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Employment
Pepsi to Pay $3.13 Million for Hiring Discrimination Against Black Workers
03 weeks ago
Big changes are in order at Pepsi Beverages after the U.S. Equal Employment Opportunity Commission found that hundreds of black workers were unfairly impacted by the company’s use of criminal background checks:
Here’s what happened, according to a press release:
The EEOC’s investigation revealed that more than 300 African Americans were adversely affected when Pepsi applied a criminal background check policy that disproportionately excluded black applicants from permanent employment. Under Pepsi’s former policy, job applicants who had been arrested were not hired for a permanent job even if they had never been convicted of any offense.
The investigation found that the criminal background check policy used by Pepsi was in violation of Title VII of the Civil Rights Act of 1964. In addition to the multimillion dollar payout, the company has also agreed to jobs offers and training.
New Report Finds that Immigration Creates U.S. Jobs
01 month ago
Immigration creates jobs for native-born Americans. That is the fundamental finding of a new study from the American Enterprise Institute and the Partnership For A New American Economy, entitled Immigration and American Jobs. The study—authored by Madeline Zavodny, a professor of economics at Agnes Scott College—reinforces the findings of numerous other studies which have demonstrated that there is no correlation between immigration and unemployment. Specifically, Zavodny analyzes Census data with the aim of answering one pivotal question: “In states with more immigrants, are US natives more or less likely to have a job?” Zavodny focuses on two groups in particular: immigrants with advanced degrees, and immigrants of any skill level who are in the country on temporary visas.
The four principal conclusions of Zavodny’s study are unequivocal:
- Immigrants who hold advanced degrees create jobs for native-born workers. The biggest job boost comes from those immigrants with advanced degrees from U.S. universities who work in the science, technology, engineering, and mathematics (STEM) fields. According to Zavodny, “data comparing employment among the fifty states and the District of Columbia show that from 2000 to 2007, an additional 100 foreign-born workers in STEM fields with advanced degrees from US universities is associated with an additional 262 jobs among US natives.”
- Both highly skilled and less-skilled temporary workers create U.S. jobs. Zavodny finds “that states with greater numbers of temporary workers in the H-1B program for skilled workers and H-2B program for less-skilled nonagricultural workers had higher employment among US natives.” Specifically, the addition of 100 H-1B workers was associated with an additional 183 jobs for native-born workers, while the addition of 100 H-2B workers was associated with an additional 464 jobs for native-born workers.
- Immigrants don’t take jobs away from native-born workers. According to Zavodny, there is “no evidence that foreign-born workers, taken in the aggregate, hurt US employment. Even under the current immigration pattern—which is not designed to maximize job creation, has at least eight million unauthorized workers, and prioritizes family reunification—there is no statistically significant effect, either positive or negative, on the employment rate among US natives.”
- The taxes paid by highly educated immigrants more than cover the cost of the benefits they receive. Zavodny finds that “in 2009, the average foreign-born adult with an advanced degree paid over $22,500 in federal, state, and Federal Insurance Contributions Act (FICA, or Social Security and Medicare) taxes, while their families received benefits one-tenth that size through government transfer programs like cash welfare, unemployment benefits, and Medicaid.”
According to Zavodny, the findings of her study suggest three reforms to the U.S. immigration system which would benefit the U.S. economy and native-born workers. First, she calls for a reorientation of permanent and temporary immigration policies to favor immigrants with advanced degrees from U.S. universities in STEM fields. Second, she advocates an increase in the number of “green cards” (permanent visas) available to highly educated immigrant workers. And third, she recommends an increase in the number of temporary visas for both highly skilled and less-skilled immigrant workers. Zavodny notes that these reforms would create new jobs while requiring “neither new taxes nor new spending cuts.”
Zavodny concludes that “immigration policy can, and should, be a significant component of America’s economic recovery.” Yet the reality is that even the most basic of immigration reforms are deadlocked in the U.S. Congress. And, while the United States dawdles, “the rest of the world competes for talent.” According to Zavodny, “every major developed country is more focused than the United States on admitting immigrants to meet economic needs.” In other words, whether they realize it or not, opponents of immigration reform are needlessly undermining the U.S. economy.
Photo by thekevinchang.
New Report Shows Immigrant Women Entrepreneurs Create Jobs and Contribute to Economy
02 months ago
Economists readily acknowledge the economic contributions of immigrant entrepreneurs to the U.S. After all, we wouldn’t have one-quarter of all public companies in the U.S.—companies like Google, Yahoo!, and Intel which employed 220,000 people and generated more than $500 billion in one year—without them. But lost in that acknowledgement are the contributions of immigrant women entrepreneurs who last year made up 40% (or 980,575) of all immigrant business owners in the U.S. This week, a new report, Our American Immigrant Entrepreneurs: The Women, takes a closer look at these women and examines the obstacles and pathways to establishing successful businesses—businesses that have created American jobs and generated millions in taxable revenue.
According to the report, there was a significant rise in immigrant women entrepreneurship over the last 10 years. According to the Census, 575,750 foreign-born women who immigrated as adults claimed to be self-employed in their own business as of 2000. Ten years later, however, that number has increased to 980,575 or 40% of all immigrant business owners in the U.S.
But that success isn’t always easy to come by. Of the immigrant women interviewed, many faced gender bias and difficulties securing start-up capital. Many women also reported that banks were hesitant to provide start-up funds due to the small size of their businesses. Yet, through their own determination and help from friends, associations, networks, colleagues and families, these women were able to establish successful businesses.
Maria Sobrino, for example, came to the U.S. from Mexico and started her own dessert company, Lulu Desserts. She noticed the absence of a Mexican comfort food, gelatinas or flavored gelatins, and began experimenting with samples. Due to difficulties securing capital, Sobrino had to start small and constantly reinvest in her business. “Do you know how many people laughed at my idea of having gelatinas and selling them with a little jar three hundred cups a day that I was doing?” Sobrino asked. “Today we sell about fifty million cups a year of gelatin, and we distribute to supermarkets.” Lulu Desserts currently generates $9.2 million and employs a host of marketing, sales, and delivery personnel.
Sheela Murthy, an immigration attorney from India and graduate of Harvard Law School, agrees that a passion to succeed was essential in establishing her own law firm—a firm which today generates $4-5 million a year and employs 70 people. Rubina Chaudhary, also of India, had trouble securing capital for her engineering management firm at first. Now, however, as president of MARRS Services, Inc., she manages multimillion dollar public contracts, employs 50 full time staff, and consults with large public and private clients.
These are just some of the many stories of immigrant entrepreneur women who, despite gender and racial discrimination, started their own businesses. And they want nothing more than to create an easier path for other immigrant women to do the same. They recommend easier access to start-up capital and federal loans for women- and minority-owned business, reform of bureaucratic hurdles, access to clearer information on state and federal regulations, and a continued discussion on how to address the barriers women face in the workplace.
In fact, making it easier for all entrepreneurs—including immigrant women—to start businesses which create American jobs, stabilize communities, and generate millions in taxable revenue seems like something every American would be wise to support.
American Innovation Takes on Broken U.S. Immigration System
02 months ago
In the past several days news reports have depicted good old American ingenuity taking on our broken and outdated immigration system. CNN ran a story last week from Georgia about a handful of educators who have taken matters into their own hands after the state’s Board of Regents passed an extreme law in 2010 banning undocumented immigrant children from attending Georgia’s top public colleges and universities—banned despite the fact that these kids pay three times the rate of other in-state students due to their immigration status.
In response, professors out of the University of Georgia launched a new institution called Freedom University, an educational institution specifically designed for college-ready kids subject to the ban. The University’s website catalogs an impressive list of academics that are supported and taught at the school. Their mission statement reads: “Freedom University defies the Regents’ ban on undocumented students, offering rigorous, college-level instruction to all academically qualified students regardless of their immigration status and without fees or tuition.” While students at Freedom University will not receive college credit, professors report that students’ remain enthusiastic and are willing to learn despite this limitation.
The next example comes from Silicon Valley, the heart of American innovation today. Artstechnica.com, a technology news site, reported that a new company called “Blueseed” is developing a creative solution for those high-tech California companies struggling to get the necessary visas to bring in the high-skilled workers they need.
Blueseed’s plan is to “bypass the political process and solve the problem directly” by purchasing a ship (yes, an actual boat) to be used as a “floating incubator anchored in international waters off the coast of California.” The ship would give high-skilled workers a place to live and work just a few miles off the coast of Silicon Valley. Artstechnica.com writes:
“If Blueseed’s audacious hack of the immigration system is successful, it will not only open up Silicon Valley to a broader range of entrepreneurs, it will also shine a spotlight on the barriers American law places in the way of immigrants seeking to start businesses in the United States.”
American innovation has long tackled our nation’s problems and often develops creative solutions that make all of our lives better. Our broken immigration system is apparently no exception. While Congress may well continue to cede its authority and responsibility to fix our immigration system, their lack of political courage certainly won’t stop groups of thoughtful, committed citizens from doing what is in their power to make America and our lives better today.
Photo by milan.boers.
Report Debunks Myth that High-Skilled Immigrants Steal American Jobs
02 months ago
It is an article of faith among anti-immigrant activists that immigration results in fewer jobs and lower wages for native-born workers. For instance, the Federation for American Immigration Reform (FAIR) recently released a report in which it claims that native-born workers with science and engineering (S&E) degrees are being driven en masse into non-S&E occupations due to competition from foreign-born workers willing to accept lower wages. However, in its rush to blame immigrants, FAIR misses a highly salient detail: a growing number of jobs in non-S&E occupations require or reward S&E skills. In other words, native-born workers with S&E degrees aren’t being driven out of S&E occupations by immigrants; they are being lured into non-S&E occupations where their S&E skills are in high demand and command higher salaries.
These are among the findings of a report released last month by Georgetown University’s Center on Education and the Workforce. The report, entitled STEM, presents a comprehensive analysis of Science, Technology, Engineering, and Mathematics (STEM) occupations in the United States that is a far cry from the grim portrait painted by FAIR. Where FAIR sees an immigration-induced glut of S&E workers who earn low wages, the authors of the Georgetown report see just the opposite. According to the report: “High and rising wage premiums are being paid to STEM workers in spite of the increasing global supply. This suggests that the demand for these workers is not being met.”
Moreover, this demand is not only coming from industries that traditionally hire STEM workers. It’s coming from industries like Professional and Business Services, Healthcare Services, Advanced Manufacturing, Mining, and Utilities and Transportation. Employers in these industries are willing to pay top dollar for workers with STEM backgrounds, which has the effect of “diverting” many STEM graduates into non-traditional career paths.
According to the Georgetown report, native-born STEM graduates are the most likely to be “diverted” into non-traditional career paths for a variety of economic, social, and cultural reasons. And this “diversion” of native-born STEM graduates “will continue and likely accelerate in the future.” As a result, there is likely to be “an increasing reliance on foreign-born STEM talent among American employers.” But this is a reflection of high labor demand, not low demand, as FAIR would have us believe.
The findings of the Georgetown report cast serious doubt upon those of the FAIR report. It would seem that FAIR is misreading the nature of the S&E, or STEM, workforce. Native-born S&E workers and recent graduates are moving into non-traditional industries because S&E skills are valued by so many different employers. In other words, they face a wide range of opportunities, not a shortage of options.
Even Facebook Feels Brunt of Broken U.S. Immigration Policy
02 months ago
You know things are bad when a company as popular as Facebook has problems finding qualified talent. In a recent interview, Facebook’s chief operating officer, Sheryl Sandberg, remarked that our outdated immigration policy is a big reason Silicon Valley tech companies are fighting each other for highly skilled workers. Current immigration policy limits high-skilled worker visas (H-1B) to only 65,000 per year—a number that hardly meets demand. Even technology giant Microsoft recently testified before Congress that current immigration policies make finding talent a serious challenge. Until lawmakers revamp our outdated immigration system, technology companies like Facebook and Microsoft will continue to lose out on the foreign talent they need to stay ahead of the curve.
It doesn’t help that the U.S. sends home the best and the brightest foreign students, many of whom create their own companies that compete with the U.S. Instead, Sandberg argued, American universities should attach visas to every high tech diploma so they can stay here and create businesses that employ American workers.
Critics of immigration reform complain that U.S. companies shouldn’t be recruiting foreign-born workers when we have such a high unemployment rate, but economists consistently show that that highly skilled foreign born workers do not take jobs away from Americans. They create jobs for other Americans.
According to the National Foundation for American Policy, “for every H-1B position requested, U.S. technology companies increase their employment by 5 workers,” on average, the following year. For technology companies with fewer than 5,000 employees, “each H-1B position requested in labor condition applications was associated with an increase of employment of 7.5 workers.”
Highly skilled foreign-born workers also contribute to U.S. innovation and growth. According to the Harvard Business School, the H-1B visa program “has played an important role in U.S. innovation patterns” over the past 15 years. Data shows that the number of inventions, as measured by patents, has increased when H-1B caps are higher due to “the direct contributions of immigrant inventors.”
Without this talent, American companies are at a serious disadvantage. As a Microsoft executive said in a recent hearing:
Our continued ability to help fuel the American economy depends heavily on continued access to the best possible talent … We need to be able to attract—and have adequate access through the immigration system to—skilled workers from abroad.
Despite overwhelming evidence that highly skilled foreign-born workers create jobs for American workers, add to U.S. innovation and growth and keep American companies competitive in the global marketplace, little about our employment-based immigration system has changed in the last twenty years. The cap on employment-based visas was set by Congress without regard to real labor needs or the flexibility to conform to our evolving economic reality. Although Congress and the Administration acknowledge the need to attracted foreign-born talent, no major adjustments to the overall number of available visas have been made.
Until the U.S. makes significant strides towards reforming employment-based visa policies and our entire outdated immigration system, U.S. companies will continue to lose their competitive edge as highly skilled foreign-born workers migrate to more immigrant-friendly countries to start businesses—taking their talent and potential contributions to U.S. economic growth with them.
Photo by techxav.
A Small Step Toward Reform: Bipartisan Bill Seeks to Raise Per Country Immigration Caps
03 months ago
An immigration bill introduced by Congressmen Lamar Smith and Jason Chaffetz and supported by Democrats may actually have a chance at passing in Congress. Scheduled for a mark up this week, the bill (H.R. 3012) would make small but significant changes to the way green cards are distributed by eliminating per country numerical limits on employment-based green cards and raising the limits on family-based green cards which go to immigrants from each country.
Currently, no single country can receive more than 7% of the total number of employment and family-based visas issued annually (620,000 combined). In other words, Belgium and Iceland can receive the same number of visas as Mexico and China. Since several countries send significantly more immigrants to the U.S. than others, this has led to large backlogs in the immigration system.
Unfortunately, HR 3012 will not add any new immigrant visas to the current system which is the fundamental problem facing our current legal immigration system. Instead, the bill would shift the distribution of available immigrant visas. Nonetheless, in an environment where politics trumps the need for legislators to address tough issues, improving the immigration system, even a little, is a step in the right direction.
A new report from the National Foundation for American Policy documents the backlogs for immigrants waiting to receive their green cards. “Waiting and More Waiting: America’s Family and Employment-Based Immigration System” finds that “absent action by the President and Congress, the situation will grow worse, creating much hardship and weakening the competitiveness of U.S. companies.”
Based on government data, the authors estimate that a highly skilled Indian national sponsored for a 3rd preference green card (professionals, skilled workers, other workers) today would wait 70 years for a green card. There are currently 210,000 or more Indians waiting in the 3rd preference, and only about 2,800 Indians can get a 3rd preference green card each year.
Making U.S. companies and workers wait 70 years equals a lot of wasted potential. While the Indian worker may already be in the U.S. on a temporary visa (such as an H-1B), the uncertainty of the situation, the inability of the spouse to work, the inability to get promoted, and other factors may cause the worker to leave the U.S. to work for the competition.
The authors also estimates that if the numerical per country limits were eliminated, the wait time for high-skilled immigrants from India and China would be reduced by several years, depending on the details of the reform. However, it would also mean that the backlogs for all other countries might increase by several years if it is not accompanied by other reforms including increasing the overall number of visas and ensuring that any unused visas may be used the following year.
It’s good to see Congress moving forward with much needed reforms to the legal immigration system. We can only hope that this bill is followed by reforms that will more directly address the inefficiencies and ineffectiveness of our immigration system rather than simply making sure that they are more equitably distributed around the world.
Photo by Karin Lau.
Some Alabama Businesses Having Trouble Replacing Immigrant Workers
03 months ago
Just two weeks after Alabama’s extreme immigration law (HB 56) went into effect, many are reporting an exodus of immigrants, Latinos and their families from the state. While HB 56 supporters cheer the exodus as a victory, many Alabama businesses say they are left without an adequate workforce. Despite assurances from Governor Bentley that U.S. citizens will gladly take those jobs, Alabama farmers, meat processors and housing contractors are finding that U.S. citizen or legal workers are either not willing or able to take those jobs—leaving fruit to rot on the vine and home reconstructions projects unfinished. Not only will this hurt Alabama business in the short term, economists say, but will shrink the state’s economy and productivity over time.
To test Governor Bentley’s claim, Alabama tomato farmer Jerry Spencer recruited more than 50 U.S. citizen workers, gave them free transportation and paid them to pick fruit and work the fields. Only a few worked for more than two or three days. One stayed for the entire two weeks. According to Spencer, “people weren’t in good enough physical condition to work harder or longer hours and typically gave up when faced with acre after acre of tomato plants ready to be picked.”
Other farmers, like Helen Jenkins, are also having a problem filling labor shortages. “You can’t get the (American) workers out here to do the work that the Hispanics were doing. It’s just not working,” Jenkins said. Another farmer, Chad Smith, said his family’s farms stands to lose as much as $150,000 this season with no one to pick tomatoes.
The construction industry is also taking a hit. Jay Reed of the Alabama Associated Builders and Contractors said his group has tried to recruit local workers for years but that many of them just don’t want those jobs. Likewise, Bill Caton of the Associated General Contractors of Alabama quoted estimates showing nearly one-fourth of the state’s commercial building work force has fled since the law went into effect.
And it’s not just undocumented workers who may be leaving. Residents of Russellville, Alabama fear their town’s large Latino population (nearly 10,000) may flee due to fears of racial profiling, taking the town’s economic well-being with them. Russellville Mayor Troy Oliver estimates the sales tax contributions of Latino residents make up nearly half the town’s annual budget, nearly $8.5 million. According to business owner, Greg Parrish:
“Fifteen years ago, Russellville was a dead town,” Parrish says. As Hispanics moved in, “everything started booming. They put a lot of money back into the community. If they leave, Russellville’s going to be hurting big time.”
In fact, University of Alabama economist Samuel Addy estimates that Alabama’s economy will shrink by $40 million if undocumented workers are driven from the state since U.S. workers are unlikely to fill those jobs.
… Anecdotal evidence strongly suggests that only a small number of jobs vacated by illegal workers will be filled by legal residents. So the state will suffer a net loss in productivity. It reduces demand. The economy will contract
It’s too soon to really understand the impact the law will have on the Alabama economy, but a preliminary assessment suggests its consequences weren’t taken into account when it was passed.
Although stories of labor shortages may be anecdotal at this point, the fiscal impacts are real. It doesn’t take a Ph.D. in economics to guess what happens to a state’s economy over time when you remove a large portion of its labor force and tax base.
Photo by bgottsab.
Dayton, Ohio Passes Plan to Revitalize Economy through Immigrant Integration
03 months ago
Shortly after Alabama began implementing their anti-immigration law (HB 56), Dayton, Ohio passed legislation that welcomes and integrates immigrants with the hope that they will revitalize their slowing economy. Faced with a declining population, Dayton’s City Commission voted unanimously last week to adopt the Welcome Dayton Plan—a plan that is tapping into the very economic stimulus that Alabama is driving out.
The Welcome Dayton Plan focuses on four aspects crucial to attracting and integrating immigrants—business and economic developments, increased government participation, improved access to health services, and involvement in the culture, arts, and educational opportunities. Specifically, the Welcome Dayton Plan seeks to:
- Create an inclusive community-wide campaign around immigrant entrepreneurship that facilitates startup businesses, opens global markets and restores life to Dayton neighborhoods.
- Offer language services to access government and health services, and educate immigrants about government participation and laws.
- Issue “municipal identification cards for community residents who are not eligible for any other accepted identifying document.”
- Advocate for immigrant friendly laws at the state and federal levels through the City and County lobbying efforts.
By welcoming immigrants, Dayton expects to grow their local economy, increase the number of small business and integrate immigrants into their communities—a far cry from the current chaos in Alabama. In a survey leading up to the plan, officials asked residents how the arrival of immigrants has impacted Dayton. The response? “Businesses were started. Jobs were created. Houses were rehabilitated. Underused buildings were reused and rejuvenated.”
Dayton City officials based the plan on nation-wide studies that show immigrants create new businesses and complement the American workforce. For example, a White House report noted that immigrants started 25% of the highest growth companies between 1990 and 2005, companies which supported 220,000 jobs in the U.S. and generated $67 billion in U.S. business income. A Brookings Institute study also indicated that “U.S. global competitiveness rests on the ability of immigrants and their children to thrive economically and to contribute to the nation’s productivity.” Dayton officials have done their homework and are not acting in response to fear. Rather, they are building a plan based on economic facts.
Alabama, on the other hand, has voted to alienate immigrants through harsh enforcement policies that drive out those who add to their economy. The Welcome Dayton Plan, however, recommends that police perform immigration status checks only for the suspects of serious crimes. According to a CNN report, “such a policy could protect undocumented immigrants stopped for minor offenses from fearing deportation.”
According to the Dayton Daily News, city residents, business owners, and scholars support the plan. University of Dayton professor Linda Majka summed up Dayton’s attitude well: “One reason the American Dream is still alive is that people keep coming to us who believe in it. Dayton has the opportunity to get this right.”
Photo by joe gauder.
Declining Cities Look to Immigrants to Revitalize Economies and Increase University Enrollment
04 months ago
In a recent speech to the U.S. Chamber of Commerce, New York City Mayor Michael Bloomberg highlighted the vital role immigrants play in stimulating economic growth. Bloomberg called for immigration policies that “spur innovation, increase the number of entrepreneurs who start businesses here, and create jobs for Americans on every rung of the economic ladder.” With U.S. unemployment still hovering around 9%, some declining U.S. cities are also looking to harness the economic and entrepreneurial power of immigrants. Small towns, particularly in America’s rust belt, are contemplating programs that attract immigrant growth in hopes of revitalizing their towns and universities.
Take Dayton, Ohio, which is facing its lowest population level since 1920. State legislators are voting this week on whether to pursue the “Welcome Dayton Plan”—a new campaign designed to encourage immigration and economic growth. The plan includes the expansion of integration services, like interpretation services at city departments, as well as public events geared toward immigrants. Tom Wahlrab of Dayton’s Human Relations Department believes the city should welcome such a campaign.
“I believe the city of Dayton is at a crossroads,” said Wahlrab, according to the Dayton Daily News. “We can either welcome them, help integrate them, help them on the path to citizenship, or we can let old stereotypes and fears and preconceptions hinder our success.”
Ohio isn’t alone. Over a decade ago, Iowa faced a declining population and passed proposals to make Iowa an “immigration enterprise zone.” According to the New York Times, “in recent years, immigrants from Bosnia, Sudan, and especially Mexico have been the only reason Iowa’s population has had any net growth.”
These new immigration initiatives also focus on increasing college and university enrollment. In early 2011, Michigan’s governor organized a program called “Global Michigan,” an effort to target international students and skilled immigrants in response to population decline. And for good reason. Back in 2002, the struggling mill town of Lewiston, Maine saw the influx of roughly 3,500 Somali immigrants—a population who not only opened new businesses and contributed to the local economy and job growth, but increased university enrollment by nearly 16% from 2002 to 2007.
As small towns across America continue to face high unemployment rates, sluggish economies and decreasing populations, campaigns that welcome and integrate immigrants rather than drive them away may result in the new business, job and economic growth these declining cities so desperately need.
Photo by Brandon Florkey.