As concerns about the economic and infrastructural impacts of immigration grow nationally and in Massachusetts, a recent study from Boston University presents a data-driven perspective. The research emphasizes that immigrants are vital not only to many industries but also in addressing the challenges posed by an aging U.S. population and the migration of younger residents to more affordable states.
“Data doesn’t lie,” said Mark Williams, a professor at the BU Questrom School of Business and the study’s lead researcher. He aimed to focus on the economic realities of immigration, moving away from political debates. Williams noted that every time individuals leave Massachusetts, they take with them significant economic resources—amounting to millions, if not billions of dollars.
The study contributes to existing research showing that immigrants start businesses at double the rate of native-born individuals. This entrepreneurial activity generates substantial economic benefits, including job creation, increased revenue, and higher tax contributions.
While conducting research on outmigration earlier this year, Williams observed the “silent influences” of immigration on Massachusetts’s economy. The study highlights that as young adults aged 26 to 34 leave the state, mainly for neighboring New England states, the influx of immigrants is crucial for counteracting this outmigration trend.
In 2023, over 51,000 immigrants moved to Massachusetts, balancing out the 39,000 residents who left. Overall, the state’s population is growing at about half the national average rate.
According to Williams, a healthy economy relies on a balanced combination of available labor, population growth, and workforce participation. While immigrants help mitigate outflow, he warns that worsening economic trends could arise if the underlying causes of outmigration are not addressed.
Massachusetts ranks fifth in the nation for the percentage of immigrants in its population, even surpassing Texas. In the state, immigrant labor fills critical roles across various sectors. Many immigrants occupy high-skilled positions in science, technology, engineering, and mathematics (STEM) fields, as well as lower-wage essential jobs in construction, health care, and agriculture. Currently, immigrants make up about 20% of the workforce, including 26% of the state’s entrepreneurs, 30% of STEM professionals, and 16% of nurses.
The study indicates that approximately 1.26 million immigrants live in Massachusetts, with around 125,000 newcomers arriving in the past two years. It also references an estimate by the American Immigrant Council of about 130,300 undocumented immigrants in the state.
Immigration policy is largely a federal issue, and Massachusetts has felt the strain on its emergency shelter systems due to the influx of migrants, including many asylum seekers. State officials report progress in securing work authorizations for immigrants in shelters, which would help them find full-time jobs and exit the shelter system.
Williams identifies the gap between the influx of immigrants and their ability to work as a sign of “inefficiency” at the federal level. He asserts that immigration has played a crucial role in keeping the state’s unemployment rates at historic lows. However, he warns of the impending demographic challenges, with the older population growing at its fastest rate since the late 1800s and birth rates dropping to record lows.
Williams compares these demographic shifts to climate change, noting they will have significant, long-lasting economic consequences. He questions whether the nation is ready to implement policies to mitigate the adverse effects of this demographic transition.
Despite the study’s focus on economic data, Williams has a personal connection to the topic. His mother taught English as a second language and frequently welcomed her students into their home. These experiences instilled in him an appreciation for the “rich exchanges” that come from interacting with people from diverse backgrounds. As a professor, he continues this tradition by hosting international students for Thanksgiving at his home.
During the research process, Williams identified key insights, including the concept of the “immigrant echo.” He explained that the children of immigrants often surpass their parents’ achievements, not only in income but also by deepening their contributions to labor markets through new generations of expertise.
The ongoing labor shortage, highlighted by the COVID-19 pandemic, has shown that immigrants are not taking jobs from native-born individuals. Williams predicts that soon, all workforce growth in Massachusetts will stem from immigration. Recent initiatives in higher education aim to attract international students and encourage them to remain in the state after graduation.
Williams concluded by expressing gratitude for the influx of foreign-born residents in Massachusetts, stating, “If they were not coming in, Massachusetts would have a long-term problem.”
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