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

THE ECONOMIC NECESSITY OF IMMIGRATION REFORM William A. Blazar, Senior Vice President, MN Chamber of Commerce August 31, 2017

www.mnbic.org 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

WHY IMMIGRATION REFORM? …It’s the economy

IMMIGRANT CONTRIBUTIONS TO MN’S ECONOMY • Workers • Entrepreneurs • Consumers • Connect us to world economy  K ey to MN’s development & growth

Population and Workforce • In 2040 the Projected Annual Population Change number of in Minnesota, 2015-2070 deaths in the Natural Change (Births - Deaths) Net Migration 35,000 state > than the 30,000 number of births 25,000 20,000 15,000 • Minnesota will 10,000 5,000 become 0 -5,000 dependent upon -10,000 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 in-migration for population Note: Calculations based on data from Minnesota State Demographic Center, Minnesota growth Population Projections (2015-2070), August 2015 Report and appendices available for download at http://z.umn.edu/immigrantworkforce

International Migration Driving Growth Average Annual Net Migration to Minnesota 14000 11935 12000 9344 10000 7577 8000 6000 2005-2010 3251 4000 2010-2013 2000 Domestic Net 0 Total Net International Net -2000 -4000 -4358 -6000 -6093 -8000 Source: U.S. Census Bureau, Population Estimates Program, Minnesota State Demographic Center

MN’s Foreign Born -- Getting Younger 14% 12.6% 12% 10% 8.5% 25-34 8% 55-64 6% 4.8% 3.6% 3.3% 4% 3.1% 2% 0% 1990 2000 2006 PUMS micro data from 1990 & 2000 Census & 2006 ACS

Slowing Labor Force Growth • Worsening gap Actual and Projected Minnesota Labor Force and Employment, 1990-2024 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 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

EDUCATION: MN’S IMMIGRANTS, 2 EXTREMES Immigrant Education Levels Native Education Levels Graduate degree 14.7 10.4 Bachelor's 32.3 43.8 21.7 18.7 GED, some college, or AA 22.7 HS diploma 35.6 or less

Workers at SterilMed Maple Grove, MN

ENTREPRENEURS 6% of MN businesses are immigrant-owned. • 16,000+ Immigrant Entrepreneurs • $289 million in sales, 2014 • 60,000 employed, 2007 Neighborhood revitalization South St. Paul Susan Rani, Rani Engineering Minneapolis MPR 2011, Concordia University 2011, CLAC, LEDC

MN FORTUNE 500 COMPANIES (2017) WHAT DO THEY HAVE IN COMMON? State Ranking State Ranking Company Name Company Name Fortune 500 Ranking Fortune 500 Ranking Revenues ($ billions) Revenues ($ billions) 1 1 United Health Group United Health Group 6 6 184 184 2 2 Target Corporation Target Corporation 38 38 69.5 69.5 3 3 Best Buy Best Buy 72 72 39.4 39.4 4 4 CHS CHS 93 93 30.4 30.4 5 5 3M 3M 94 94 30.1 30.1 6 6 U.S. Bancorp U.S. Bancorp 125 125 22.7 22.7 7 7 Supervalu Supervalu 158 158 17.5 17.5 8 8 General Mills General Mills 165 165 16.6 16.6 9 9 Land O’ Lakes Land O’ Lakes 209 209 13.2 13.2 10 10 Ecolab Ecolab 211 211 13.2 13.2 11 11 C.H. Robinson Worldwide C.H. Robinson Worldwide 212 212 13.1 13.1 12 12 Ameriprise Financial Ameriprise Financial 239 239 11.7 11.7 13 13 Xcel Energy Xcel Energy 256 256 11.1 11.1 14 14 Hormel Foods Hormel Foods 295 295 9.5 9.5 15 15 Thrivent Financial Thrivent Financial 316 316 8.8 8.8 16 16 Mosaic Mosaic 377 377 7.2 7.2 17 17 St. Jude Medical* St. Jude Medical* 434 434 6 6 18 18 Patterson Companies Patterson Companies 466 466 5.6 5.6 *St. Jude Medical sold in early 2017; will not appear on 2018 list Source: Twin Cities Business Magazine http://tcbmag.com/news/articles/2017/june/minnesota%E2%80%99s-presence-(unexpectedly)-grows-on-2017

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

AND, THEY START & GROW NEW ONES! Mo Saremi, Founder & CEO, Iranian-American “Cosmetics maker Bell Labs expands again in Eagan, adding 50 jobs” ---StarTribune, June 2017

CONSUMER POWER Minnesota’s immigrants have consumer power over $8.9 Billion per year .

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 (Fergus Falls, etc): Mexico – JBS (Worthington): Brazil – Gold n’ Plump (St. Cloud): Brazil Immigrants add diversity that says, “World Economy Welcome Here!”

IMMIGRANTS: 1st CONGRESSIONAL DISTRICT 1 st District 1 st District Share 2014 Minnesota of Total Immigrant 37,166 437,544 8.5% Population % of Total 5.6% 8% --- Population % of Total 9% --- Workforce 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 17

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

CONTRIBUTIONS CHANGE OVER TIME HMONG MN 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 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

Immigrants in Minnesota… …An Old Story Foreign Born Population in the United States & MN, 1850-2010 • MN was an immigrant United States Midwest Minnesota 40 state…well 35 into 20 th 30 century! 25 Percentage 20 15 • The current 10 trend is not 5 0 new…& we 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 thrived. Report and appendices available for download at http://z.umn.edu/immigrantworkforce

Immigration Reform… 4 PARTS • Streamline Administration  E-Verify = Employment eligibility verification  Issuance of work-related visas • 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

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

Minnesota’s Immigrants: a resource for our economy