Increased immigration enforcement has affected the employment prospects of both domestic- and foreign-born workers, new research finds. Increased Immigration and Customs Enforcement (ICE) arrests have led to 4-5% higher unemployment for undocumented male workers, according to a new study from the National Bureau of Economic Research. In some areas with more immigration enforcement, an estimated 7,500 undocumented men are missing from the workforce.
Employers are not permitted to hire workers without proper authorization to work in the United States. Federal law requires employers to verify the identity and employment eligibility of every new hire through the timely completion of Form I-9. Immigration enforcement by ICE is intended not only to hold unauthorized foreign-born workers accountable, but also to ensure that employers comply with hiring laws.
There are several common avenues through which foreign-born individuals may legally obtain authorization to live and work in the United States, including family-based immigration programs, employment-based visa programs, and humanitarian protections. Depending on the type of status sought — and whether the visa is classified as immigrant or nonimmigrant — different eligibility requirements, application procedures, sponsorship obligations, and employment rules apply.
“Foreign-born people, including documented and undocumented migrants, have become deeply entwined with the U.S. workforce over time, so much so that firms in certain sectors would be unable to operate effectively without access to this pool of labor,” said Justin Ladner, senior economist at SHRM.
The ripple effect further complicates the workforce planning picture, as U.S. born workers are also impacted by the reduced availability of undocumented foreign-born labor. One male U.S.-born worker with a high school education or less loses their job for every six jobs lost by undocumented male workers.
This matters because many employers depend on mixed-skill teams, where the loss of one group disrupts work for others. For example, in construction, fewer laborers can mean less work for electricians, plumbers, and supervisors as projects are cut or delayed.
Foreign-born workers made up 19.2% of available labor in the U.S. as of October 2024, according to the SHRM report The Role of Foreign-Born People in the U.S. Labor Force. This report and the Bureau of Labor Statistics data it relies on does not distinguish between documented and undocumented immigrants. Foreign-born workers made up at least 25% of employment in four major occupational groups:
- Building/grounds cleaning/maintenance (39.8%).
- Farming/forestry (38.5%).
- Construction/extraction (34.3%).
- Computer/mathematical (26.7%).
“Due to the aging U.S. population and declining fertility rates, immigration remains the most accessible tool for promoting labor supply growth,” Ladner said. “A significant, long-run decline in the foreign-born working population could depress overall labor supply growth and exacerbate many of the persistent labor shortages that certain sectors have struggled with in recent years.”
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