labor market integration of boston’s foreign born

Boston Redevelopment Authority John F. Palmieri, Director

City of Boston Thomas M. Menino, Mayor

presentation at the ONB summit planning meeting

October, 2008

labor market integration of boston’s foreign born

alvaro lima director of research, Boston Redevelopment Authority

 immigration policies in the U.S. have been almost entirely focused on procedures and prohibitions governing admissions:

Who? How many? What kind?

 the settlement, adaptation, and progress of immigrants is largely up to them:

economic, political

and social integration

… integration policies are

skeletal, ad hoc, under-funded

and dominated by the ideology

of assimilation…

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let’s take a look at LABOR MARKET

INTEGRATION

Source: 2006 American Community Survey, BRA Research Division Analysis

Nativity Breakdown-Metro Boston’s Workforce- 2000 and 2006

 between 2000 and 2006, Metro Boston’s foreign-born workforce increased by almost 94,000 people (an absolute increase of approximately 32%):

  two aspects - educational attainment and language proficiency are key to the economic integration of the growing immigrant workforce:

  Overall, there are significant differences in the educational levels of Metro Boston’s native and foreign-born workforces;

  18% of Metro Boston’s foreign-born workforce has less that a high school education, compared to 6% of the native-born work-force;

  Close to ½ of the native-born workforce has a 4-year college degree or higher compared to 38% for the foreign-born workforce;

Educational Attainment by Nativity Status-Metro Boston’s Workforce

Source: 2006 American Community Survey, BRA Research Division Analysis

Source: 2006 American Community Survey, BRA Research Division Analysis

English Language Skills-Metro Boston’s Workforce- 2000 and 2006

  in 2000, close to 55,000 members of Metro Boston’s workforce had limited English language skills (LEP);

  by 2006, close to 88,000 members of Metro Boston’s workforce could be defined as having limited English language skills;

  during this period , the foreign-born workforce grew 32% while the workforce with limited English language skills grew 37%;

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  the foreign-born are over-represented in service and production occupations and under-represented in managerial and professional occupations.

Occupational Distribution – Boston’s Foreign-Born vs. Native-Born Workforce (2000)

*Universe: Labor Force (16 years and older) Sources: U.S. Census 2000, PUMS (5%) Sample, BRA Research Division Analysis

These results lend support to assertions that English language proficiency will become a significant economic issue as the foreign-born population begins to fill critical job vacancies.

Source: 2006 American Community Survey, BRA Research Division Analysis

Characteristics of the 2004 Labor Market

All Jobs by Language Skill Requirement in Metro Boston-2004

Low

Employment 19%

Average wage $25,043

Medium-Low

Employment 30%

Average wage $33,145

Medium-High

Employment 34%

Average wage $53,680

High

Employment 17%

Average wage $71,117

Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.

•  Overall, 64% of all jobs in the labor market fall in the medium-low or medium-high language skill categories.

•  There is a clear connection between language skill requirements and salary. •  The highest language skill category pays almost 3 times more than the

lowest language skill category.

•  While there are jobs available to people with limited language skill, these jobs pay dramatically less than jobs requiring even modest language skills.

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Characteristics of Expected New Jobs for 2014

Projected New Jobs (2004-2014) by Language Skill Requirement

Low

3% Growth

7% of New Jobs

Average wage $17,998

Medium-Low

6% Growth

20% of New Jobs

Average wage $29,079

Medium-High

11% Growth

41% of New Jobs

Average wage $57,930

High

16% Growth

32% of New Jobs

Average wage $74,109

Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.

•  The number of new jobs created in our region available to people with limited language skills will be severely limited.

•  93% of new jobs created in the region will require at least modest language skills.

•  Projected growth is much smaller in occupations requiring low and medium-low language skill as compared to medium-high and high language skill.

•  New jobs in the highest language skill category pay more than 4 times better than new jobs in the lowest language skill category.

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Language Skill Requirements in the Labor Market-Current and New Jobs

Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.���

Language Skill Low Medium-Low Medium-High High

Wages-Current Jobs

$25,043 $33,145 $53,680 $71,117

Wages-New Jobs $17,998 $29,079 $57,930 $74,109

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Conclusions •  These data demonstrate that the foreign-born workforce

and the workforce with limited English skills continues to grow in our region. •  Consistent with recent trends and previous research.

•  Population trends indicate immigrants will likely be relied on to fill critical job vacancies in our region in the future. •  Human capital concerns.

•  At the same time, we see significant disparities in the proportion, pay, and growth rates of occupations requiring low language skill and those that require advanced language skill. •  Quality of life issues for those with limited English skills.

•  These data underscore the importance of ESOL courses. •  High demand for these classes—large waiting lists.

•  Language skills in Greater Boston’s foreign-born workforce is both an economic development issue for the region, as well as a quality of life issue for a growing segment of the region’s population.

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right now- 15,000 immigrants

are on ESOL waitlists in the Commonwealth

for anywhere from 6 months to 3 years Source: Department of Education (DOE), 2008; “The ESL Logjam,” National Association of Latino Elected and Appointed Officials

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Metro Boston’s foreign-born workforce increased by almost

94,000 (32%) between 2000 and 2006…

Source: 2006 American Community Survey, BRA Research Division Analysis

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Source: 2006 American Community Survey, BRA Research Division Analysis

In 2006 the number of Metro Boston’s workforce with limited English

language skills was nearly 88,000 - an increase of 37% over 2000…

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now imagine -

ZERO

ESOL waitlists

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Key Characteristics of Occupations by Language Skill Requirements – All Industries

Average Salary

19% 30% 34% 17%

$25,043 $71,117 $53,680 $33,145

Low Medium-Low Medium-High High

If these 88,000 workers were to move up one level…

Note: Metro-Boston 2004

Source: Labor Market Assessment Tool, Boston Redevelopment Authority, Research Division, Analysis

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it would look something like

this…. direct and indirect income increases by $732 million

increased spending creates 1,134 new jobs

GRP increases by $108 million

$9 million more in federal, state and local revenues

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keeping the

status quo is not sustainable…

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  more than 10 million skilled workers will be leaving the workforce by 2010

  the Baby Boom generation just hit 62 and is filing for Social Security benefits

  the ratio of seniors to prime-working-age adults is expected to grow from 240 to 411 per 1,000

  immigrants will be expected to fill this growing gap in the labor market

  … and 93% of new jobs created in the region will require at least modest language skills

Source: 2004 U.S. Bureau of Labor Statistics (BLS)

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Source: Labor Market Assessment Tool, Boston Redevelopment Authority Research Division Analysis.

Language Skill Low Medium-Low Medium-High High

Wages-Current Jobs

$25,043 $33,145 $53,680 $71,117

Wages-New Jobs $17,998 $29,079 $57,930 $74,109

… that is, employment

growth is much smaller in

occupations requiring low

and medium-low language skills

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so, … additional investment in ESOL

would raise productivity boost GRP

raise HH incomes and increase

government revenues