February 2026
Immigration: The U.S. Economy’s Secret Weapon
While the Trump Administration has consistently criticized the impact of foreign-born workers and moved to limit immigration—most notably through an overhaul of the H-1B nonimmigrant visa program—economic data suggests a different story. In fact, nearly one in five workers in the U.S. today was born abroad to non-citizen parents. This demographic grew to about 19.2% of the total U.S. labor force last year from 16.5% a decade ago. By the end of 2024, that came to 32.3 million people.
As shown in the table below, most of these foreign-born workers (over a third) were in management or professional roles, with another 20.0% in the service industry and 15.5% in production, transportation, and material moving occupations in 2024.
| Employment of Foreign-Born Workers by Occupation as a Percent of Total Employed | |||||
| Year | Management, Professional & Related Occupations | Service Occupations | Natural Resources, Construction and Maintenance Occupations | Production, Transportation and Material Moving Occupations | Sales and Office Occupations |
| 2014 | 30.7% | 24.1% | 13.7% | 15.6% | 16.0% |
| 2024 | 35.4% | 22.0% | 13.9% | 15.5% | 13.2% |
| Source: Bureau of Labor Statistics, Foreign–Born Workers: Labor Force Characteristics, 2024 | |||||
An analysis from the Federal Reserve suggests rising immigration has helped to address the recent shortfall in workers to fill the many job openings. By filling roles in construction and hospitality—sectors that faced severe shortages post-pandemic—immigrant labor has acted as a buffer against inflation and played a key role in preventing a major recession between 2024 and 2025.
Sources: Bureau of Labor Statistics and Federal Reserve Bank of Kansas City
January 2026
The Undersung Success of U.S. Services Sales
Washington policymakers often focus on the U.S. goods trade deficit, but it’s the nation’s services sector that remains a powerhouse of global commerce.
According to 2023 data from the Bureau of Economic Analysis, U.S.-based companies generated $3.05 trillion in services both through trade and through their foreign affiliates, significantly outperforming the $1.97 trillion in services imports and payments. Because many services require local delivery, the majority of these sales occur through foreign affiliates of U.S. multinational companies.
The United Kingdom was the primary market for these exports at $456 billion in 2023. Ireland ($328 billion) and Canada (over $250 billion) rounded out the top three U.S. services sales markets the same year.
Information services, wholesale trade, and finance and insurance represented the largest industry sectors in 2023.
However, this important economic engine faces growing risks because of the Trump Administration’s aggressive trade policy. These policies risk “tit-for-tat” retaliation from trading partners, introducing economic uncertainty and market instability, potentially stifling future growth in this critical sector.
Source: Bureau of Economic Analysis