Immigration and the National Economy

The economy of the United States has always been tightly woven with the contributions and labors of immigrants to this country. From the Bracero program to today’s H2-b agricultural workers and highly skilled h1-b temporary workers, the fabric of our economic welfare is tied into immigrant labor and their economic contribution. Increasingly, as we begin to feel the effects of a global recession, immigrants are often blamed for the ills of our economy. The following links provide useful information on the contributions of immigrants to the United States Economy (opens in PDF):

The Economic Impact of State and Local Immigration
The Economic Impact of Immigration
Immigration and the Economy
What kind of Work do Immigrants do?

Immigration and the State Economy

Locally, Minnesota will have an increasing dependency on migrant workers. According to State Economist Tom Stinson, Minnesota’s workforce is beginning to decline as the generation known as the Baby Boomers begins to retire. Despite the recent economic downturn, Minnesota’s labor force will come to depend on foreign workers to keep labor output at current levels. Without these additional workers, the standard of living that Minnesotans know today will begin to fall.

According to Census estimates, in 2008 the Latino population in Minnesota reached 205,896 compared with 195,138 the year before. Minnesota now has 205,896 residents identified as Latinos, compared to 195,138 one year ago.

In addition, the undocumented population is making a huge economic impact on Minnesota’s economy. According to HACER, there are at least 18,000 and probably as many as 48,000 undocumented workers laboring in selected industries in Minnesota. If the undocumented workers were removed from Minnesota, economic growth would be suddenly reduced by 40%.

More information on the impact of undocumented workers

Immigration and the Local Economy

Latinos are having a profound effect on our local economy. One need look no farther than Lake Street in Minneapolis to see thriving local Latino Businesses, that are boosting the local economy, bringing diversity to the local culture and creating safe, healthy neighborhoods.

Here are some facts on Lake Street from the Latino Economic Development Center:

• In 1996, there were 4 Latino-owned businesses on Lake Street, as of September 5, 2007 there were 253.
• These businesses pay an average rent of $900 per space, totaling $2,732,400 on rent annually. This number does not account for utilities, leasehold improvements, individual security, etc.
• The total number of vendors benefiting from Latino-owned businesses equals 2,530.
• These businesses employ at least 854 people. If 60% of those employees earned $9.hour and 40% earned $7.50, then annual payroll would equal $15,986,880.
• There are at least 16 Latino-owned buildings in the Lake Street area. The average price of these buildings is $900,000.
• Latinos own $14,400,000 of real estate on Lake St. and pay an average of 25% property taxes. This equals more than $3,600,000 annually.
• There are 13 malls/shopping centers/bazaars/markets on Lake Street. This equals about a mall every two blocks, most of them are with Latino only businesses.
• The largest Mall on Lake Street contains 75 Latino-owned businesses.
• According to Augsburg College, more sales tax is collected on Lake Street than at the Mall of America.