In its seminal report on "The War for Talent," McKinsey & Co. found "in today's competitive knowledge-based world, the caliber of a company's talent increasingly determines success in the marketplace. At the same time, attracting and retaining talent is becoming more difficult, as demand for highly skilled people outstrips supply."
North Carolina's future health similarly depends on our ability to recruit and retain world-class talent - and that pipeline has traditionally been fueled by our colleges and universities, corporate recruitment and refugees from the Northeastern United States. But one of the largest streams of talent over the last 20 years has emerged from the explosion of Hispanic immigration.
According to the latest U.S. Census data, North Carolina saw a 111 percent increase in the state's Latino residents between 2000 and 2010 - making us the sixth fastest-growing state nationally (accounting for almost a third or our population growth). The Triangle, Triad and Charlotte are among the fastest growing regions nationally. Furthermore, the population growth skews young with three-quarters of Latinos in North Carolina younger than 35 - leading to a growing baby boom (one estimate shows that more than one-third of babies born at Raleigh's WakeMed are Hispanic). In short, we are experiencing a huge injection of talent through immigration, and it will likely only get more pronounced with time.
So, what does that mean for our economy?
A 2005 study by UNC's Kenan Institute shows that Hispanic immigrants contribute more than $9 billion to the economy annually through its purchases, taxes, and labor (with estimates of these contributions going up to more than $20 billion annually by 2011).
Of that $9 billion in 2005, tax revenues were estimated at $756 million while costs to the state to cover education, health care, and corrections totaled $817 million. "The net cost to the state budget must be seen in the broader context of the aggregate benefits Hispanics bring to the state's economy," the report explains. "Hispanic workers contribute immensely to the state's economic output and cost competitiveness in a number of key industries." For instance, without Hispanic participation in construction, it is estimated that output would be lower and costs as much as $1 billion higher.
Data also point to a strong entrepreneurial drive among Latinos. A U.S. Census Bureau survey of business owners shows that between 2002 and 2007, Hispanic-owned businesses nationally grew 43.7 percent compared with a 14.5 percent increase of non-Hispanics (during the same period in our state, Latino businesses grew 135 percent). Yet, average receipts nationally in 2007 were only $152,700 for Hispanics vs. $445,000 for non-Hispanics. Hispanic businesses are also more likely to fail, particularly in industries that require higher levels of education and financial capital.
These numbers beg the question: How can we harness the full potential of North Carolina's growing Hispanic population in a way that is a net positive for our state and economy?
Certainly, a clear pathway to legal residency is critical. Especially when 47 percent of adult undocumented Hispanics have less than a high-school education and more than a quarter are uninsured (with more than one-third of children of unauthorized immigrants living in poverty).
Furthermore, in an age when 85 percent of jobs demand higher education, we need to reduce barriers to college. The DREAM Act aims to provide citizenship to Latinos who came to the United States as young children and who either serve in the military or graduate from college. An estimate from the National Immigration Law Center says that if only half of North Carolina's 51,000 potential beneficiaries attain a bachelor's degree, they will generate more than $285 million in tax revenue for the state annually.
We also need strong entrepreneurial support systems for Hispanic businesses. The Latino Community Credit Union has become one of the fastest-growing credit unions in the country by providing loans and critical technical assistance to increase the likelihood of success among Hispanic-owned businesses. Accion Emprendadora in Durham, the N.C. Hispanic Chamber of Commerce, and the newly established branch of the National Hispanic Entrepreneur's Organization at UNC Charlotte's Ben Craig Center are also important support networks and steps in the right direction.
In short, by increasing the number of legal Latino college graduates in our state and helping them launch and grow thriving businesses, we will benefit economically - not to mention culturally. With foresight, we also have the opportunity to expand exports to Latin America and stimulate foreign investment.
We are fortunate to be a destination for talent. What can we do to help it (and us) thrive?
Note: As we go into the holidays we are looking for stories of innovative organizations lifting the spirits of their communities during this festive season. Please send ideas to authors@bullcityforward.org. Thanks!
