Briefing

How Does the Foreign-Born Population Affect Labor Force Growth?

Abstract: Long-term demographic trends, especially population aging, have been a major factor contributing to the slowdown in labor force growth. Once age composition is considered, a large part of the apparent decline in participation among native workers reflects shifting age structure rather than changes in actual labor force participation rates. Foreign-born workers have provided a steady positive contribution to labor force growth. Their role has grown mainly because of population expansion through net migration, although they too show signs of an aging profile over time. These patterns suggest that future labor force growth will rely more on population dynamics (aging and changes in the foreign-born population) rather than changes in participation.

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2026-01-30

Volume: 26

Issue: 03