Over 1.1 Million Foreign-Born Workers Laid Off Since January 2025

(UNITED STATES) Over 1.1 million foreign-born workers have exited U.S. jobs since the start of the Trump administration in January 2025, according to a new NFAP analysis that relies on federal labor data. From a peak in March 2025, the decline has reached as high as 1.5 million, marking the steepest contraction in the foreign-born labor force in more than a decade.

While unemployment has risen for both immigrant and native-born workers, the drop among immigrants stands out because it breaks a decade-long pattern of steady growth. Between 2014 and 2024, the foreign-born labor force grew by an average of roughly 652,000 workers each year. This year’s reversal, combined with tighter policies and softer hiring, is reshaping the labor market for people whose futures depend on employment and legal status.

Why the numbers matter

Employment is not just a paycheck for many immigrants; for many, it is the anchor that keeps them lawfully in the country. The NFAP analysis points to several drivers of the shift:

• Stricter immigration measures that limit new entries and renewals
• Efforts to end or reduce humanitarian programs that previously provided work authorization
• Layoffs in visa-specific categories (for example, H‑1B) that immediately place workers on a 60‑day countdown to find new sponsorship or leave

These policy and enforcement moves, layered on top of a cooling job market, make it harder for foreign-born workers to stay employed, switch jobs, or maintain status after a layoff.

Labor-market trends and industry impacts

The labor data also shows rising unemployment for both groups. In 2024, the jobless rate for foreign-born workers rose to 4.2% (from 3.6% in 2023), while the rate for native-born workers climbed from 3.6% to 4.0%. Those shifts were an early sign of a broader slowdown.

By early 2025, industries that rely heavily on immigrants—hospitality, food services, agriculture, manufacturing, and tech—reported weaker hiring and layoff waves. The contraction of foreign-born employment has added another force: fewer available workers in roles employers often fill with immigrants, particularly jobs requiring specialized skills, language ability, or hard-to-staff schedules.

VisaVerge.com reports employers in high-immigrant sectors are increasingly revising staffing plans and considering:

• higher wages
• automation
• moving functions overseas

Many small businesses say they struggle to compete for sponsorship-based talent due to higher wage floors and added compliance steps.

The White House frames its approach as protecting U.S. workers and focusing on higher-paid, higher-skill roles. Immigrant advocates counter that rapid cuts worsen labor shortages, raise costs for consumers, and separate families when workers lose status after a layoff.

Employment-based status mechanics

Nonimmigrant categories tied to a single employer—such as H‑1B, L‑1, and some E and O classifications—can be unforgiving after job loss.

• H‑1B professionals typically have a 60‑day grace period after termination to secure a new sponsor, change status, or depart the country.
• USCIS outlines post-termination options for nonimmigrant workers, including portability for certain categories, change-of-status filings, and short-term travel strategies. For reference, see USCIS’s page on options after termination: Options for Nonimmigrant Workers Following Termination of Employment.

Policy actions shrinking the authorized pool

The NFAP analysis highlights other policy choices that may be shrinking the pool of authorized immigrant workers:

• efforts to limit new refugee admissions
• steps to end or narrow Temporary Protected Status (TPS)
• reductions to humanitarian parole programs that previously provided work permits

When authorization tied to these programs ends, thousands lose the ability to work lawfully unless Congress or the courts step in. That creates a direct pipeline from policy change to real-world job loss, with knock-on effects for families and community businesses.

Economic tradeoffs for employers

Employers relying on immigrant labor for seasonal roles, specialized skills, or nights/weekends report gaps that are hard to fill:

• Managers may pay premium overtime to cover shortages.
• Over time, higher labor costs can raise consumer prices or push companies toward automation or offshoring.
• For many small firms, options are stark: leave roles open, pay more, or abandon projects they cannot staff.

These choices affect local economies—school schedules, bank services, and small businesses adjust to fewer customers and employees.

Human costs

The downturn has human consequences that data alone cannot show:

• Families built around one breadwinner’s visa feel the shock first.
• A laid-off H‑1B engineer can trigger a spouse on H‑4 to lose work authorization or force family moves.
• Students may withdraw mid-year; leases and loans become burdens.
• Remittances drop, affecting economies abroad.
• Mixed-status families face stress as U.S. citizen children may split households or move overseas.

Practical options and forms to know

Some workers have flexibility; small technical differences can decide who stays. Key forms and options:

• Workers changing employers in portable categories may start a new job after an employer files Form I‑129, Petition for a Nonimmigrant Worker: Form I‑129, Petition for a Nonimmigrant Worker.
• Those seeking a different status may file Form I‑539, Application to Extend/Change Nonimmigrant Status: Form I‑539, Application to Extend/Change Nonimmigrant Status.
• Workers relying on TPS or other humanitarian categories use Form I‑765, Application for Employment Authorization: Form I‑765, Application for Employment Authorization.

These options are time-sensitive; filing before a grace period ends can preserve a path to remain lawfully in the United States.

Employer responses and compliance

Human resources teams are adjusting:

• revisiting hiring plans
• factoring in longer onboarding for sponsored workers
• strengthening Form I‑9 procedures to verify authorization
• budgeting for legal counsel to ensure filings are timely and complete

Some employers are:

• prioritizing roles for U.S. citizens/permanent residents this year
• keeping sponsorships for highly specialized roles
• exploring satellite offices abroad to retain teams when transfers aren’t possible

Uncertainty about renewals and audits is changing planning for the next 6–12 months.

NFAP’s three identified forces

According to NFAP, three forces are behind the contraction:

1. Stricter immigration measures reducing inflow and limiting renewals
2. Termination/non-renewal of authorized statuses for some previously lawful workers
3. Layoffs in visa-specific categories that trigger departure unless new sponsorship is found quickly

These drivers reinforce each other—fewer entrants means harder replacement for those who leave; sunsetting work permits can make employed people fall out of compliance; layoffs in visa-dependent roles increase exits from the labor force.

Perspectives and policy debate

Supporters of the administration’s approach argue it can help native-born workers and emphasize higher wages and skills. Critics say many immigrant-heavy jobs already struggle to attract local applicants even with higher pay.

• Low-wage roles (food processing, elder care, seasonal agriculture, hotel work) often remain hard to fill.
• High-skill roles suffer productivity losses when mid-career talent departs, especially in smaller markets.

Local migration and community effects

The shift is reshaping internal migration patterns and local economies:

• Fewer new arrivals and more departures in communities that relied on immigrant staffing.
• Local schools, banks, and small businesses plan for flat or declining demand.
• Realtors report more listings as families with temporary status consider moving back home or where employers have offices abroad.
• County officials in agricultural areas report greater difficulty meeting planting and harvest schedules.

Near-term outlook and what to watch

The decline may continue into late 2025–2026, depending on policy and the economy. Important variables:

• Will the foreign-born labor force decline accelerate or level off? NFAP expects decreases could continue into 2026 if conditions hold.
• How will employers respond? Options include raising pay, investing in automation, offshoring, or scaling back plans.
• What policy and legal responses will emerge? Congress, the courts, and agencies could influence who can work and how fast cases move.

Lawsuits and legislation could create relief or pause changes. Business groups and advocates are already assessing prospects for cases and bills.

Practical checklist for workers and employers

For workers and families:

• Keep copies of pay stubs, I‑94 records, approval notices, and layoff letters.
• Track the 60‑day period if it applies to your visa type.
• Ask a new employer to file petitions as soon as possible and provide receipt notices quickly.
• Confirm eligibility before filing a change-of-status application.
• Calendar renewals for Employment Authorization Documents and file Form I‑765 early.

For employers:

• Train HR on Form I‑9 procedures and audit records.
• Identify roles where sponsorship is essential vs. roles feasible to fill locally.
• Keep close contact with immigration counsel on changing rules and processing times.

Broader economic adaptation

Different sectors will adapt unevenly:

• Tech: delay hiring for sponsored roles, focus on domestic fills
• Agriculture: reduce planting or switch crops if labor is unavailable
• Health care: increase overtime and agency staffing, increasing costs
• Hospitality/food service: cut hours or amenities if shifts cannot be filled

Each choice affects local communities—school schedules, transit, and neighborhood businesses.

Key takeaways

More than a million foreign-born workers have left jobs since January 2025, and the consequences extend beyond individual workers to employers, communities, and families.

Policymakers face tradeoffs: limiting new workers and tightening renewals can slow immigration growth and prioritize higher-wage roles, but rapid cuts can remove needed labor, raise costs, and harm families who followed the rules.

NFAP’s ongoing analysis and Bureau of Labor Statistics updates will be critical as stakeholders plan next steps. For immediate guidance, workers and employers should consult USCIS resources and qualified immigration counsel. See USCIS’s guidance on post-termination options here: Options for Nonimmigrant Workers Following Termination of Employment.

The coming months will test the system’s ability to handle sudden changes at scale. Processing times, audits, and enforcement shifts will shape whether laid-off workers return to jobs quickly or leave the country. Employers will determine which strategies—pay increases, training, or different staffing models—deliver the talent they need. Families will make decisions that affect schooling and housing. State and local leaders will reassess budgets and services where employment shifts change revenue and demand.

Labor markets run on people. Behind each NFAP number is a household trying to plan a future in uncertain times. If the country wants steady growth while managing change, policy and practice will need to be clear, fair, and timely so employers and workers alike can navigate the transition.