The number of new immigrants entering the U.S. construction industry saw a significant rise in 2022, reflecting the sharp increase in net immigration in recent years. According to the latest American Community Survey (ACS), nearly 130,000 new foreign-born workers joined the construction sector to help address ongoing labor shortages. This influx is larger than the combined number of immigrants who entered the industry during the two years leading up to the pandemic. The last time the construction industry saw a similar number of new immigrant workers was during the housing boom of 2005-2006.
Native-born workers have remained hesitant to enter the industry, with their numbers still falling more than half a million short of the peak levels seen during the mid-2000s housing boom. As a result, the proportion of immigrants in construction reached a historic high of 25.5% in 2023. In construction trades specifically, the share of immigrant workers is even higher, with one in three craftsmen coming from outside the U.S.
In 2023, the total construction workforce—comprising both self-employed and temporarily unemployed individuals—was 11.9 million. Of this, 8.9 million were native-born, and 3 million were foreign-born, the highest number of immigrant workers in construction recorded by the ACS.
While the overall construction labor force has grown since the pandemic, it is still smaller than during the housing boom of the mid-2000s. The gap is primarily due to the absence of native-born workers. Compared to 2006 peak levels, the industry is short by 550,000 native-born workers, and the influx of immigrants has only partially addressed this shortage. The chart above excludes 2020 data due to the difficulties in data collection during the early pandemic lockdowns.
Typically, the number of new immigrant workers entering the construction industry closely tracks labor demand, rising when housing starts increase and falling sharply when housing activity slows. This relationship is usually very responsive, with changes in immigration levels often reflecting shifts in construction activity within the same year. Historically, a high correlation exists between new immigrant arrivals in construction and new single-family home starts.
However, the significant increase in new immigrant workers in 2022 did not align with a rise in home building, as new single-family starts actually declined during this period. This disconnect is not unprecedented; in 2017, for example, despite steady increases in housing starts, the number of new immigrants in construction dropped unexpectedly. The disruption caused by pandemic-related lockdowns and travel restrictions further broke this link, significantly impacting the flow of new immigrant workers. The flow returned to more typical levels in 2021, driven by the ongoing demand for home building.
The overall rise in the share of immigrants in the workforce, particularly in construction, mirrors broader trends across the U.S. economy. Excluding construction, the share of immigrants in the U.S. labor force grew from just over 14% in 2004 to more than 17% in 2023, the highest share ever recorded by the ACS.
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