The US unemployment rate has risen despite strict immigration measures under the Trump administration. Policies aimed at cutting H-1B visas and protecting local jobs have not delivered expected results. Instead, joblessness among US-born workers has increased.
US Unemployment Rate Rises Despite H-1B Cuts
A job market analysis by the National Foundation for American Policy shows the US unemployment rate rose from 3.7% in December 2024 to 4.1% by December 2025. This happened even as 881,000 foreign-born workers exited the workforce after January 2025.
Why Fewer Immigrants Did Not Create More Jobs
The administration argued that reducing H-1B visa would free up jobs for Americans. Economists rejected this fixed jobs theory. Immigrants also create demand, start businesses, and support supply chains that generate employment for you and others.
Workforce Shortages Hit Companies
With fewer skilled workers available, start-ups and mid-sized firms now face staffing shortages. Expansion plans are slowing down. Hiring freezes are becoming common due to uncertainty around H-1B and other visa restrictions.
Indian Professionals Affected the Most
Indians form the largest skilled immigrant group in the US workforce. Their presence is strong in tech, healthcare, and research. As hiring slows, you see both Indian professionals and US companies struggle to fill critical roles.
Economists Warn Against Immigration Crackdown
Economists have opposed the crackdown from the start. Reports show immigrants accounted for over half of US labour force growth between 2014 and 2024. They drive consumption, innovation, and investor confidence across the economy.
