labor Force
By Jeanne Batalova
Migration Information Source, February 2005

The Foreign Born in the US Labor Force
By Elizabeth Grieco, Fact Sheet, January 2004

What Kind of Work Do Immigrants Do?
Occupation and Industry of Foreign-Born Workers in the US
By Elizabeth Grieco, Fact Sheet, January 2004
View Graphs


New Research in the Field
(List Under Development)

A Profile of Immigrants in Arkansas Volume 1: Immigrant Workers, Families, and Their Children
By Randy Capps, Everett Henderson, Donald Hernandez and Michael Fix, 2007.

Bridges to Opportunity: Workforce Development for English Language Learners
Proceedings of the Bridges to Opportunity Conference, LaGuardia Community College in Queens, New York
October 27 and 28, 2006

The Integration of Immigrants in the Workplace
By Peter A. Creticos, James M. Schultz, Amy Beeler, and Eva Ball
Institute for Work and the Economy, July 2006


Selected Readings
(List Under Development)

Creating Opportunities for a Stronger Economy through Language and Career Pathways
By Erin Brown, December 2005

Getting to Work: A Report on How Workers with Limited English Skills Can Prepare for Good Jobs
AFL-CIO Working for America Institute, May 2004

Issues with Outcomes in Workplace ESL Programs
By Miriam Burt
A report submitted to the US Department of Education, Office of Adult and Vocational Education; and the Institute for Work and the Economy,
Center for Applied Linguistics, 2004

Meeting the Challenge of Adult Education: A Bilingual Approach to Literacy and Career Development
By Ana G. Huerta-Macías
Journal of Adolescent and Adult Literacy, 47, No. 3 (2003): 218-226

Language, Literacy, and Workforce Development on the US-Mexico Border; Las Cruces, NM
By Heide Spruck Wrigley and J. Powrie
Literacywork International, 2003

The Language of Opportunity: Expanding Employment Prospects for Adults with Limited English Skills
By Heide Spruck Wrigley, Elise Richer, Karin Martinson, Hitomi Kubo, and Julie Straw
Center for Law and Social Policy, 2003

Workforce Education for Latinos: Policies, Programs, and Practices
By Ana G. Huerta-Macias, 2002

Immigrant Earnings: Language Skills, Linguistic Concentrations, and the Business Cycle
By Barry R. Chiswick and Paul W. Miller
Journal of Popular Economics 15 (2002): 31–57.

Workplace Language Teaching and the Intercultural Construction of Ideologies of Competence
By Mira-Lisa Katz
The Canadian Modern Language Review 57, No. 1 (2000):144-172.

Empowering the ESL Worker within the New Work Order
By Rita A. Moore
Journal of Adolescent and Adult Literacy, 43 , No. 2 (1999): 142-151.

Two Languages at Work
By Tara Goldstein
Canadian Modern Languages Review 55, No. 2, December 1998

Evaluation of Workplace Literacy Programs: A Profile of Effective Instructional Practices
By Larry Mikulecky and Paul Lloyd
Journal of Literacy Research 29 (1997): 555-585