1.1 Million Foreign-Born Workers Laid Off Since Trump Administration Began: A Deep Dive
Introduction
Since the inauguration of President Donald Trump in January 2025, the U.S. labor market has witnessed a significant shift, with over 1.1 million foreign-born workers losing their jobs, according to a National Foundation for American Policy (NFAP) analysis of Bureau of Labor Statistics (BLS) data. This marks a sharp reversal from the steady growth of the foreign-born labor force over the past decade. Stricter immigration policies, a cooling job market, and targeted enforcement actions have driven this decline, raising concerns about economic growth, labor shortages, and the human toll on immigrant communities. This blog explores the causes, impacts, and broader implications of this unprecedented contraction in the U.S. foreign-born workforce as of September 17, 2025.
The Numbers: A Stark Decline
According to the NFAP, the number of foreign-born workers in the U.S. labor force has dropped by 1.1 million since January 2025, with a peak decline of 1.5 million from March 2025. This is a dramatic shift from the 2014–2024 period, when the foreign-born labor force grew by an average of 652,000 workers annually. Key data points include:
- Unemployment Rates: In 2024, the unemployment rate for foreign-born workers rose to 4.2% (from 3.6% in 2023), slightly higher than the 4.0% rate for native-born workers (up from 3.6%). By August 2025, overall U.S. unemployment hit a four-year high of 4.3%.
- Labor Force Shrinkage: The total U.S. labor force grew by only 34,000 since January 2025 and dropped by 357,000 from its April 2025 peak, partly due to the loss of foreign-born workers.
- Immigrant Population Decline: Pew Research Center notes that the U.S. foreign-born population fell from 53.3 million in January 2025 to 51.9 million by June 2025, the first decline since the 1960s, with immigrants comprising 15.4% of the population (down from 15.8%).
A small uptick of 173,000 foreign-born workers between July and August 2025 is considered a statistical fluctuation rather than a trend reversal.
Drivers of the Layoffs
The sharp decline in foreign-born employment is attributed to a combination of policy changes and economic factors:
Stricter Immigration Policies:
- The Trump administration implemented 181 executive actions in its first 100 days to curb immigration, including restrictions on asylum applications and the termination of humanitarian parole and Temporary Protected Status (TPS) programs.
- Policies blocking up to 125,000 refugee admissions and increased deportations have reduced the pool of authorized workers.
- Arrests and detentions of immigrants have reached record levels, pulling many workers out of the labor force.
Visa-Specific Layoffs:
- H-1B visa holders, critical to sectors like technology, face a 60-day grace period to find new employment or leave the U.S. after a layoff, exacerbating job losses.
- Tech layoffs in 2025, following 22,000 job cuts in February alone, have disproportionately impacted foreign-born workers on temporary visas.
Economic Slowdown:
Economic and Social Impacts
The decline in foreign-born workers has far-reaching consequences:
Economic Growth Concerns:
- Economists warn that shrinking the foreign-born labor force hampers job creation and productivity. Immigrants drive demand for goods and services and boost efficiency alongside native-born workers.
- The NFAP projects continued labor force contraction into 2026, risking supply bottlenecks, inflation, and constraints on Federal Reserve monetary policy.
- Industries like technology, healthcare, agriculture, and construction face labor shortages, potentially leading to automation or offshoring.
Human Toll:
- For many foreign-born workers, employment is tied to legal status. Layoffs trigger a 60-day countdown for visa holders to secure new jobs or leave, causing significant stress for families.
- The decline in humanitarian programs like TPS affects vulnerable communities, particularly Venezuelans and Haitians, despite legal challenges blocking some policy changes.
No Clear Benefit to Native-Born Workers:
- Contrary to claims by Trump officials, the drop in foreign-born workers has not improved outcomes for U.S.-born workers. Slow job growth and rising unemployment (4.3% overall in August 2025) affect both groups.
- Labor economist Mark Regets notes, “The loss of immigrant workers and consumers is a major cause of slow job growth.”
Industry-Specific Impacts
The layoffs have hit key sectors reliant on foreign-born workers:
- Technology: H-1B visa holders face pressure to find new jobs within 60 days, with Seattle’s tech sector alone reporting significant impacts.
- Hospitality and Agriculture: These labor-intensive industries struggle with hiring gaps, increasing costs and pushing businesses toward automation.
- Manufacturing: A loss of 12,000 jobs in August 2025 reflects broader labor shortages exacerbated by immigration restrictions.
Critiques and Counterarguments
- Policy Rationale: Supporters of the Trump administration, like White House Deputy Chief of Staff Stephen Miller, argue that reducing immigration prioritizes U.S.-born workers. However, data shows no clear economic benefit, with native-born unemployment also rising.
- Economic Necessity: Federal Reserve Chair Jerome Powell has credited foreign-born workers with reducing inflation post-COVID, suggesting their absence could fuel price pressures.
- Statistical Nuance: Some argue the decline in foreign-born population estimates may partly stem from lower Census Bureau survey participation, though policy impacts remain undeniable.
Looking Ahead
The NFAP projects that the foreign-born labor force will continue to contract through 2026 unless immigration policies are relaxed. This could deepen labor shortages and slow economic recovery. Potential solutions include:
- Policy Reforms: Easing restrictions on work visas or restoring TPS and parole programs could stabilize the workforce.
- Industry Adaptation: Businesses may need to invest in automation or advocate for visa system improvements, as highlighted by South Korea’s president regarding U.S. investments.
- Legal Challenges: Ongoing lawsuits, such as those blocking TPS terminations for Venezuelans and Haitians, may mitigate some impacts.
Conclusion
The loss of 1.1 million foreign-born workers since January 2025, driven by stringent immigration policies and a cooling job market, signals a critical shift in the U.S. labor landscape. While intended to prioritize native-born workers, these changes have not delivered promised benefits, instead contributing to economic stagnation and labor shortages. The human and economic costs underscore the need for balanced immigration policies that support both workers and industries. As investigations continue, stakeholders must address these challenges to ensure a resilient and inclusive economy.
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