The Reality of Immigration in the State

By Daniel H. Jara - 5/29/2006 The immigration debate underway in the United States is of critical importance to New Jersey’s business community. With a sizeable immigration population, both documented and undocumented, the result of any legislation passed will resonate throughout our state. I want to highlight some important facts that deserve further consideration. According to the Pew Research Center, our state is home to some 360,000 undocumented workers. The Statewide Hispanic Chamber of Commerce of New Jersey does not endorse or support illegal immigration. We do, however, recognize that the undocumented population serves an important economic need within our state. One of the key arguments used against undocumented workers is that they take jobs away from willing workers in New Jersey. The state had an unemployment rate of 4.5% in March. In March 1986, New Jersey had an unemployment rate of 5.2%. Despite the influx of more than 360,000 undocumented persons, there was a sharp drop in joblessness over this 20-year stretch . During this same period, the total number of documented workers increased by more than 600,000. This shows that the state’s economy successfully absorbed both documented and undocumented workers. Does some worker displacement take place? Yes, but it does so at the lowest rungs of the economic ladder. Undocumented workers are not displacing knowledge workers. Citizens and legal residents with a limited education, such as high school dropouts, are the ones at risk. They represent approximately 11% of our state’s workforce. The goal should not be to ensure that these people have lifelong access to low-paying, unattractive jobs by eliminating the supply of undocumented workers. The goal should be to find ways to provide these workers with the skills and education necessary to obtain higher-paying, more productive jobs. During this same 20-year period, our state has seen a remarkable increase in income. Per-capita income has increased from $18,800 to $43,800. Disposable household income has increased 133% from $16,200 to $37,800. During the period, cumulative inflation represented 84%. This indicates that both per-capita and disposable household income grew consistently and on a real basis. Both increases also outstrip the overall national growth during this period by a sizeable margin. With significant growth in both employment and income, the argument that undocumented workers pose an economic threat to New Jersey loses steam. This community adds to the economic strength of our state. Legislative efforts should focus on how to incorporate these members lawfully into our society. They should be held accountable for entering the country illegally, but they should not be barred from becoming full-fledged members of our society. It is in everyone’s interest to find a reasonable, compromise solution to the status of the undocumented population. Let’s focus on that. Daniel H. Jara is president and CEO of the Statewide Hispanic Chamber of Commerce of New Jersey.