Panel to consider immigrants' effect on economy
Panel to examine debate's effect on jobs, as Obama treads lightly on issue
By Antonio Olivo | Tribune reporter
June 8, 2009
With the national unemployment rate at a 25-year high, an almost unavoidable set of questions has become a focus of both sides in the nation's Immigration debate as the Obama administration plans to convene a bipartisan summit on the issue Monday.

Are the estimated 11.6 million illegal immigrants in the U.S. taking jobs from Americans? And how would providing them with lawful status help or hurt the nation's struggling economy?

A stream of commissioned reports and opinion essays has emerged in recent weeks, part of a strategy by immigrant advocates to win over an American public painfully aware of the thousands of jobs lost every week. It is a concern that the Obama administration has noted as it treads lightly around the issue.

"When unemployment is up, anything that looks like you're taking jobs away from people who are lawfully here ... is going to meet a lot of resistance," Homeland Security Secretary Janet Napolitano recently told reporters.

Pro-immigrant advocates say that is a perception they would like to counter. Among their recent arguments is that the Midwest needs undocumented workers to gain legal status in order to stabilize the region's economy. They also argue that a widening national workforce gap left by retiring Baby Boomers needs replenishing through legalization and new immigrants.

The other side in the debate, in favor of tougher Immigration enforcement, has noted the burden on government programs by low-income immigrants and argues for gearing legal entry toward skilled workers.

Rob Paral, a Chicago-based Immigration analyst, argues that some reforms should be tailored to the explosion of Mexican Immigration in the Midwest.

A report by Paral for The Chicago Council on Global Affairs found that the region's Mexican immigrant population grew from 205,000 in 1980, mostly in Illinois, to nearly 1.2 million spread through eight states in 2006.

Nearly two-thirds of the estimated 373,000 Mexicans who've arrived since 2000 were illegal, drawn by the low-skilled meatpacking, restaurant and retail jobs that have been transforming the Midwest economy, the report found.

Paral argues that their illegal status -- often in rural communities ill-equipped to absorb them -- has prompted a widening income gap that keeps low-paid immigrants living in ethnic enclaves with no English and little chance for advancement.

"In that situation, the best you can do is unshackle the workers as much as possible [by giving them legal status] and let them freely move within the labor market and integrate them into your communities," Paral said.

Addressing arguments that U.S.-born workers are losing jobs to immigrants, Paral also has produced recent studies for pro-legalization groups showing unemployment in areas with large immigrant communities is no higher than in those with few immigrants.

Yet, those low-skilled workers are nonetheless a drain on public services, countered Jena Baker McNeill, a policy analyst with the conservative Heritage Foundation.

In recent opinion essays, she cited a 2007 foundation report that measured the household income of low-skilled immigrants against the costs of Medicare and other government services to conclude that population is, on average, more of a tax burden than a benefit.

Legalization would make more immigrants eligible for government services without guaranteeing they'd earn and contribute more, McNeill argued.

"It's not that we're saying that immigrants don't provide any economic benefit," she said in an interview. "But that's outweighed if we legalize folks."

The Heritage Foundation wants legal Immigration to be geared toward high-skilled workers.

In a congressional hearing last month, former Federal Reserve Chairman Alan Greenspan argued on behalf of granting legal status to both low- and high-skilled workers, saying such reforms are "badly needed."

The assessment stems largely from increasing concerns over a widening workforce gap left by retiring Baby Boomers.

A report by the Washington-based Reform Institute, a public policy think tank, warns the country is heading toward "an entitlement crisis," as fewer workers pay into Social Security, Medicare and other programs while more retiring Baby Boomers seek aid from them.

"Taking all occupations together, the nation faces replacement needs of approximately 3.3 million workers each year from 2006 to 2016," the report states, calling new immigrants the most likely source to draw from.

On paper, such points may seem compelling.

But, once a new blueprint for Immigration reforms emerges, both sides will be trying to deliver their economic message in easily digestible bites.

Last week, a summit in Washington of immigrant advocates from throughout the country sought partly to hone that message.

"We understand that people are hurting and that we're asking for Immigration reform in a difficult economic situation," said Joshua Hoyt, executive director of the Illinois Coalition for Immigrant and Refugee Rights.

"We have to clearly explain why having 12 million workers who can be exploited and who are often in a cash economy is not good for all of us."


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