The American workforce is undergoing a profound shift: foreign-born workers are gaining jobs at a faster rate than U.S.-born workers, according to recent data from the U.S. Bureau of Labor Statistics. While this reflects the resilience and contribution of immigrants in today’s economy, it also highlights growing disparities—and a system that increasingly undermines fairness, transparency, and equal access to opportunity.

 

The Disparity Is Real

Foreign-born employment has surged, helping employers fill labor shortages across tech, healthcare, logistics, and construction. Meanwhile, U.S.-born workers are facing stagnation or falling out of the workforce altogether, especially in mid-skilled roles where career progression once felt possible.

This isn’t just a reflection of worker preferences or economic evolution—it’s the byproduct of structural choices and unchecked systems. In 2024, foreign-born workers accounted for 19.2% of the U.S. labor force, up from 18.6% in 2023. Their labor force participation rate was 66.5%, compared to 61.7% for native-born workers^[1]. Foreign-born men participated at a much higher rate than native-born men—77.3% versus 65.9%^[1].

Foreign-born workers are disproportionately represented in:

• Service occupations (22.0% vs. 15.1% native-born)
• Construction and maintenance (13.9% vs. 7.7%)
• Transportation and material moving (15.5% vs. 11.6%)^[1]

Despite this strong presence, their median weekly earnings remain significantly lower: $1,001 compared to $1,190 for native-born workers^[1].

 

H-1B Visa Abuse: Innovation or Exploitation?

The H-1B visa program was designed to fill critical talent gaps. But in reality, it’s become a cost-cutting tool, often used to bypass qualified domestic talent in favor of cheaper labor. When misused, it:

• Suppresses wages and blocks upward mobility
• Crowds out qualified U.S.-born applicants
• Undermines trust in merit-based hiring

The issue isn’t with immigrant talent—it’s with how the system is gamed by those who prioritize profits over fairness.

 

Unspoken Gatekeeping: Nepotism and Network Hiring

Another challenge gaining quiet momentum is nepotism and preferential hiring practices within tightly-knit foreign-born worker communities. In certain industries—particularly in tech and engineering—hiring pipelines are increasingly insular, relying on internal referrals that can unintentionally exclude outsiders, especially U.S.-born applicants or those from underrepresented backgrounds.

We’ve heard it firsthand: hiring managers recruiting almost exclusively from within a specific cultural group. Entire teams formed through networks rather than open competition. This trend, while perhaps not malicious, can create invisible walls for those without the "right" connections—even if they have the right skills.

The result? A talent economy that talks about inclusion, but practices exclusion in subtle, systemic ways.

 

What’s at Stake

• Innovation suffers when teams lack diversity of thought and background.
• Workers lose faith in the promise of hard work leading to opportunity.
• Underdogs—regardless of origin—are pushed further to the margins.

 

What We Believe at Underdog Innovation Inc.

We don’t believe in division—we believe in dismantling the systems that create it.

Whether you're a foreign-born worker or U.S.-born, fairness should be the standard. Opportunity should be earned, not inherited or reserved for insiders.

We’re calling for:

• Reform of the H-1B system to ensure it fills true talent gaps—not wage gaps.
• Transparency in hiring practices to reduce favoritism and insider-only pipelines.
• Investment in education, reskilling, and entrepreneurship for all, especially those left behind.
• Support for ethical, inclusive hiring cultures in tech, startups, and beyond.

At Underdog Innovation, we’re building a future where access isn’t about who you know, but what you can do—and who you can become. That’s how we close the divide. That’s how we rise—together.

 

References

1. U.S. Bureau of Labor Statistics. Foreign-Born Workers: Labor Force Characteristics — 2024. May 20, 2025. https://www.bls.gov/news.release/pdf/forbrn.pdf