Philadelphia’s Immigrant Population Plays Key Role in City’s Economic Growth, Pew Study Finds.
A recent report by The Pew Charitable Trusts reveals that Philadelphia’s foreign-born residents have had a signif.icant impact on the city’s labor force. Released on Tuesday, the report dives into the economic and fiscal contributions of the city’s immigrant communities, highlighting their growing role in several sectors.
Immigrants now make up nearly 16% of Philadelphia’s population—the highest percentage since the 1940s, according to Pew. Despite this, they have accounted for about one-third of the city’s labor force growth since 2010. The report shows that immigrants contribute roughly 20% of the city’s total workforce. This is partly because 57% of the foreign-born population is of prime working age (25 to 54), compared to just 40% of the native-born population.
“Immigrants are crucial not just as workers, but also as business owners, homeowners, and taxpayers,” said Thomas Ginsberg, the report’s co-author and senior officer at Pew. “Their role in the economy has been growing at disproportionate rates compared to their share of the population.”
In addition to their influence on the workforce, the report emphasizes the cultural and economic changes brought by immigrant communities. “It’s the culture, the cuisine, the people, and the businesses that have steadily grown over the years,” Ginsberg said. He noted that the ongoing increase in immigrant contributions is something policymakers should carefully consider.
The findings are part of a broader series of studies Ginsberg is leading to closely examine Philadelphia’s immigrant population.
Immigrant Workers Across Key Industries
The report also looks at the distribution of immigrant workers across various industries in the city. It shows that a large percentage of these workers are employed in health care, transportation, and retail. It further breaks down the wage levels and industry distribution by countries of origin.
Entrepreneurship and Economic Impact
One of the most notable findings is the high rate of entrepreneurship among the immigrant community. Immigrants account for one-third of all business owners in Philadelphia, and the report found that Brazilians are particularly entrepreneurial, with nearly 20% either self-employed or owning their own businesses.
Ginsberg pointed out that these findings reflect the positive effect of immigrant communities on Philadelphia’s economy. “There’s no doubt that immigrant entrepreneurs are helping drive the city’s economic growth,” he said.
Short-Term Costs, Long-Term Gains
Despite these positive impacts, Ginsberg acknowledged that there are also costs associated with supporting immigrant communities. “This is a transitioning population, with over half of immigrants working in low-wage jobs,” he explained. As a result, many immigrants require services, which presents a financial challenge for the city. However, the report could not quantify the exact costs.
Ginsberg emphasized that while the first generation of immigrants may come with some fiscal costs, the long-term benefits are clear. “The next generation contributes significantly to the economy and helps improve the fiscal health of local government,” he said. “As long as they stay in the area, they can become net contributors.”
The report suggests that local officials may have some influence over whether immigrant families remain in Philadelphia, which could have lasting economic benefits for the city.