THE ECONOMIC NECESSITY OF IMMIGRATION REFORM William A. Blazar, - - PowerPoint PPT Presentation

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THE ECONOMIC NECESSITY OF IMMIGRATION REFORM William A. Blazar, - - PowerPoint PPT Presentation

Oct 13, 2023 290 likes •605 views

THE ECONOMIC NECESSITY OF IMMIGRATION REFORM William A. Blazar, Senior Vice President, MN Chamber of Commerce Maura G. Donovan, Executive Director, Economic Development, University of Minnesota www.mnbic.org MN BUSINESS IMMIGRATION COALITION

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THE ECONOMIC NECESSITY OF IMMIGRATION REFORM

William A. Blazar, Senior Vice President, MN Chamber of Commerce Maura G. Donovan, Executive Director, Economic Development, University of Minnesota

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SLIDE 2

MN BUSINESS IMMIGRATION COALITION

  • Broad base…chambers, agriculture, hospitality,

food processing

  • Education…5 reports since 2009
  • Statewide forums…build understanding & support
  • Federal reform principles 2013: broad support
  • State policy…appears unavoidable & challenging

www.mnbic.org

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WHY IMMIGRATION REFORM?

…It’s the economy

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IMMIGRANT CONTRIBUTIONS TO MN’S ECONOMY

  • Workers
  • Entrepreneurs
  • Consumers
  • Connect us to world economy

 Key to MN’s development & growth

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SLIDE 5

Report: Immigrants and Minnesota's Workforce

January 2017

The Committee on Minnesota Workforce & Immigrants

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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SLIDE 6

Minnesota Population Trends

  • Population projected

to grow at slower rate beginning 2030

  • Population will age &

become more diverse but not evenly across the state

Projected Change in MN Population by County (2015-2045)

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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SLIDE 7

Population and Workforce

  • 10,000
  • 5,000

5,000 10,000 15,000 20,000 25,000 30,000 35,000 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 2057 2059 2061 2063 2065 2067 2069 Natural Change (Births - Deaths) Net Migration

Note: Calculations based on data from Minnesota State Demographic Center, Minnesota Population Projections (2015-2070), August 2015

Projected Annual Population Change in Minnesota, 2015-2070

  • In 2040 the

number of deaths in the state > than the number of births

  • Minnesota will

become dependent upon in-migration for population growth

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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International Migration Driving Growth

3251 9344

  • 6093

7577 11935

  • 4358
  • 8000
  • 6000
  • 4000
  • 2000

2000 4000 6000 8000 10000 12000 14000

2005-2010 2010-2013 Total Net International Net Domestic Net Average Annual Net Migration to Minnesota

Source: U.S. Census Bureau, Population Estimates Program, Minnesota State Demographic Center

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Immigrants in Minnesota

  • MN lags U.S. in

foreign born population

  • Minnesota’s

foreign born population includes a large number of refugees

Foreign Born Population in the United States & Minnesota, 1970-2010

2 4 6 8 10 12 14 1970 1980 1990 2000 2010 Percentage

United States Midwest Minnesota

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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Slowing Labor Force Growth

  • Worsening gap

between the number of jobs available in Minnesota and the number of workers present to work at those jobs

  • Shortage of

workers could decrease economic growth

Actual and Projected Minnesota Labor Force and Employment, 1990-2024

Note: Based on historical and projected employment and labor force data by the Minnesota Department of Employment and Economic Development.

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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An Immigrant Workforce

  • Future strength of

economy depends on attracting & integrating immigrants into workforce

  • MN must use existing

human capital & increase skills for immigrants

Foreign Born Population in MN by County (2010-2014) Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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WORKER SHORTAGE: WHAT DO WE DO?

  • Automate
  • Grow elsewhere
  • Support in-migration
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EDUCATION: MN’S IMMIGRANTS, 2 EXTREMES 14.7 18.7

22.7 43.8

Immigrant Education Levels

Graduate degree Bachelor's GED, some college, or AA HS diploma

  • r less

10.4 21.7 35.6 32.3

Native Education Levels

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Workers at SterilMed Maple Grove, MN

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INDUSTRIES FUELED BY IMMIGRANT WORKERS

Industry % of Foreign- Born workers working in the industry % of Native-Born workers working in the industry Manufacturing

20% 13%

Retail Trade

8% 12%

Professional, Scientific, Management and Admin

14% 9%

Education, Health and Social Services

23% 24%

Arts/Entertainment, Recreation, Accommodation and Food Service

11% 8%

Source: Migration Policy Institute 2009

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Job Type # of Companies Seeking Workers % Companies Reporting Recruitment Difficulty Construction, Trades Workers 76 83% Production and Assembly 73 85% Architect, Engineer, Cartographer 43 93% Sales Agents, Real Estate Agents 49 82% Installation, Maintenance, Automotive 23 95% Executives, Managers 34 76% Healthcare Support Personnel 26 96% Transportation and Moving Personnel 19 95% Office Support and Assistants 40 82% Food Preparers, Chefs, Servers 23 89% IT and Web, Actuaries, Statisticians 21 76%

KEY WORKERS – IN SHORT SUPPLY

(2015-16 Grow MN! Results, N = 436)

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ENTREPRENEURS

6% of MN businesses are immigrant-owned.

MPR 2011, Concordia University 2011, CLAC, LEDC

  • 16,000+ Immigrant Entrepreneurs
  • $289 million in sales, 2014
  • 60,000 employed, 2007

Neighborhood revitalization South St. Paul Susan Rani, Rani Engineering Minneapolis

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SLIDE 18

Source: Twin Cities Business Magazine http://tcbmag.com/News/Recent-News/2016/June/Minnesota-Company-Cracks-Fortune-500-Top-Ten-For-F

FORTUNE 500 COMPANIES IN MN (2016)

State Ranking Company Name Fortune 500 Ranking Revenues ($ billions) 1 United Health Group 6 157 2 Target Corporation 38 73.8 3 Best Buy 71 39.7 4 CHS 84 34.6 5 3M 93 30.3 6 U.S. Bancorp 131 21.5 7 Supervalu 160 17.8 8 General Mills 161 17.6 9 Ecolab 206 13.5 10 C.H. Robinson Worldwide 208 13.5 11 Land O’ Lakes 215 13.1 12 Ameriprise Financial 232 12.2 13 Xcel Energy 257 11 14 Hormel Foods 304 9.3 15 Mosaic 316 8.9 16 Thrivent Financial 318 8.7

WHAT DO THEY HAVE IN COMMON?

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IMMIGRANTS LEAD MAJOR MN BUSINESSES

38.9% of Fortune 500 companies in Minnesota were

started by immigrants or their children.  more than 264,000 jobs  annual revenue over $100 billion Immigrants lead 3M, Lifetime Fitness, Medtronic, Best Buy, Mosaic, DeCare…

Source: Partnership for a New American Economy, Minneapolis/St. Paul Business Journal

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CONSUMER POWER

Minnesota’s immigrants have consumer power over

$8.9 Billion

per year.

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CONNECTING MN TO THE WORLD Foreign investment & expertise are key to growth.

  • MN’s steel & mining industries:

– ArcelorMittal Steel (Virginia): India – Gerdau (St. Paul): Brazil – Twin Metals (Biwabik): Chile – Polymet (Hoyt Lakes): Canada

  • Food processing:

– Faribault Foods (Faribault): Mexico – Bimbo Bakeries (Twin Cities): Mexico – JBS (Worthington) Brazil

Immigrants add diversity that says, “World Economy Welcome Here!”

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MN’S ECONOMIC REALITY…2030

  • Population ages…Labor force growth declines
  • New enterprises critical to growth
  • “Main Street” needs more shoppers
  • Need foreign $$$ & expertise

 Immigrants KEY to MN development & growth

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CONTRIBUTIONS CHANGE OVER TIME

1980 2010

Median Age

37 19.7

College Graduates

5% 12.6%

Workforce Participation Rate

27% 59%

Median Household Income

$17,481 $49,400

Household Receiving Public Assist

67% 14%

Homeownership Rate

12% 49%

Median Home Value

$85,927 $161,100

Compiled by Dr. Bruce Corrie, Concordia University, St. Paul

HMONG MN EXPERIENCE

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IMMIGRANTS: 1st CONGRESSIONAL DISTRICT

2014 1st District Minnesota 1st District Share

  • f Total

Immigrant Population 37,166 437,544 8.5% % of Total Population 5.6% 8% Taxes Paid $283 million $3.3 billion 8.6% Retail Spending $771 million $8.9 billion 8.7% Entrepreneurs 757 16,244 4.7%

Source: Partnership for New American Economy 24

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Immigrants in Minnesota… …An Old Story

  • MN was an

immigrant state…well into 20th century!

  • The current

trend is not new…& we thrived.

Foreign Born Population in the United States & MN, 1850-2010

5 10 15 20 25 30 35 40 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Percentage

United States Midwest Minnesota

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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4 PARTS

Immigration Reform…

  • Streamline Administration

✓ E-Verify = Employment eligibility verification

  • Responsiveness to economic change

✓ Replace fixed quotas with dynamic system ✓ More visas for skilled workers, STEM ✓ Recognize differences among industries, e.g. agriculture

  • Earned status for unauthorized workers
  • Secure borders = See above
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Immigrants & Community Integration

What can Minnesota do to make itself a more attractive place for immigrants?

  • Develop a strategy-important to have community focused

conversations

  • Education: retaining foreign students, recognizing foreign

credentialing, investing in workers (e.g., English).

  • Addressing racial disparities
  • Diffusing social tensions, managing conflicts
  • Recognizing and coordinating key roles: local government

and community organizations, and employers

Report and appendices available for download at http://z.umn.edu/immigrantworkforce

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Minnesota’s Immigrants: a resource for our economy

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QUESTIONS & COMMENTS

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WORKERS MN’s labor force growth depends on imported labor

  • Immigrants = most of our labor force growth
  • 7% of population; 9% of workforce
  • About 400,000 individuals
  • 230,000 workers
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FOREIGN BORN MN’S: GETTING YOUNGER

3.3% 8.5% 12.6% 3.1% 3.6% 4.8% 0% 2% 4% 6% 8% 10% 12% 14%

1990 2000 2006 25-34 55-64

PUMS micro data from 1990 & 2000 Census & 2006 ACS