Washington, D.C. (March 14, 2021) - An analysis by the Center for Immigration Studies of Labor Department data shows that while the official unemployment rate for both the U.S.-born and immigrants has fallen significantly, it remains higher than before Covid. But perhaps most important, the labor force participation rate — the share of working-age (16-64) people holding a job or looking for one — remains near historic lows. Those not looking for work are not included in the official unemployment rate.
The economic and social disruptions caused by Covid-19 exacerbated what has been a long-term decline in the labor force participation rate going back decades. In the fourth quarter of 2021, only 73.2 percent of the working-age (16-64) U.S.-born were in the labor force compared to 77.3 percent in 2000. If their labor force participation had remained the same as it was in 2000, then nearly seven million more Americans would have been in the labor force in 2021.
Dr. Steven Camarota, the Center’s director of research and co-author of the report, said, “The decline in labor force participation is especially pronounced among the less educated. There would seem to be an enormous supply of potential workers for employers to draw on, if properly paid and treated.”
Among the findings:
- The unemployment rate for the U.S.-born (ages 16-plus) was 4.0 percent in the fourth quarter, higher than the 3.5 percent in the fourth quarter of 2019 before Covid-19. Among immigrants (legal and illegal together), the rate was 3.9 percent, higher than the 2.8 percent in the fourth quarter of 2019.
- The total number unemployed in the fourth quarter of 2021 was six million — five million U.S.-born and one million immigrants.
- In addition to the six million unemployed, 54.2 million working-age (16-64) U.S. residents were not in the labor force — 45.3 million U.S.-born and 8.9 million immigrants.
- The total number of (16-64) immigrants and U.S.-born not working — unemployed or not in the labor force — in the fourth quarter of 2021 was 60.6 million. Of this number, 69 percent are adults without a bachelor’s degree.
- The Covid-19 shutdown has exacerbated the long-term decline in the labor force participation rate — the share of working-age (16-64) people working or looking for work. Those not in the labor force are not counted as unemployed.
- Although it has improved since the low in 2020, the share of the U.S.-born (16-64) in the labor force was only 73.2 percent in the fourth quarter of 2021, down from 74.1 percent in 2019 before Covid-19 hit, and 75.2 percent in 2007 before the Great Recession, and 77.3 percent at the peak in 2000.
- If the same share of working-age U.S.-born (16-64) were in the labor force in 2021 as in 2000, then 6.9 million more people would be in the labor force. Since 2000, legal and illegal immigration has added 8.8 million workers.
- Focusing only on U.S.-born adults (18-64) without a college degree shows an even more pronounced decline in labor force participation. In the fourth quarter of 2021, only 70.2 percent were in the labor force, compared to 71.4 percent in 2019, 74.3 percent in 2007, and 76.4 percent in 2000.
- Among U.S.-born Black American adults (18-64) without a bachelor’s degree, only 66.3 percent were in the labor force in the fourth quarter of 2021, compared to 71 percent of U.S.-born whites and 72 percent of U.S.- born Hispanics.
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