New Census Bureau workforce data shows a significant increase in companies employing large shares of foreign-born workers, highlighting structural changes inside the American technology labor market.
By yourNEWS Media Newsroom
New federal workforce data is providing the most detailed statistical picture to date of how the composition of the American technology labor force has changed over the past two decades, revealing a steady increase in companies employing large numbers of foreign-born workers.
According to a detailed analysis highlighted in a report by WND, the shift reflects not only immigration trends but also changes in how technology companies recruit and structure their workforce.
For many American technology workers, the transformation of the industry became visible gradually. Instead of appearing suddenly through policy announcements or government reports, workers began noticing fewer direct hiring opportunities, more contract-based roles replacing permanent jobs and increasing reliance on consulting firms to staff technical teams.
Over time, many engineers and developers reported that entire projects were being staffed through vendor networks that recruit globally. Some workers raised concerns publicly, others pursued legal complaints, and several cases eventually reached federal courts.
One of the most prominent examples emerged in late 2024 when a federal jury determined that the IT consulting firm Cognizant discriminated against American workers in hiring practices. Evidence presented during the trial showed the company’s workforce was overwhelmingly foreign-born, with internal communications and recruitment patterns indicating U.S. applicants were often disadvantaged.
The case raised broader questions about whether the hiring practices identified in court were isolated or part of a larger structural pattern across the technology industry.
New data released through the Census Bureau’s Business Dynamics Statistics of Human Capital program now provides a nationwide dataset that allows researchers to examine workforce composition across hundreds of thousands of American companies between 2006 and 2022.
The program links millions of W-2 tax records with employer data, allowing analysts to study how workforce demographics interact with company formation, job growth and industry expansion.
The Census tables classify workers by nativity rather than visa status, meaning foreign-born workers include naturalized citizens, permanent residents and temporary visa holders. However, the industries where foreign-born workforce shares are highest overlap significantly with sectors that generate large numbers of employment-based visa petitions, including the H-1B program.
Supporters of global recruitment argue that international hiring allows companies to address specialized skill shortages and remain competitive in advanced technology fields. Critics argue that consulting firms and outsourcing networks create a labor pipeline that directly competes with domestic workers.
The new Census dataset offers one of the most comprehensive views yet of how the workforce structure has evolved.
Across all industries and company sizes, businesses where foreign-born workers accounted for between 75% and more than 90% of employees increased from approximately 459,254 companies in 2006 to about 707,442 by 2022.
Employment within those companies grew from 2,304,412 workers to 3,366,786 workers during the same period, representing an increase of more than 1.06 million jobs.
The pattern extends into the sector most closely associated with software development, engineering and technical consulting: Professional, Scientific and Technical Services.
Within that industry, companies where foreign-born workers represented between 50% and more than 90% of employees expanded significantly. The number of such companies grew from roughly 75,157 in 2006 to approximately 125,325 by 2022.
Employment inside those firms rose from 419,874 workers to 797,994 workers, an increase of 378,120 jobs.
The change is especially visible among small consulting firms, which often serve as recruiting channels for large corporations.
Among companies with 1 to 19 employees, businesses where more than 90% of workers were foreign-born increased from 40,743 to 75,698. Employment inside those firms rose from 89,156 workers to 148,162.
Meanwhile, smaller firms where fewer than 10% of workers were foreign-born experienced little growth. Their number increased only slightly from 437,379 companies to 453,797, while employment in those companies declined from 1.6 million workers to approximately 1.52 million.
The trend also appears among mid-sized companies employing between 20 and 499 workers. Firms where foreign-born employees represented between 10% and 25% of the workforce saw employment grow from 754,416 workers to 1,167,368 workers.
Companies where foreign-born workers represented between 25% and 50% of employees expanded from 325,278 workers to 471,328.
Even among companies where foreign-born workers accounted for 50% to 75% of employees, employment increased from 78,030 workers to 117,778.
Large employers show a different pattern. Instead of becoming overwhelmingly foreign-born, major corporations increasingly operate with mixed international workforces.
Among firms with 500 or more workers in Professional, Scientific and Technical Services, employment in companies where foreign-born workers represented 25% to 50% of the workforce increased from 278,058 workers in 2006 to 851,557 workers in 2022.
Employment in firms where foreign-born workers accounted for between 10% and 25% of employees also grew substantially, rising from 1.8 million workers to approximately 2.55 million.
Analysts say this pattern reflects the role of consulting firms that recruit workers internationally and deploy them through contracts with larger corporations.
In many cases, engineers and technical specialists work inside corporate offices for years while technically remaining employees of the consulting firms that recruited them.
The growth of these consulting networks coincides with broader changes in the national workforce. According to federal labor statistics available here, foreign-born workers accounted for about 19.2% of the total U.S. labor force in 2024, the highest share on record.
At the same time, growth in the native-born workforce has slowed in several industries due to demographic trends.
Within the technology consulting sector, however, the Census data suggests a more structural transformation. The industry increasingly relies on international recruiting pipelines and contracting arrangements that connect global labor markets to American companies.
Taken together, the Census Bureau data provides a statistical framework for understanding changes that many workers say they have observed firsthand across the technology sector.
For policymakers and labor analysts, the dataset offers a new level of visibility into how hiring structures have evolved across the U.S. economy and how workforce composition has shifted inside one of the country’s most influential industries.
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