Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs senior executives, today released a new report that found increasing high-skilled immigration will result in overall job creation, increased innovation, and economic growth across the country. The report, “Closing the Skills Gap: The Data Behind Talent Shortages, High-Skilled Immigration, and Economic Impact,” examined the severity of the current skills gap that exists in the United States, the impact it’s having on the economy, and how increasing high-skilled immigration can help fill talent shortages in communities across the country. The report found that, if left unaddressed, the talent shortage of workers with a post-secondary degree will result in more than nine million job vacancies and $1.2 trillion in lost production over the next decade.
“Throughout our history, immigrant innovators, entrepreneurs, and workers have come to the U.S., started businesses, created jobs, fueled innovation, and grown our economy,” said Linda Moore, President and CEO, TechNet. “In fact, nearly half of America’s Fortune 500 companies are founded by immigrants or the children of immigrants, with those companies employing 14 million people. This report clearly shows that increasing high-skilled immigration will shrink the skills gap, create jobs for American workers, and grow our economy.”
“We are in a global race for talent. The United States must welcome the world’s best and the brightest, and their families, so they can put their talents to work for the American economy. Last month, we applauded the immigration provisions included in the House reconciliation package. It’s the first solution in years to help businesses strengthen our economy by filling immediate vacancies. We remain optimistic that these provisions will remain in the Senate reconciliation bill,” Moore added.
The latest data shows there are more than 10 million current job openings across the U.S. with more than seven million people unemployed, a gap of three million. The ability to find workers is negatively impacting businesses bottom lines. More than 80 percent of small businesses reported a loss of sales due to labor shortages, with 19 percent experiencing serious losses. Businesses are also struggling to find the candidates they’re seeking. TechNet’s report showed 64 percent of employers report a skills gap at their company and that failing to reduce the current skills gap could reduce productivity by 51 percent, depress economic growth by 42 percent, and reduce innovation by 43 percent.
To help fill the talent shortage, the U.S. must increase high-skilled immigration across the country. The report underscored that while education reform is critical for narrowing the skills gap in the future, education is a two-decade investment and will not solve the current U.S. skilled labor shortages. With the U.S. not producing enough skilled degree holders to fill demand, expanding high-skilled immigration is the best solution to shrink the current skills gap and contribute to new business development and economic growth.
The report also showed that expanding immigration does not come at the expense of American workers. Data from the report showed immigration boosts employment and earnings potential for American employees. The report found that immigration expands the federal, state, and local tax base, increases entrepreneurial activity and innovation, creates more jobs and opportunities for Americans, and strengthens America’s position as a global leader.
The report analyzed the state-by-state prevalence of immigrant entrepreneurs and jobs generated from skilled immigration in academics and the workforce. The data showed that high-skilled immigration resulted in overall job and economic growth, increased productivity and innovation, and a more collaborative workforce culture in states across the country.
Despite the positive effects of immigration, current H-1B visa guidelines have remained unchanged over the past 14 years despite the growth of the U.S. economy. However, there is bipartisan support in Congress to reform U.S. immigration policy and increase high-skilled immigration:
“The United States used to be the top destination for the world’s best and brightest innovators seeking a home for their companies. Sadly, that has changed. Because of our outdated immigration system, the technology sector is now turning to other countries, such as Canada, that welcome highly skilled immigrants and provide companies with the flexibility they need to grow and thrive. Congress can change that,” said Congresswoman Zoe Lofgren (D-CA), Chair of the House Immigration and Citizenship Subcommittee. “By modernizing our immigration laws and creating a dedicated visa for founders of start-up companies, we can accelerate economic growth, create jobs for American workers, and ensure our country is the top choice for the next-generation of entrepreneurs worldwide.”
“As a former small business owner, the more the government can empower our country’s entrepreneurs, the better we are as a nation,” said Rep. John Curtis (R-UT). “We must work to fix our broken immigration system and connect workers with industries most in need across the country. Fixing the talent shortage that exists will help businesses expand and compete globally.”
“We must put aside our partisan differences and fix our broken immigration system in a way that protects our borders and strengthens our economy,” said Congresswoman Deborah Ross (D-NC). “I am fortunate to represent a diverse district that includes a large community of high-skilled immigrants in the Research Triangle area. These immigrants make our country and our economy stronger by addressing workforce shortages in key industries and by using their immense talents to grow businesses and solve problems. For the sake of these hard-working men and women and the employers in North Carolina who rely on them, we need urgent action in Congress to reform our dysfunctional immigration laws.”