1. Immigrants: Resource for MN’s Economy
September 2013

2. Immigrant Contributions to MN’s Economy
•
•
•
•
Workers
Entrepreneurs
Consumers
Connect us to world economy
• Contributions change over time!

3. Workers
• Immigrant workers = majority of labor force
growth
• 7% of population – 9% of workforce
– 375,000 to 390,000 people
– 230,000 workers
– 55,000 – 85,000 “unauthorized”
• MN growth depends on imported labor

4. Labor Force Growth Will Slow Sharply

5. Migration Will Be Increasingly Important Re Growing the Labor Force
Net Labor Force Growth
500,000
Total
400,000
Natural
Part Rate
Migration
300,000
200,000
100,000
0
-100,000
2000-10
State Demographer projection revised 2007
2010-20
2020-30

6. MN Labor Force % Born in Another Country
14%
12.6%
12%
10%
8.5%
25-34
55-64
8%
6%
4%
4.8%
3.3%
3.1%
3.6%
2%
0%
1990
2000
PUMS microdata from 1990 & 2000 Census & 2006 ACS
2006

7. Immigration to Minnesota Since 1860
375,000 – 390,000 total (about 7% of the population)

8. Key Workers – Still in Short Supply
(2012-13 Grow MN! Results, N = 697)
Job Type
Construction, Trades Workers
Production and Assembly
Architects,Engineers, Cartographers
Sales Agents, Real Estate Agents
Executives, Managers
IT and Web, Actuaries, Statisticians
Office Support and Assistants
Installation, Maintenance, Automotive
Transportation and Moving Personnel
HR, Accountants, Finance, Insurance
Food Preparers, Chefs, Servers
# of Companies
Seeking Workers
89
101
64
77
33
41
61
36
27
24
28
% Reporting
Unfilled Jobs
14%
14%
9%
9%
7%
7%
6%
5%
5%
4%
4%

9. What Industries Fueled by Immigrant Workers?
(Top 5)
Source: Migration Policy Institute 2009
Industry
% Foreign-Born
% Native- Born
Manufacturing
20%
13%
Retail Trade
8%
12%
Pro’s, Scientific, Management, Admin
14%
9%
Education, Health, Social Services
23%
24%
Arts, Entertainment, Recreation
Accommodation and Food Services
11%
8%
TOTAL, TOP 5
76%
66%

10. Minnesota’s Immigrant Population Is Highly Educated
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

11. Worker Shortage: What Do We Do?
• Automate
• Grow elsewhere
• Support in-migration

12. Entrepreneurs
• 6% of businesses in Minnesota are immigrant-owned
• 5,000 Hispanic-owned (’11)
– Up 125% since 2006
– Sales > $2 billion
• 11,370 Asian firms (’07)
– Asian-Indian firms = 2400, >4,300 employees
– Sales > $2.3 billion
• $772 million average annual sales (’06-’10)
• Downtown & neighborhood revitalization
Source: Minnesota Public Radio 2011, Concordia University 2011, CLAC

13. When you think “American”…

14. Immigrants Start Businesses
• > 40% of Fortune 500 companies started by
immigrants or their children.
• Immigrants started 25% of high tech cos. from
1995-2005, creating 450,000 jobs.
• Immigrants lead some of MN’s largest companies:
3M, Lifetime Fitness, DeCare, Medtronic, Best Buy
& Mosaic.
Source: Partnership for a New American Economy, Minneapolis/St. Paul Business Journal

15. Consumer Power
• Minnesota’s foreign-born: > $5 billion buying power
• Housing market in Minnesota (2000-2010):
– 20% of growth in demand due to immigrants
– 44% of rental growth due to immigrants
– Depressed neighborhoods stabilized; new residents attracted
(including non-immigrants)

16. Economic Stimulus
• +1,000 immigrant professionals:
– +7,100 new jobs by 2020
– +$2.5 billion in personal income by 2045
• Reform to seasonal & part-time visas:
– 8,800 new jobs
– $348 million in personal income by 2020
• Localized effects:
– New immigrants may hurt wages of low-skilled native
workers, but net economic benefit to U.S. is $80,000 per
immigrant.

17. Connecting Us to the World
• Foreign investment & expertise key to growth
• MN’s steel & mining industries:
–
–
–
–
–
MN Steel (Nashwauk): India
ArcelorMittal Steel (Virginia): India
Gerdau Ameristeel (St. Paul): Brazil
Duluth Metals (Biwabik): Chile
Polymet (Hoyt Lakes): Canada
• Immigrants add diversity… that says, “World
Economy Welcome Here!”

18. Unauthorized Immigrants…No Definitive Data
• 55,000 – 85,000 unauthorized
• Cost: about $176-$188 m per year:
– K12 education: $146-158 m
– Incarceration: $13 m
- Public health care: $17 m
- Varies by community
• On the other hand:
– Annual state & local taxes paid, about $345 m
– Limited access to public assistance
• Immediate cost < long term benefit

19. Hmong MN Experience
Compiled by Dr. Bruce Corrie, Concordia University, St. Paul
Median Age
College Graduates
Workforce Participation Rate
Median Household Income
Household Receiving Public Assist
Homeownership Rate
Median Home Value
1980
37
5%
27%
$17,481
67%
12%
$85,927
2010
19.7
12.6%
59%
$49,400
14%
49%
$161,100

20. 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

21. QUESTIONS?
COMMENTS?

22. The Boom Generation Starts Turning 65 in 2011
65+ Passes School Age Around 2020
1,400,000
1,200,000
1,000,000
18-24
65+
5-17
800,000
600,000
400,000
200,000
0
1950 1960 1970 1980 1990 2000 2010 2020 2030
Census counts & State Demographer projection, revised 2007

23. Competition for the Future Workforce Will Increase
14%
13.0%
Percent Change 18-24
12%
10%
8%
US
Mn
6.8%
6%
4.5%
4%
2%
0%
-2%
-1.2%
-1.6%
-4%
-2.2%
-3.5%
-3.0%
-6%
2000-05
2005-10
2010-15
Census Bureau US Proj, Mn State Demographer revised 2007
2015-20

24. Percent Foreign Born - MN & U.S., 1950-2008
14.00%
12.00%
10.00%
8.00%
Minnesota
U.S.
6.00%
4.00%
2.00%
0.00%
1950 1960 1970
1980 1990 2000 20062008