Immigrant Contributions Fuel Economic Prosperity

Immigration has become the top concern for voters in this presidential election year — even above the economy and inflation, according to a recent Wall Street Journal national poll.

The influx of migrants at the southern border has consumed the debate on traditional media, social media and in the halls of Congress. But we should also be asking ourselves a bigger question: How many immigrants should we allow into the country legally every year?

It’s a serious issue because, according to the U.S. Census Bureau, U.S. population growth is historically low. In 2023, national growth was 0.5%, compared to 0.8% worldwide.

Economic growth requires a strong customer base and a talented workforce. When population stagnates, you lose out on innovative ideas that drive economies, and the wages and tax bases that support public amenities, schools and overall quality of life in communities across the country.

A major reason for the slowing national population growth is a decline in annual net immigration after 2016. In 2021, net immigration, which includes international students and foreign-born skilled workers, dropped to less than 400,000. It has since rebounded and was the main contributor to population growth last year, according to the Brookings Institution.

For some states, stagnant growth threatens the future. Since 1980, Michigan’s population, for example, has grown only 8.8%, compared to 46.3% in the U.S. The slow growth has diminished the state’s political representation in Congress, falling from 16 U.S. House representatives in 1980 to only 13 in 2020.

During this same period, the 65 and older population in the state grew by 98%. The aging population is putting pressure on Michigan’s labor market and public services, including the public health system.

While states can’t interfere with federal immigration law, they can adopt policies and programs that make them more welcoming and inclusive for newcomers from all over the world. By intentionally including immigrants in community and economic development strategies, you can create sustained prosperity for everyone.

Studies show that immigrants are more likely to start businesses than native-born Americans. A 2022 paper found that taking business creation into account, immigration to the U.S. is associated with a net gain in job availability, contrary to the common perception that immigrants fill jobs that U.S.-born workers would otherwise have.

An economist at the University of California Los Angeles spotted another interesting trend in recent Census Bureau data: Latin American immigrants are starting businesses at more than twice the rate of the U.S. population as a whole.

Michigan, like the country as a whole, has felt the super-charged entrepreneurial activity of immigrants. While accounting for about 7% of the state’s residents, immigrants account for nearly 10% of the entrepreneurs in the state, according to the American Immigration Council.

To keep momentum going, Global Detroit, an advocate for immigrant inclusion in Southeast Michigan, started a Global Entrepreneur in Residence program, modeled after a national initiative that engages immigrant-led tech startups with universities. The Global EIR program, now operating statewide, fills a gap faced by immigrant startup founders, including many international student founders, by providing a valuable visa pathway to talented entrepreneurs.

One of the alums of Global Detroit’s program is Chening Duker, who was born in Ghana and left the United Kingdom to study computer science at the University of Michigan. In 2020, Duker founded Goodpluck, a fresh produce delivery company serving Detroit. Two years later, Duker completed Techstars Detroit, a startup accelerator program run by JP Morgan that supports entrepreneurs with investment, mentorship and community partnerships.

Another opportunity to attract and retain talent is to connect companies with international students and graduates. The U.S. hosted over 1 million international students during the 2022-23 academic year, according to the Institute of International Education. Michigan was home to 33,500 international students who contributed over $1.25 billion in spending to the Michigan economy.

Foreign students also often want to stay and work after graduation. They present a viable talent option for employers, especially those in highly competitive STEM industries who struggle to find enough highly skilled workers. The Optional Practice Training (OPT) program provides temporary work authorization for one year after graduation to international students. This work authorization can be extended for an additional two years for students in certain science, technology, engineering and math fields. OPT requires no cost to employers since the visa is held by the university, according to Global Detroit.

Today’s rapidly evolving technology stands to dramatically alter the jobs of the future and the skills required to fill them. Making your state more welcoming for immigrants helps build more shared prosperity and creates opportunities for all workers and families.