Immigrants: Resource for Minnesota's Economy

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Immigrants: Resource for Minnesota's Economy

  1. 1. Immigrants: Resource for MN’s Economy November 2009
  2. 2. Immigrant Contributions to MN’s Economy <ul><li>Workers </li></ul><ul><li>Entrepreneurs </li></ul><ul><li>Consumers </li></ul><ul><li>Contributions change over time! </li></ul>
  3. 3. Workers <ul><li>Immigrant wkrs = majority of labor force growth </li></ul><ul><li>6.5% of population – 8% of workforce </li></ul><ul><ul><li>370,000 people </li></ul></ul><ul><ul><li>240,000 workers </li></ul></ul><ul><ul><li>60,000 – 80,000 undocumented </li></ul></ul><ul><li>MN growth depends on imported labor </li></ul>
  4. 4. Labor Force Growth Will Slow Sharply
  5. 5. Migration Will Be Increasingly Important Re Growing the Labor Force State Demographer projection revised 2007
  6. 6. Vacancies…Even in Recession Source: Grow Minnesota! Annual Report, 2008-2009
  7. 7. Warning! Trespassers Will Be Recruited
  8. 8. What Industries Fueled by Immigrant Works? (Top 5) Source: Migration Policy Institute 2006 66% 76% TOTAL, TOP 5 8% 13% Arts, Entertainment, Recreation 23% 21% Education, Heallth, Social Services 9% 12% Pro’s, Scientific, Management, Admin 12% 8% Retail Trade 14% 22% Manufacturing % Native- Born % Foreign-Born Industry
  9. 9. MN Industries with Greatest Concentrations of Foreign-Born Workers (2006, >5000 Total ee’s) <ul><li>Mfg.- food/vegetable processing </li></ul><ul><li>Mfg.- animal slaughtering & processing </li></ul><ul><li>Prof. services to buildings & dwellings </li></ul><ul><li>Retail - specialty foods </li></ul><ul><li>Mfg.- medical equipment & supplies </li></ul><ul><li>Mfg.- electro medical & control instruments </li></ul><ul><li>Retail - used merchandise </li></ul>
  10. 10. MN Will See a 30% Jump in Workers Turning Age 62 Beginning 2008 2005 ACS
  11. 11. MN Labor Force % Born in Another Country PUMS microdata from 1990 & 2000 Census & 2006 ACS
  12. 13. Worker Shortage: What Do We Do? <ul><li>Automate </li></ul><ul><li>Grow elsewhere </li></ul><ul><li>Support in-migration </li></ul>
  13. 14. Entrepreneurs <ul><li>3% of businesses immigrant owned </li></ul><ul><ul><li>Hispanic-owned up 350% since ’90 </li></ul></ul><ul><ul><li>Asian-Indian firms = 400, >4,000 employees </li></ul></ul><ul><li>$331 million in net income </li></ul><ul><li>Downtown & neighborhood revitalization </li></ul>
  14. 15. Consumers <ul><li>Latinos: $4 b (up 694% since 1990) </li></ul><ul><li>Asians: $4.9 b (up 524% since 1990) </li></ul><ul><li>Growth in buying (’90-’08 national ranking) </li></ul><ul><ul><li>9 th highest for Asians </li></ul></ul><ul><ul><li>8 th highest for Hispanics </li></ul></ul><ul><li>6% of retail sales (2007) </li></ul>
  15. 16. Economic Stimulus <ul><li>Statewide immigrants leverage: </li></ul><ul><ul><li>24,000 jobs & </li></ul></ul><ul><ul><li>$1.2 billion personal income </li></ul></ul><ul><li>Native-born wages up, except those without high school diploma </li></ul><ul><li>South Central MN: </li></ul><ul><ul><li>2,600 Latino wkrs sustain 3,770 N-Latino jobs </li></ul></ul><ul><ul><li>Include Latino consumption, add 4,100 more </li></ul></ul>
  16. 17. Illegal Immigrants… No Definitive Data <ul><li>60,000 – 80,000 undocumented </li></ul><ul><li>Approx cost: $176-$188 m per year: </li></ul><ul><ul><li>$146-158 m – K12 education </li></ul></ul><ul><ul><li>$17 m – public assistance health care </li></ul></ul><ul><ul><li>$13 m – incarceration </li></ul></ul><ul><li>Cost varies greatly by community </li></ul><ul><li>Immediate cost < long term benefit </li></ul>
  17. 18. MN’s Economic Realty…2030 <ul><li>Population ages dramatically </li></ul><ul><li>Labor force growth declines </li></ul><ul><li>New enterprises critical to growth </li></ul><ul><li>New Americans key to MN growth </li></ul>
  18. 19. MN’s Immigrant Opportunity: Who Can Help? <ul><li>U.S. Congress </li></ul><ul><li>Education: Higher Ed, Workforce Dev </li></ul><ul><li>Employers </li></ul><ul><li>State Legislature & Governor? </li></ul>
  19. 20. QUESTIONS? COMMENTS?
  20. 21. The Boom Generation Starts Turning 65 in 2011 65+ Passes School Age Around 2020 Census counts & State Demographer projection, revised 2007
  21. 22. Competition for the Future Workforce Will Increase Census Bureau US Proj, Mn State Demographer revised 2007
  22. 23. MN’s ’06 Foreign Born Workforce Was 240,000 or 8% of the Total Workforce 2006 ACS

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