Decline in overseas job clicks could deepen labor shortages in healthcare, construction, and other key sectors

Interest from foreign job seekers in U.S.-based positions has dropped significantly over the past year, potentially threatening industries already struggling to fill open roles, according to a new report released May 13 by job search platform Indeed.

The report found that the share of job ad clicks originating from outside the U.S. fell by 29% in the past 12 months. After peaking at 2.4% in August 2023, foreign interest remained relatively stable through the 2024 U.S. election cycle but plunged to 1.7% by March 2025.

“The decline comes as immigration policies tighten globally and the U.S. labor market cools,” according to the report. “This drop could have real economic consequences, especially for sectors like healthcare and construction that depend heavily on immigrant labor. Fewer clicks today could mean fewer workers tomorrow, potentially deepening labor shortages in industries already under strain.”

Immigrant Labor Plays a Critical Role

The impact of this trend could be substantial given the significant share of immigrant workers across key U.S. industries. As of March 2025, nearly 20% of all U.S. workers are foreign-born, up from 16.7% in June 2020, Indeed reported. Migrant labor has helped stabilize a tight post-pandemic job market, supporting wage growth and helping employers address widespread shortages.

For certain occupations, immigrants make up an even greater share of the workforce:

• 30% of construction workers
• 26% of physicians and surgeons
• 40% of home health aides

With these roles already difficult to fill, a shrinking international labor pool could further stress employers and slow overall economic output.

Uncertainty Around Immigration Policy Adds to Concerns

The decline in foreign job seeker interest coincides with tighter immigration policy and increasing enforcement under the Trump administration, leaving employers and hiring managers uncertain about their long-term workforce strategies.

Employer-side attorneys told HR Dive that U.S. companies are struggling to adjust to new immigration rules and shifting interpretations of policy. The lack of clear guidance may chill talent acquisition efforts, especially for firms that depend on access to foreign workers.

“Ongoing changes from the Trump administration may chill employers’ talent operations,” they said, noting that the current policy environment poses “numerous talent challenges” for 2025.

Experts told HR Dive that reduced immigration may have a ripple effect across the broader economy — including slower productivity growth, potential economic contraction in tech, healthcare, and construction, and even job loss for domestic workers as businesses scale back.

While it remains to be seen how lasting this decline in foreign interest will be, the report warns that failure to reverse the trend could exacerbate labor shortages and add inflationary pressure, particularly in essential industries.

Originally reported by Carolyn Crist in Construction Dive.