The COVID-19 pandemic caused significant job losses in the United States, leaving approximately 24 million workers unemployed. Notably, about 1 in 4 of these workers were foreign-born. As the economy began to recover, there was a strong demand for labor, but not enough workers to fill the available positions.
Economist Bryce Ward, co-founder of ABMJ Consulting in Montana, noted that the worker shortages after the pandemic were genuine, prompting employers to seek various solutions. He emphasized that immigrants played a crucial role in addressing these labor shortages.
Foreign-born workers, which include naturalized citizens, legal permanent residents, refugees, visa holders, and unauthorized immigrants, responded positively to the labor market’s needs. Their employment numbers returned to pre-pandemic levels within a year and a half after the initial shutdowns, outpacing both native-born workers and overall employment recovery.
Growth Across States
From January 2020 to July 2024, foreign-born employment in the U.S. grew nearly 15%, translating to about 4 million additional foreign-born workers. This includes approximately 75,000 new workers in Ninth District states. In states like Montana, North Dakota, and Wisconsin, foreign-born employment exceeded the national average.
In Montana, foreign-born employment rose significantly to 88%, although this increase contributed minimally to overall job growth due to the state’s small immigrant population. Conversely, North Dakota saw a smaller increase in foreign-born employment but it accounted for nearly half of the state’s job growth since early 2020. Wisconsin experienced a substantial 24% increase in foreign-born workers, contributing more than half of its overall employment growth.
Minnesota also benefited from foreign-born labor during its recovery from the pandemic, although its growth rate for immigrant employment was slower than the national average. In contrast, states like Michigan and South Dakota saw job growth primarily driven by native-born workers.
In South Dakota, economic developers noted slower growth in immigrant employment. Some companies have turned to temporary visa programs to meet labor demands; however, many requests have not been approved. The state’s immigrant workforce was heavily concentrated in production jobs before the pandemic, particularly in food production. A reported decline of 35% in this sector has hindered overall growth in immigrant employment.
Labor Market Dynamics
Immigrant workers tend to cluster in specific occupations, and recent trends have reinforced their roles in certain sectors. Health-care support jobs—such as nursing assistants—saw significant increases in immigrant workers since the pandemic began. This sector has been pivotal for foreign-born employment growth, especially in Minnesota.
J.P Holwerda from the International Institute of Minnesota highlighted that health care offers a pathway for new arrivals to integrate into the workforce due to its structured pay scales and cultural competency training.
Construction jobs also attracted many immigrant workers from Latin America to meet high labor demands for roles like drywall installers and painters. However, there has been a decline in foreign-born practitioners and technical health care roles due to increased competition and changes in demand.
Additionally, many foreign-born workers have shifted away from traditional roles such as food preparation and service jobs during the pandemic recovery period. Woodrow Piner from the North Central States Regional Council of Carpenters noted that many restaurant workers transitioned into construction jobs as they sought more stable employment.
Despite a gradual slowdown in labor demand, there remains a persistent need for workers across various sectors. Andrea Olson from Community Action Partnership of North Dakota expressed her organization’s struggle to find enough workers for weatherization projects and their eagerness to engage immigrant labor through legal immigration channels.
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