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

Filed under: High Tech / IT / Software, Industry Info, Jobs/Employment, Tech 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.

 

 

Pacific States Taking the Lead in Advanced Transportation, Green Buildings, Clean Electricity, and Clean Tech Investment

Filed under: Industry Info, Tech Trends

Pacific States Taking the Lead in Advanced Transportation, Green Buildings, Clean Electricity, and Clean Tech Investment

Clean Edge Website

Find more on the Clean Edge Website

Information from the Clean Edge 2012 U.S. Metro Clean Tech Index

 

 

You probably already know the Clean Edge State Clean Energy Index but have you seen the new Metro Clean Tech Index? This report evaluates the biggest 50 metro areas to highlight clean-tech leadership, innovation, and cluster development. The evaluation categories focus on four sectors: green buildings; advanced transportation; clean electricity & carbon management; and clean-tech investment, innovation, & workforce. Read more »

Tech Trends: Technology Investment Creates Jobs, Prosperity

Filed under: High Tech / IT / Software, Industry Info, Tech Trends

Tech Trends

Technology Investment Creates Jobs, Prosperity

Technology investment nurtures innovation and creates economic prosperity. This statement has been proved time and time again. In competition with the Soviet Union’s space program, the U.S. invested heavily in science, engineering, aerospace, and technology, and they pay off was strong innovation, huge job creation, and the birth of new industries in which the U.S. was the clear leader for decades. Today high tech products are the U.S.’s largest overseas export, making up 17.8 percent of all U.S. exports and supporting more than 900,000 U.S. jobs. Most nations are doubling down on their technology and innovation strategies and investment in an effort to win in the telecommunications, energy, and IT industries; securing dominance in key industries of tomorrow will grow jobs and prosperity for the winners.

Investment means allocating funds but it also means creating and acquiring talent. The U.S. has fallen behind in domestic Science, Technology, Engineering and Mathematics education – while 33% of the workforce requires these talents, Americans obtaining degrees in these fields falls below the mark. Foreign-born innovators and entrepreneurs have been instrumental in many of the cutting edge firms and technologies that have brought prosperity throughout the history of the U.S. A  Kauffman Foundation study found that 25% of science and technology start-ups founded between 1995 and 2005 had either a foreign-born chief executive or lead technologist. In 2005, these firms produced $52 billion in revenue with 450,000 employees. Opening immigration to highly skilled and educated will feed and grow innovation and jobs here in the U.S.

Technology innovation leads to national economic prosperity. According to a study by Christine Qiang of 120 nations between 1980 and 2006 estimated that for each 10 percentage point increase in broadband penetration, a high income country’s gross domestic product goes up by 1.3 percent. According to TechAmerica’s Phillip J. Bond, president and CEO, on the average each tech job supports three jobs in other sectors of the economy and the multiplier effect is 5-to-1 for information technology jobs. Information technology accounts for more than a third of U.S. gross domestic product growth and nearly two-thirds of corporate capital investment. Currently there are 375,000 information technology businesses in the U.S. employing over 5.9 million people; by 2018 IT jobs are projected to grow by 22 percent.

 

Recommended reading from Redfish Technology:

Competition for Talent, Immigrants Have Historically been Innovators, Job Creators.

Tech Provides Map for Nation’s Future

Technology and the Innovation Economy by Darrell M. West, Vice President and Director, Governance Studies at the The Brookings Institution

 

Competition for Talent, Immigrants Have Historically been Innovators, Job Creators.

Filed under: High Tech / IT / Software, Industry Info, Jobs/Employment, Tech Trends

Competing for Talent, Immigrants Have Historically been Innovators, Job Creators.

A recent Wall Street journal article entitled: “A Better Idea for Green Jobs” should serve as a good reminder of our long history of immigrants creating innovation, building new companies, and starting tens of thousands of new jobs in the process.

The article reports that according to a Kauffman Foundation study, 25% of science and technology start-ups founded between 1995 and 2005 had either a foreign-born chief executive or lead technologist. Vivek Wadhwa, a Duke University researcher, reported that in 2005 those firms produced $52 billion in revenue with 450,000 employees. The majority (52%0 of Silicon Valley start-ups were immigrant led. Read more »

Green Energy and the Risks and Opportunities of Plenty

Filed under: Industry Info, Tech Trends

Green Trends

Green Energy and the Risks and Opportunities of Plenty

Will the demise of Solyndra and pressure on green energy initiatives stall out our domestic investment? Competitors are massively investing in green energy R&D, aiming at growing technological innovation and taking leadership positions in new green industries. Will the newly exploitable domestic energy that fracking has let lose at home be a risk or a boon to green energy investment in the US? Read more »

The Right Talent Critical for Business Growth Strategy Implementation, Say Leading CEOs

Filed under: Employer, Human Resources / Capital, Talent Acquisition, Talent Retention, Training

The Right Talent Critical for Business Growth Strategy Implementation, Say Leading CEOs

The CEO Challenge 2011 cites Growth and Talent as the most critical challenges. After years of scaling back, driving business growth emerges as top concern for corporate leadership. Talent management and innovation are the most critical vehicles for business growth strategies today. Read more »

Bernanke Weighs In, CEOs Too – Growing Optimism on the Hiring Front

Filed under: Recruiting, Staffing & Employment News

Bernanke Weighs In, CEOs Too

Growing Optimism on the Hiring Front

The Los Angeles Times reported today that:

The Fed chief also gave a somewhat more positive assessment of the employment situation, after last Friday’s report showing the nation’s unemployment rate falling to 9% last month from 9.4% in December and 9.8% in November.

He said: “Notable declines in the unemployment rate in December and January, together with improvement in indicators of job openings and firms’ hiring plans, do provide some grounds for optimism on the employment front [1].

In spite of this week’s conflicting short term data, we should be celebrating that the U.S. unemployment rate dropped unexpectedly to a low unseen since April 2009: 9%. Better yet, numerous surveys and CEO reports are optimistic: the outlook for 2011 is to refocus on innovation, competition, and hiring [2].

Redfish Technology reports surging demand in Software as a Service and Cloud Computing as well as Solar and Clean Tech companies, “From VP of Sales in high tech positions to PV Project Engineers, Read more »

Companies Refocus on Innovation, Competition, Hiring

Filed under: Employer, Human Resources / Capital, Recruiting, Staffing & Employment News, Talent Acquisition

Staffing & Employment News:

Companies Refocus on Innovation, Competition, Hiring

Despite uncertainty, companies are refocusing on innovation, and hiring to gain/keep competitive edge. CEOs and search consultants express confidence in 2011. The biggest risks remain the recession, but talent acquisition may also be a challenge.

The latest short term data is in today. Despite a smaller gain than anticipated in payrolls, the U.S. unemployment rate dropped unexpectedly to a low unseen since April 2009: 9%. Short terms data aside, the outlook for 2011 is to refocus on innovation, competition, and hiring.

The 14th Annual Global CEO Survey [1] shows that CEOs are aiming at immediate growth and a big jump in revenue growth prospects over 2011. Confidence levels are rising across the board with more companies anticipating growing their payrolls than they did in 2010. According to the survey, as hiring plans gear up, a shortage in talent is becoming more apparent; two-thirds of CEOs believe they’re facing a limited supply of skilled candidates. Read more »

What is the Results-Only Work Environment, aka ROWE?

Filed under: Best Practices, Candidate / Job Seeker, Employer, Human Resources / Capital, Talent Retention, Work-Life Balance

What is the Results-Only Work Environment?

A Results-Only Work Environment is a rapidly growing management strategy that evaluates employees based on their performance, not their physical presence.  In a ROWE, people focus on results and only results – increasing the organization’s performance while creating the right climate for people to manage all the demands in their lives . . . including work. Read more »

How America Can Create Jobs . . . by Andy Grove

Filed under: Jobs/Employment, Tech Trends

How America Can Create Jobs

By Andy Grove, of Intel & Lecturer in Management Stanford Graduate School of Business

This is an interesting article discussing the need to recreate the scaling process in the U.S., i.e. nurture the start-up, fund it, but then rather than expatriate the manufacturing abroad, keep the jobs domestic. In this way not only is there more U.S. employment but we can also harness and nurture the scaling and innovation that comes with being an integral part of an effective ecosystem in which technology know-how can accumulate, experience can build on experience, and closer relationships can be forged between suppliers and customers. The author cites examples of the job machine (scaling and innovation process) breaking down in computers, and in alternative energy. Photovoltaics, a U.S. invention, are now primarily manufactured in China. “U.S. employment in the making of photovoltaic films and panels is perhaps 10,000—just a few % of estimated worldwide employment.” Not only have we foregone a large number of jobs, we risk breaking “the chain of experience that is so important in technological evolution. As happened with batteries, abandoning today’s “commodity” manufacturing can lock you out of tomorrow’s emerging industry.” Read more »