Come From Away
Authored by Dr. M. Ray Perryman and originally published on perrymangroup.com
The foreign-born population is an indispensable component of the US workforce. Many regions are experiencing slowing population growth or even shrinkage in key working age ranges, as the baby boom generation retires and fertility rates fall. This pattern will only get worse if we fail to act.
Unauthorized immigration, primarily from Central America, has generated a humanitarian crisis along much of the southern border in recent years. Much of this influx is the result of famine and violence in their home countries and is difficult to address through traditional policy mechanisms. Obviously, it is crucial to maintain border security, but responsible immigration of workers at all skill levels is equally vital.
In many geographic areas and occupations, job openings exceed unemployed persons by a substantial margin. Without the foreign-born workforce, economic growth would be significantly constrained. In key industries, such as construction trades, immigrants comprise 30-40% of the workforce, with some individual occupations near 65%. While some immigrants hold low-skill jobs in sectors such as agriculture, maintenance, and hospitality, many foreign-born residents are highly skilled professionals such as physicians, engineers, scientists, and nurses. Even among undocumented workers, almost 75% are in jobs classified as essential (a slightly greater proportion than the labor force as a whole).
The US Census Bureau provides estimates of foreign-born individuals, which refers to anyone answering the Census who was not a US citizen at birth. The estimates include naturalized US citizens, lawful permanent residents, asylum seekers, students, and unauthorized migrants. Although the information is collected irrespective of legal status, it is likely that the estimates tend to undercount undocumented immigrants due to a potential reluctance to participate.
About 46.2 million foreign-born individuals resided in the United States as of 2022, representing approximately 14% of the total population of 333.3 million persons. Over 24.5 million of these individuals were naturalized US citizens (53% of foreign born and 7% of the total US population), while 21.7 million were not. Latin America and Asia were the most common regions of origin. For Texas, the 2022 foreign-born population was 5.2 million (17%) of the state total of about 30 million persons. About 43% were naturalized citizens, and 65% were from Latin America.
Foreign-born workers are a key aspect of both current economic vitality and future expansion. The math is simple. The Congressional Budget Office projects that net immigration will account for all population growth in the US by 2040, while the demand for workers will continue to increase. In other words, we are not adding nearly enough people to meet the requirements of a growing economy. Sensible immigration policies which enable and encourage people to legally live and work in the US will enhance prosperity for everyone. Stay safe!
Dr. Ray Perryman is President and CEO of The Perryman Group, an economic research and analysis firm based in Waco, Texas. His firm has served the needs of more than 3,000 private-sector clients, including two-thirds of the Global 25, over half of the Fortune 100, the 12 largest technology firms in the world, 12 US Cabinet Departments, the 9 largest firms in the US, the 6 largest energy companies operating in the US, and the 5 largest US financial institutions. The firm has also completed over 1,000 public policy studies on a variety of issues.
Dr. Perryman was named Outstanding Young Person of the World for Business and Economic Innovation in 1987, was designated Texan of the Year by the Texas Legislative Conference in 2012, received the Baylor University Distinguished Service Medal in 2013, was inducted into the Texas Leadership Hall of Fame in 2014, and received the Cesar E. Chavez Conscience Builders Award in 2016 for his humanitarian efforts, and in 2018 was named the Most Dynamic Economic Researcher in the US by Global Business Insights. In 2019, Dr. Perryman received the Chairman's Award for Lifetime Achievement in Economic Development from the International Economic Development Council and was selected for the "Go Global" Award from the International Trade Council as the outstanding global economic analyst for his work on trade, energy, the environment, and other international issues. He dedicates a significant portion of his time to pro bono work aimed at helping to solve pressing social problems such as hunger, indigent healthcare, poverty, and child maltreatment.