August 15, 2013

Is Immigration a Solution for Economic Growth? – Workforce Immigrations Trends

Fortune 500 45% intl

45% of Fortune 500 Co.s in 2010 were founded by immigrant or child of one

Is Immigration a Solution for Economic Growth?

Workforce Immigration Trends

 

Reports show that immigration secures huge economic benefits through job creation and increased GDP. The tech talent crunch has been a persistent story throughout the recession and recovery, American companies need access to highly skilled international workers in order to compete. If we do not allow highly skilled foreign workers into the US, they will contribute to another country’s economy instead of ours, and America would risk losing its preeminent place as the world’s business powerhouses, and the Fortune 500 companies of the future.

 

More than forty percent of the 2010 Fortune 500 companies were founded by immigrants or their children; and seven of the ten most valuable brands in the world come from American companies founded by immigrants or children of immigrants. Many of America’s greatest brands inlcuding Apple, Google, AT&T, Budweiser, Colgate, eBay, General Electric, IBM, and McDonald’s, were founded by an immigrant or the child of an immigrant, according to Partnership for a New American Economy.

 

The “New American” Fortune 500 report states that immigrants spur job creation across all industries, including the highest growth sectors:

  • 45% of high-tech firms from the Fortune 500 had either an immigrant or child of an immigrant among its founders,
  • 50% of the medical equipment and device makers, including the three largest players by revenue, were founded by immigrants or their children,
  • Immigrant-founded Fortune 500 companies employ 3.6 million workers around the world today,
  • Fortune 500 companies founded by immigrants to the United States generated more than $1.7 trillion in revenues in 2010; companies founded by immigrants or children of immigrants generated more than $4.2 trillion in revenues that year.

 

The Brookings Institute’s Hamilton Project reports on the impact of new immigration on wages. While some worry about a negative impact on wages resulting from new immigration, several studies have shown that on average, immigration can positively impact wages and opportunities for Americans. When immigrants are hired into lower paid positions, American businesses and farms can expand their capacity which then provides new opportunities and better pay for more Americans. When there is a shortage of the right skills in the labor marketplace and highly skilled immigrants are able to enter the workforce, then American companies benefit in their competitiveness and capacity, again providing more jobs and opportunities, better pay follows.

 

Another report by the Regional Economic Models, Inc (REMI) Key Components of Immigration Reform estimates that the proposed Pathway to Legal Status policy would increase total U.S. employment by 123,000 in 2014, and by 594,000 by 2018. The GDP that would result includes an increase of over $10 billion in 2014, and over $49 billion in 2018. An expansion of the high-skilled (H-1B) worker visa program would add 227,000 jobs by 2014. The report argues for the expansion of lesser-skilled visas (H-2A [farm visas], H-2B [seasonal, peak load, and intermittent worker visas] and W-1 [lesser-skilled nonseasonal worker visas]) as well, citing increases in employment and GDP through increased economic productivity and output. The REMI report states that “expansion of these visas will benefit not only those who receive them, but also the workers and consumers in the U.S. economy as a whole.”

 

The positive impacts and need for top talent are the inspiration behind the formation of FWD.us by leaders of the US technology community, from tech giants such as Facebook, Google, YouTube, LinkedIn, DropBox, and other household names. FWD.us is a 501(c)(4) advocacy organization committed to promoting policies to keep the American workforce competitive. The group promotes comprehensive immigration reform: Easing immigration for foreign talent and enticing native entrepreneurs to stay in the country are among the group’s goals. The mission is “to build the knowledge economy the US needs to ensure more jobs, innovation and investment,” states Mark Zuckerberg in a Washington Post Op/Ed.

 

 

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March 28, 2013

Crowd Funding Economics – Web 3.0 Community Financing Meets Social Networks

CrowdfunomicsCrowd Funding Economics

Web 3.0 Community Financing meets Social Networks

Tech Trends

There’s been a huge roar building around crowdfunding and the marketing implications are clear. The democratization of accessing capital sped through Congress at a speed previously thought unachievable, led by the Crowd Fund Advisors. Crowdfunding platforms raised almost $1.5 billion in 2011, doubled to $3 billion in 2012, and is predicted to double again to $6 billion in 2013.

 

Crowdfunding can take various forms: Lending, Reward, Donation, and Equity. The forms currently legal in the US include the first three. In lending crowdfunding, funders receive interest income from their loan and expect repayment of original principal investment. In reward crowdfunding, there is a non-pecuniary benefit. Donation crowdfunding provides for not return and is purely philanthropic.

 

Equity crowdfunding allows companies to raise startup capital by selling small amounts of stock online to a large number of buyers. (more…)

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August 16, 2012

IT Expanding Demand, Expanding Salaries

IT Expanding Demand, Expanding Salaries

The Information Technology sector continues to expand so far in 2012. Investment continues both in infrastructure and in staffing. Software developers, Health IT, and Security Cleared IT are in high demand. The Bureau of Labor Statistics projected that from 2008 to 2018 Computer Software Engineers 283,000 jobs will be added. This adds to the competition for talent

Along with the increased competition for IT talent, are increased salaries, according to the 17th annual Redmond Salary Survey. Salaries stagnated for some years but many employers are seeing the wisdom of salary increases to current employees in order to stay competitive and retain technical talent.

There is also movement by employees at companies that are not giving raises. Despite very specific needs and employer demands for very specific skill sets and experience, for those who change companies, there is an associated salary increase. Given the 3.6 percent unemployment rate among IT workers that upward pressure on salaries looks set to continue.

We are seeing more competition this year for experienced security, networking, analytics, and cleared software developers,” reports Beth Cliff, IT Engineering Recruitment Manager at Redfish Technology. “Hiring companies are carefully evaluating the available talent and in many cases scaling salary offers to meet talent acquisition goals.”

According to the ESJ Salary Survey 2012 Part 1, the largest jump in salary was awarded to enterprise architects (up 10 percent), and Internet managers got the largest bonuses (up 55 percent). Across the board IT professionals in application areas such as SOA, business intelligence and analytics, and enterprise resource planning (ERP) saw salaries rise.

But it isn’t only IT professionals who stand to benefit from raises, according to the recent U.S. Compensation Planning Survey by Mercer, most U.S. employers plan on increasing base salary in 2013. Those who stand to benefit the most are predicted to be the top-performing talent, i.e. the top 8 percent of the workforce.

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July 19, 2012

The Biggest Challenge Facing Silicon Valley Companies.

Human Resources imageThe Biggest Challenge Facing Silicon Valley Companies.

 

“What’s the biggest challenge facing companies that bank with you?” asked John Cook from Geekwire.

“Finding appropriate talent,” answered Greg Becker, CEO of Silicon Valley Bank. “It is such an anomaly relative to the rest of the general economy that it is hard for the general economy to grasp how different it is.” (more…)

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June 28, 2012

What Metros are Growing the Fastest in Tech/STEM jobs?

Tech Trends

What are the hottest growth cities in the tech/STEM sectors?

Forbes recently published an article “The Best Cities For Tech Jobs”, in which the author, Joel Kotkin, analyzed tech-related jobs (including software, data processing and Internet publishing), and STEM (science, technology, engineering and mathematics-related) employment, in companies spanning manufacturing to business services to finance.

Interestingly, Silicon Valley isn’t in the top five despite the preponderance of high profile tech companies there. In fact, despite offering the most tech and STEM jobs in the U.S., Silicon Valley employed 170,000 less folks in 2011 than in 2000.

Coming in number one is the Seattle-Tacoma-Bellevue metro, with increased tech employment of 43% and STEM of 18% in the decade from 2001 to 2011. The last two years documented 12% growth in tech jobs, and 7.6% growth in STEM jobs. (more…)

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