Shortcuts

Connect with us on Facebook!
Subscribe.
[Feeds & Readers]

Make us your home page!
Authors, sign in!

« Are These Outcomes Okay with You? | Main | A Street by Any Other Name »


Impact of Undocumented Workers on Business Activity

By Larry James
August 5, 2008

Economist Ray Perryman knows about as much about the Texas economy as anyone who makes a living studying it. The Perryman Report is consulted by policy makers, business leaders and academics who share a concern for economic forces and the reality facing Texas citizens, consumers, labor and employers.

The Perryman Report & Texas Letter (March 2008) contains an important essay, "An Analysis of the Economic Impact of Undocumented Workers on Business Activity in the US with Estimated Effects by State and by Industry." Noting the concerns of a shrinking workforce brought about by the aging of the Baby Boomers, Perryman is keen to impress upon his readers, no matter what their ideological or political positions, the central role of immigrants in helping sustain and grow the American economy.

Perryman regards "enforcement-only" strategies and responses to undocumented immigrants as inadequate and naive in light of economic reality. As he says early in his report,

"Overly restrictive policy has the potential to devastate certain industries...

While a national reform initiative is imperative, it must be cognizant of the potential economic fallout in order to avoid unnecessary disruptions, dislocations, and unintended consequences." (page 1)

Here are some facts from Perryman's research and wisdom:

  • 1 in 8 people living in the U. S. is an immigrant
  • Total number of immigrants is up by 10 million since 2000 to over 37,000,000 nationwide
  • 33% of our immigrant population accesses some major welfare program compared to 19% of native-born families, but most of these immigrant consumers are documented, rather than undocumented
  • A higher percentage of immigrants are employed than natives, but have lower educational levels, work at lower skill jobs and earn less for their work
  • Estimates of the undocumented immigrant population in the U. S. ranges from 11.1 to 12 million
  • California, Texas, Florida, and New York have the highest number of undocumented residents
  • Undocumented immigrants arrive in increasing numbers with 180,000 annually in the 1980s, as compared to 850,000 per year between 2000-2005
  • 78% of undocumented immigrants come from Latin America, with 56% of the total arriving from Mexico
  • Approximately 4% of U. S. school-age children are undocumented
  • The cost to educate undocumented immigrant children and U. S. born children of undocumented immigrants is estimated to be $30 billion
  • 8.1 million undocumented immigrants work in the U. S. economy
  • Between 50 and 75% of undocumented immigrants pay federal, state and local taxes.
  • Social Security and Medicare contributions made by undocumented workers support the benefits of older American citizens, as the immigrants will not be able to collect such benefits
  • Undocumented workers pay "far more" in taxes than they receive in benefits from various governments; while some state and local entities experience a net loss in cost of benefits versus taxes paid. "Viewed on the whole... the group more than compensates for the services it receives" (page 3).
  • Removing all undocumented workers would result in $1.757 trillion in annual lost spending, $651.511 billion in annual lost labor output, and 8.1 million job losses.
  • After the U. S. economy "adjusted" to such a loss of labor and capital, Perryman estimates that the sustained losses would include $551.569 billion in annual spending, $244.971 billion in annual labor output and more than 2.8 million lost jobs.

Amazing analysis. The economic and labor data line up well with my personal experience in inner city Dallas. We must craft policies that provide guest worker status to immigrants who simply want to work, make a contribution to the U. S. economy and better their lives and those of their loved ones.

Doesn't that sound thoroughly American?

[More from Ray Perryman later.]


Post your own comment

(To create links here or for style, you may wish to use HTML tags in your comments)

Want to browse more blogs? Try our table of contents to find articles under specific topics or headings. Or you might find interesting entries by looking through the complete archives too. Stay around awhile. We're glad you're here.


Browse the Blogs!

You are here!

This page contains only one entry posted to Everyday Citizen on August 5, 2008 12:28 PM.

The blog post previous to it is titled "Are These Outcomes Okay with You?"

The post that follows this one is titled "A Street by Any Other Name"

Want to explore this site more?

Many more blog posts can be found on our Front Page or within our complete Archives.

Does a particular subject interest you?

You can easily search for blog posts under a specific topic by using our List of Categories.

Visit our friends!

Books You Might Like!

Notices & Policies

All of the Everyday Citizen authors are delighted you are here. We all hope that you come back often, leave us comments, and become an active part of our community. Welcome!

All of our contributing authors are credentialed by invitation only from the editor/publisher of EverydayCitizen.com. If you are visiting and are interested in writing here, please feel free to let us know.

For complete site policies, including privacy, see our Frequently Asked Questions. This site is designed, maintained, and owned by its publisher, Everyday Citizen Media. EverydayCitizen.com, The Everyday Citizen, everydaycitizens.com, and Everyday Citizen are trademarked names.

Each of the authors here retain their own copyrights for their original written works, original photographs and art works. Our authors also welcome and encourage readers to copy, reference or quote from the content of their blog postings, provided that the content reprints include obvious author or website attribution and/or links to their original postings, in accordance with this website's Creative Commons License.

Copyright, 2007-2009, All rights reserved, unless otherwise specified, first by each the respective authors of each of their own individual blogs and works, and then by the editor and publisher for any otherwise unreserved and all other content. Our editor primarily reviews blogs for spelling, grammar, punctuation and formatting and is not liable or responsible for the opinions expressed by individual authors. The opinions and accuracy of information in the individual blog posts on this site are the sole responsibility of each of the individual authors.