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Immigrants: Resource for MN’s Economy
September 2013
Immigrant Contributions to MN’s Economy

•
•
•
•

Workers
Entrepreneurs
Consumers
Connect us to world economy

• Contribut...
Workers

• Immigrant workers = majority of labor force
growth
• 7% of population – 9% of workforce
– 375,000 to 390,000 pe...
Labor Force Growth Will Slow Sharply
Migration Will Be Increasingly Important Re Growing the Labor Force
Net Labor Force Growth

500,000
Total

400,000

Natura...
MN Labor Force % Born in Another Country
14%

12.6%

12%
10%

8.5%

25-34
55-64

8%
6%
4%

4.8%
3.3%

3.1%

3.6%

2%
0%

1...
Immigration to Minnesota Since 1860

375,000 – 390,000 total (about 7% of the population)
Key Workers – Still in Short Supply
(2012-13 Grow MN! Results, N = 697)

Job Type
Construction, Trades Workers
Production ...
What Industries Fueled by Immigrant Workers?
(Top 5)

Source: Migration Policy Institute 2009
Industry

% Foreign-Born

% ...
Minnesota’s Immigrant Population Is Highly Educated

For every “low-skill” immigrant without a high school diploma, MN has...
Worker Shortage: What Do We Do?

• Automate
• Grow elsewhere
• Support in-migration
Entrepreneurs
• 6% of businesses in Minnesota are immigrant-owned
• 5,000 Hispanic-owned (’11)
– Up 125% since 2006
– Sale...
When you think “American”…
Immigrants Start Businesses

• > 40% of Fortune 500 companies started by
immigrants or their children.
• Immigrants starte...
Consumer Power

• Minnesota’s foreign-born: > $5 billion buying power
• Housing market in Minnesota (2000-2010):
– 20% of ...
Economic Stimulus

• +1,000 immigrant professionals:

– +7,100 new jobs by 2020
– +$2.5 billion in personal income by 2045...
Connecting Us to the World

• Foreign investment & expertise key to growth
• MN’s steel & mining industries:
–
–
–
–
–

MN...
Unauthorized Immigrants…No Definitive Data

• 55,000 – 85,000 unauthorized
• Cost: about $176-$188 m per year:
– K12 educa...
Hmong MN Experience
Compiled by Dr. Bruce Corrie, Concordia University, St. Paul

Median Age
College Graduates
Workforce P...
MN’s Economic Reality…2030

• Population ages dramatically
• Labor force growth declines
• New enterprises critical to gro...
QUESTIONS?
COMMENTS?
The Boom Generation Starts Turning 65 in 2011
65+ Passes School Age Around 2020
1,400,000
1,200,000
1,000,000

18-24
65+
5...
Competition for the Future Workforce Will Increase
14%

13.0%

Percent Change 18-24

12%
10%
8%

US
Mn

6.8%

6%

4.5%

4%...
Percent Foreign Born - MN & U.S., 1950-2008
14.00%
12.00%
10.00%
8.00%

Minnesota
U.S.

6.00%
4.00%
2.00%
0.00%
1950 1960 ...
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Immigrants: Resource for MN's Economy

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  • Nothing newer on State Demographer website
  • No more recent data on State website, past 2005/6 ACS.
    For all civilian employed workers aged 16 and older, foreign-born workers represented: 2.4% in 1990; 5.2% in 2001; and 7.8% in 2009. (Migration Policy Institute, ACS data 2009)
  • 2010 Estimate: 378,000 foreign-born in Minnesota, approximately 7% of the state population.
  • I’m cutting finance and insurance, and real estate rental and leasing. It was category 6 on the slide.
    The 2009 numbers are 5.8% foreign-born, 7.4% native-born.
  • All of these companies were founded by an immigrant or their children. Source: Partnership for a New American Economy.
  • Can’t pick which are granted: This means that if you submit 10 applications and get 5 approvals, you have to take those five individuals and give up the other five. There’s no switching visa applications: if the recent college grad gets approved and the senior engineer does not get selected in the lottery for a visa, you’re stuck without your senior engineer.
  • Purchasing power: Selig Institute, University of Georgia. Immigration Policy Center May 2013. http://www.immigrationpolicy.org/sites/default/files/docs/new_americans_in_minnesota_2013_1.pdf.
  • Regional Economic Models, Inc. (REMI, 2013) estimates how many new workers MN would see under the Senate’s proposed reform bill. H-1B visa reform would bring about 1,000 new highly skilled professional immigrants to MN, with the results above. H-2A, H-2B and the new W-1 category availability account for the 8800 new jobs by 2020 and $348M in additional income.
  • Transcript of "Immigrants: Resource for MN's Economy"

    1. 1. Immigrants: Resource for MN’s Economy September 2013
    2. 2. Immigrant Contributions to MN’s Economy • • • • Workers Entrepreneurs Consumers Connect us to world economy • Contributions change over time!
    3. 3. Workers • Immigrant workers = majority of labor force growth • 7% of population – 9% of workforce – 375,000 to 390,000 people – 230,000 workers – 55,000 – 85,000 “unauthorized” • MN growth depends on imported labor
    4. 4. Labor Force Growth Will Slow Sharply
    5. 5. Migration Will Be Increasingly Important Re Growing the Labor Force Net Labor Force Growth 500,000 Total 400,000 Natural Part Rate Migration 300,000 200,000 100,000 0 -100,000 2000-10 State Demographer projection revised 2007 2010-20 2020-30
    6. 6. MN Labor Force % Born in Another Country 14% 12.6% 12% 10% 8.5% 25-34 55-64 8% 6% 4% 4.8% 3.3% 3.1% 3.6% 2% 0% 1990 2000 PUMS microdata from 1990 & 2000 Census & 2006 ACS 2006
    7. 7. Immigration to Minnesota Since 1860 375,000 – 390,000 total (about 7% of the population)
    8. 8. Key Workers – Still in Short Supply (2012-13 Grow MN! Results, N = 697) Job Type Construction, Trades Workers Production and Assembly Architects,Engineers, Cartographers Sales Agents, Real Estate Agents Executives, Managers IT and Web, Actuaries, Statisticians Office Support and Assistants Installation, Maintenance, Automotive Transportation and Moving Personnel HR, Accountants, Finance, Insurance Food Preparers, Chefs, Servers # of Companies Seeking Workers 89 101 64 77 33 41 61 36 27 24 28 % Reporting Unfilled Jobs 14% 14% 9% 9% 7% 7% 6% 5% 5% 4% 4%
    9. 9. What Industries Fueled by Immigrant Workers? (Top 5) Source: Migration Policy Institute 2009 Industry % Foreign-Born % Native- Born Manufacturing 20% 13% Retail Trade 8% 12% Pro’s, Scientific, Management, Admin 14% 9% Education, Health, Social Services 23% 24% Arts, Entertainment, Recreation Accommodation and Food Services 11% 8% TOTAL, TOP 5 76% 66%
    10. 10. Minnesota’s Immigrant Population Is Highly Educated For every “low-skill” immigrant without a high school diploma, MN has 1.25 immigrants with “high skills” – a college degree or more. Skill Level % of Total MN Immigrant Population, 2009 Low Skill (< high school) 21% High Skill (at least a BA) 26% Source: The Geography of Immigrant Skills, Brookings 2011
    11. 11. Worker Shortage: What Do We Do? • Automate • Grow elsewhere • Support in-migration
    12. 12. Entrepreneurs • 6% of businesses in Minnesota are immigrant-owned • 5,000 Hispanic-owned (’11) – Up 125% since 2006 – Sales > $2 billion • 11,370 Asian firms (’07) – Asian-Indian firms = 2400, >4,300 employees – Sales > $2.3 billion • $772 million average annual sales (’06-’10) • Downtown & neighborhood revitalization Source: Minnesota Public Radio 2011, Concordia University 2011, CLAC
    13. 13. When you think “American”…
    14. 14. Immigrants Start Businesses • > 40% of Fortune 500 companies started by immigrants or their children. • Immigrants started 25% of high tech cos. from 1995-2005, creating 450,000 jobs. • Immigrants lead some of MN’s largest companies: 3M, Lifetime Fitness, DeCare, Medtronic, Best Buy & Mosaic. Source: Partnership for a New American Economy, Minneapolis/St. Paul Business Journal
    15. 15. Consumer Power • Minnesota’s foreign-born: > $5 billion buying power • Housing market in Minnesota (2000-2010): – 20% of growth in demand due to immigrants – 44% of rental growth due to immigrants – Depressed neighborhoods stabilized; new residents attracted (including non-immigrants)
    16. 16. Economic Stimulus • +1,000 immigrant professionals: – +7,100 new jobs by 2020 – +$2.5 billion in personal income by 2045 • Reform to seasonal & part-time visas: – 8,800 new jobs – $348 million in personal income by 2020 • Localized effects: – New immigrants may hurt wages of low-skilled native workers, but net economic benefit to U.S. is $80,000 per immigrant.
    17. 17. Connecting Us to the World • Foreign investment & expertise key to growth • MN’s steel & mining industries: – – – – – MN Steel (Nashwauk): India ArcelorMittal Steel (Virginia): India Gerdau Ameristeel (St. Paul): Brazil Duluth Metals (Biwabik): Chile Polymet (Hoyt Lakes): Canada • Immigrants add diversity… that says, “World Economy Welcome Here!”
    18. 18. Unauthorized Immigrants…No Definitive Data • 55,000 – 85,000 unauthorized • Cost: about $176-$188 m per year: – K12 education: $146-158 m – Incarceration: $13 m - Public health care: $17 m - Varies by community • On the other hand: – Annual state & local taxes paid, about $345 m – Limited access to public assistance • Immediate cost < long term benefit
    19. 19. Hmong MN Experience Compiled by Dr. Bruce Corrie, Concordia University, St. Paul Median Age College Graduates Workforce Participation Rate Median Household Income Household Receiving Public Assist Homeownership Rate Median Home Value 1980 37 5% 27% $17,481 67% 12% $85,927 2010 19.7 12.6% 59% $49,400 14% 49% $161,100
    20. 20. MN’s Economic Reality…2030 • Population ages dramatically • Labor force growth declines • New enterprises critical to growth • Needs foreign $$$s & expertise • New Americans key to Minnesota’s growth
    21. 21. QUESTIONS? COMMENTS?
    22. 22. The Boom Generation Starts Turning 65 in 2011 65+ Passes School Age Around 2020 1,400,000 1,200,000 1,000,000 18-24 65+ 5-17 800,000 600,000 400,000 200,000 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 Census counts & State Demographer projection, revised 2007
    23. 23. Competition for the Future Workforce Will Increase 14% 13.0% Percent Change 18-24 12% 10% 8% US Mn 6.8% 6% 4.5% 4% 2% 0% -2% -1.2% -1.6% -4% -2.2% -3.5% -3.0% -6% 2000-05 2005-10 2010-15 Census Bureau US Proj, Mn State Demographer revised 2007 2015-20
    24. 24. Percent Foreign Born - MN & U.S., 1950-2008 14.00% 12.00% 10.00% 8.00% Minnesota U.S. 6.00% 4.00% 2.00% 0.00% 1950 1960 1970 1980 1990 2000 20062008
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