the economic contributions of immigrants in minnesota
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The Economic Contributions of Immigrants in Minnesota - Specifically in St. Paul, MNTRANSCRIPT
The Economic Contributions of Immigrants in Minnesota
June 12, 2014Sarah Radosevich
Policy Research Analyst
Hmongtown MarketplaceRice Street and Como Avenue, Saint Paul MN
Ethnic Market Series, Christina Corrie
Eritrean Community Center University Avenue
Super Mercado La GuadalupanaCesar Chavez Street
Immigrants are an important presence in St. Paul and MN.
• How many are there ? • Where do they come from? • Where in Minnesota do they live?
Minnesota’s foreign-born population
375-390,000 (7% of pop) 46% citizens31-40% authorized
noncitizens8.9% refugees 14-23% unauthorized
(55-85K)
Migration Policy Institute (2013) Data Hub
Minnesota’s foreign born population has increased in every region of the state.
Foreign-born percentage of the population by region in Minnesota
1990 2007-2011
Central 0.90 2.30
Northland 1.80 1.90
Northwest 1.20 2.00
Southern 1.60 4.60
Southwest 1.00 4.00
Twin Cities 3.80 10.60
West Central 1.20 2.10
OVERALL 2.60% 7.10%
Minnesota Compass, American Communities Survey
Saint Paul
17.9% of St. Paul’s residents were foreign-born in 2011.
This was higher than Minneapolis (15.2%) and all cities in Minnesota except Brooklyn Center, Brooklyn Park and Richfield.
Q: Why are immigrants important to Saint Paul’s economy?
Immigrant Capital Framework
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
Minnesota’s demographic situation
American Communities Survey 2009-2011
The human capital of immigrants – now and in the future – will be important to Minnesota’s workforce and economic success.
Immigrants as workers
About 230,000 immigrant workers in Minnesota - 9% of the workforce.
Immigrants complement the native workforce with different educational characteristics:
Immigrants as workers
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
Immigration reverses the brain drain: 2007-2010
Among individuals 25 years or older with a bachelor’s degree or more: • 24,033 came to Minnesota• 25,369 left Minnesota
= 1,336 net loss
4,324 educated immigrants came to Minnesota over the same span.
Job Type# of Companies
Seeking Workers% Reporting Unfilled Jobs
Construction, Trades Workers 89 14%Production and Assembly 101 14%Architects,Engineers, Cartographers 64 9%Sales Agents, Real Estate Agents 77 9%Executives, Managers 33 7%IT and Web, Actuaries, Statisticians 41 7%Office Support and Assistants 61 6%Installation, Maintenance, Automotive 36 5%Transportation and Moving Personnel 27 5%HR, Accountants, Finance, Insurance 24 4%Food Preparers, Chefs, Servers 28 4%
Key Workers – Still in Short Supply(2012-13 Grow MN! Results, N = 697)
Immigrant Entrepreneurs
44,500 immigrant-owned businesses in Minnesota– Statewide (6%), concentrated in Metro (11%)– 49% of grocery store owners; 65% of taxi owners– High growth– More likely to export: 7.7% vs 4.4%
Immigrants as consumers
Immigrant buying power in MN is over $5 billion per year– Asian Indian ($1 b)– Mexican ($600 m)– African ($1.4 b)
Asian and Latino buying power in Saint Paul is $863 million. – Minneapolis ($705 m)– Worthington ($46 m), St. Cloud ($45 m)
Where immigrants move in, neighborhoods see less crime, rising home values, and new demand. – 2000-2010: immigrants contributed 20% of the growth in
homeownership and 44% of the growth in the rental market
Immigrants as taxpayers
As taxpayers immigrants pay
$793 million per year
in state and local taxes.
Global Networks and Cultural Assets
Over one million firms in the U.S. conducted business in Spanish in 2007; over 57,000 in Vietnamese; and over 130,000 in Chinese. Who helps them do this?
Immigrant human capital
Projected lifetime earnings of MN’s 21,496 immigrant high school students:
$52 billion
• Human capital: the value of a person’s labor, education, skills, and cultural and personal attributes such as creativity.
MN Hmong Experience
1980 2010
Median Age 37 19.7
College Graduates 5% 12.6%
Workforce Participation Rate 27% 59%
Median Household Income $17,481 $49,400
Households Receiving Public Assist
67% 14%
Homeownership Rate 12% 49%
Median Home Value $85,927 $161,100Compiled by Dr. Bruce Corrie, Concordia University,
St. Paul
Immigrant human capital
• In Saint Paul public schools, 33% of students are English language learners (ELL). They speak over 100 languages and dialects.
• Immigrant children require investment, but pay it back over a lifetime.
What are the net costs and benefits?
National Research Council: +$80,000 per immigrant– Long-term benefits outweigh short-term costs– 2006 MN Legislative Auditor report finds similar results for
Minnesota
NRC and Peri: short-term crowd out (1-2 years) of less educated workers, then gains in jobs, wages, productivity (7-10 years)
Q: Do immigrants take jobs from native residents? Q: Do they cost taxpayers or the government money?
Net costs and benefits: Minnesota
Recent Minnesota cost and benefit estimates: • Health care + public assistance cost = $420
million • Education cost = $438 million
• State and local tax payments = $793 million
• Economic activity = up to $5 billion
By one estimate, unauthorized immigrants cost MN $176-188 million per year…but their state & local taxes paid = $345 million per year.
One key takeaway
The biggest determinant of net benefit is productivity: education and training change the entire picture.
In summary
• Immigrants make multi-dimensional contributions to Saint Paul’s economy
• Long-term benefits outweigh short-term costs