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Prosper planet pulse
Home»Entrepreneurship»Immigrant contributions drive economic prosperity
Entrepreneurship

Immigrant contributions drive economic prosperity

prosperplanetpulse.comBy prosperplanetpulse.comMay 21, 2024No Comments4 Mins Read0 Views
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Industrial worker operating lathe milling CNC machine at metal processing site.

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A recent national poll by The Wall Street Journal found that immigration is the top concern for voters this presidential election year, surpassing even the economy and inflation.

The influx of migrants to the southern border has sparked debate in traditional media, social media, and on Capitol Hill. But we also need to ask ourselves bigger questions. How many immigrants should we legally admit each year?

This is a serious problem because the U.S. population growth rate is historically low, according to the U.S. Census Bureau. The country’s growth rate in 2023 was 0.5%, while in the world it was 0.8%.

Economic growth requires a strong customer base and a talented workforce. When our population stagnates, we lose the innovative ideas that drive our economy and the wages and tax base that support our public facilities, schools, and overall quality of life in communities across the country.

The main reason for the slowdown in the country’s population growth is the decline in annual net immigration since 2016. In 2021, net immigration, including international students and foreign-born skilled workers, fell to less than 400,000. It has since rebounded and was a major driver of population growth last year, according to the Brookings Institution.

Stagnant growth threatens the future of some states. For example, since 1980, Michigan’s population has grown by only 8.8%, compared to 46.3% for the United States. Slower growth has reduced the state’s political representation in Congress, dropping from 16 members of the U.S. House of Representatives in 1980 to just 13 in 2020.

During the same period, the state’s population of people 65 and older increased by 98%. An aging population is putting pressure on Michigan’s labor market and public services, including the public health system.

States cannot interfere with federal immigration law, but they can adopt policies and programs that make them more welcoming and inclusive of newcomers from around the world. Intentionally integrating immigration into community and economic development strategies can create lasting prosperity for all.

Research shows that immigrants are more likely to start businesses than native-born Americans. A 2022 paper finds that when business creation is taken into account, immigration to the United States is associated with a net increase in employment possibilities, contrary to the common perception that immigrants fill jobs for U.S.-born workers. found.

Economists at the University of California, Los Angeles, found another interesting trend in recent Census Bureau data. That means Latin American immigrants are starting businesses at more than twice the rate of the overall U.S. population.

Michigan, like the nation as a whole, is feeling the effects of a surge in immigrant entrepreneurial activity: While about 7 percent of the state’s residents are immigrants, they account for nearly 10 percent of the state’s entrepreneurs, according to the American Immigration Council.

To continue momentum, Global Detroit, which promotes immigrant inclusion in Southeast Michigan, has launched the Global Entrepreneur in Residence program, modeled after national efforts to connect immigrant-led tech startups and universities. . The Global EIR program, currently operating across the state, will provide a valuable visa pathway for talented entrepreneurs to fill a gap facing immigrant startup founders, including many international student founders. is filling in.

One of the graduates of the Global Detroit program, Chening Duker, was born in Ghana and left the UK to study computer science at the University of Michigan. In 2020, Duker founded Goodplook, a fresh food delivery company serving Detroit. Two years later, Mr. Duker completed his Techstars Detroit, his JPMorgan-run startup accelerator program that supported entrepreneurs through investment, mentorship and community partnerships.

Another opportunity to attract and retain talent is connecting companies with international students and alumni. According to the Institute of International Education, the U.S. welcomed more than 1 million international students in the 2022-23 academic year. Michigan was home to 33,500 international students, who contributed more than $1.25 billion in spending to the Michigan economy.

Many international students want to stay and work after graduation. These make them a viable talent option for employers, especially those in the highly competitive STEM industry, which struggles to find enough highly skilled talent. The Optional Practice Training (OPT) program provides international students with temporary work authorization for one year after graduation. This work permit can be extended for an additional two years for students in certain science, technology, engineering and mathematics fields. OPT does not require employers to pay for it, since the visa is held by the university, according to Global Detroit.

Today’s rapidly evolving technology has the potential to dramatically change the jobs of the future and the skills needed for those jobs. By making our state more welcoming to immigrants, we can share more prosperity and create opportunity for all workers and their families.



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