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The Economic Impact of Immigrants in Minnesota

The Economic Impact of Immigrants in Minnesota. Katherine Fennelly Anne Huart Humphrey Institute of Public Affairs University of Minnesota. Enormous diversity: immigrants, refugees, low and high-skilled workers and their families. Aging citizens + Need for young work force

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The Economic Impact of Immigrants in Minnesota

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  1. The Economic Impact of Immigrants in Minnesota Katherine Fennelly Anne Huart Humphrey Institute of Public Affairs University of Minnesota

  2. Enormous diversity: immigrants, refugees, low and high-skilled workers and their families

  3. Aging citizens+ Need for young work force + insufficient visas for workers = large undocumented population and underclass who are major economic contributors to the state & the US

  4. Aging citizens

  5. The Graying of the U.S. Population Projected Increase in U.S. Population Over Age 65 millions Source: Fed. Interagency Forum on Aging, 2000

  6. Projected Changes in US Labor Force 1998-2008: ThreeMillion Fewer Workers Ages 25-44 Workers 25-44 Workers 45+ Source: Dohm, 2000

  7. Minnesota’s Boom Generation Begins Turning 65 in 2011 Source: Stinson& Gillaspy, 12/05

  8. Aging in Minnesota By 2020 Minnesota will have more retirees than school children Source: Atkins et al. 2020 Caucus Strib 2/26/06

  9. Need for young work force • demand for both high skilled and low skilled workers

  10. Nearly 6 million new jobs will be created between 2004 and 2014 that require only short-term on-the-job training* Percent of projected openings 2000-2010 by training required * BLS; pie chart source: Paral, 2006 using BLS Data

  11. Few Natives Available for Low-Skilled Jobs Non-High School Graduates in 2005: Native-born: 12 % Foreign-born: 33 % Foreign-born Hispanics: 54 % Source: US Census Bureau, “Educational Attainment in the US: 2005”, 9/06

  12. Industries Relying on Unauthorized Immigrant Workers • 21% of private household workers • 24% of farm workers • 17% of cleaning crews • 12% of food preparation workers • 12% of construction workers • 10% of leisure & hospitality employees Overall: 5% of US Civilian Workforce Source: Pew Hispanic Center Fact Sheet “The Labor Force Status of Short-Term Unauthorized Workers, 2005” , April 13, 2006

  13. Growth in Minnesota Labor Force Attributable to Latinos 1990 and 2000* 24% Source: Census, U.S. Bureau of the. 1990 Census and 2000 Census Sf3MNPlanning Data Net, 2002 [cited 2/28/03 2003]. McMurray, Martha. "Minnesota Labor Force Trends 1990-2000." Minnesota Planning OSD-02-101, no. December, 2002

  14. Selected Non-Metro Minnesota Cities with the Largest Hispanic Populations: School Enrollments With and Without Hispanic Students, 1999–2008 85000 80000 75000 70000 With Hispanics Without Hispanics 65000 60000 55000 50000 99-'00 00-'01 01-'02 02-'03 03-'04 04-'05 05-'06 06-'07 07-'08 08-'09 Academic School Year *School Districts Included: Crookston, Moorhead, St. Cloud, Willmar, Marshall, Glencoe Silver Lake, Mankato, Northfield, Faribault, St. James, Worthington, Owatonna, Rochester, Albert Lea, Austin Latino Children are Keeping Rural Schools from Closing or Consolidating

  15. Open letter from 500 economists*, June, 2006 “Immigration is a net economic gain for America and its citizens, and the greatest anti-poverty program ever devised” *including 5 Nobel Laureates

  16. President’s Council of Economic Advisors, June, 2007 “On average, US natives benefit from immigration. Immigrants tend to complement (not substitute for) natives, raising natives’ productivity and income.”

  17. Inequitable distribution of fiscal benefits * In the short-term rapid demographic changes cause some stresses * Funds that accrue at the federal and state levels and to large employers of immigrants don’t ‘trickle down’ to localities with high proportions of immigrants

  18. How much do immigrants cost?

  19. Studies often over-state the cost of immigration by measuring costs before adults reach working age High cost investment Low cost investment

  20. Most immigrants pay the same taxes as US-born residents • Income taxes • Property taxes • Sales taxes • Business taxes • Property taxes • Fewer tax breaks

  21. Insufficient Visas

  22. Restrictions Under NAFTA for Meeting the Demand for Workers: • on the one hand, the free flow of capital, goods, and services has been expanded • on the other hand, the flow of labor has been the subject of massive enforcement efforts and legal restrictions Source: US-Mexico Migration Panel, Carnegie Endowment for International Peace, 2001

  23. Percentage of Employment-Based Visas That Were Issued for Low Skilled Jobs: 2002* Workers in less-skilled jobs received only 16 percent of all temporary employment and training visas awarded in 2002. (Paral, 2005) Source: Jachimowicz, 2004

  24. Need to lift the country cap of 26,300 visas

  25. Value of goods exported from the US to Mexico in 2006: $866,000,000,000 Bureau of the Census, Foreign Trade Division,

  26. Aging citizens+ Need for young work force + insufficient visas for workers = large undocumented population and underclass who are major economic contributors to the state & the US

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