An information and analytics digest for everyone going abroad or staying home
Immigration

Nobody wanted to leave

Nobody wanted to leave

The new US immigration legislation, which will mainly affect the fate of a multimillion-strong army of illegal workers, is currently under active discussion. Through this law, American politicians seek to achieve three goals. First, to regulate and reduce the flow of illegal immigrants across the U.S.-Mexico border. Second, to address the status of those illegals already in the United States. And third, to meet the growing labor needs of American business. The intensity of passions has reached such a level that several major American cities have seen mass rallies of both supporters and opponents of the new law.

Guest Workers

The bill includes provisions to strengthen border control through the installation of high-tech equipment, increase the number of border patrols, build a 700-mile wall along certain sections of the U.S.-Mexico border, and toughen penalties for organizing labor smuggling. In addition, it provides for higher fines for employers who use illegals (up to $20,000 for each illegal worker) and mandatory employer verification of all hired workers through a special nationwide computer system. The bill also prohibits providing illegals with any type of medical assistance, except emergency care.

After adoption by the House of Representatives, the document was sent to the Senate Judiciary Committee for review and refinement. The committee generally agreed with the proposals to strengthen border control, but at the same time came up with several – very substantial – additions and proposals concerning the economic side of immigration. For example, it proposes to significantly increase the annual number of green cards (residence permits). The main point of the Senate committee's proposals is the "guest worker program," under which up to 400,000 temporary workers could enter the U.S. annually on work visas for up to six years. After their "guest" work, they can apply for permanent residence. And five years after that – for American citizenship.

President Bush generally supports the "guest program." Streamlining immigration policy was one of the main promises with which he came to the White House in 2000. True, the 9/11 attack brought other priorities to the forefront.

This same program will allow those immigrants who are already living illegally in the States to legalize. True, to do so they will have to register with police authorities, pay a fine of $1,000, undergo a law-abidingness check, and pay all taxes they "owe" the state for the period of their illegal stay. They are issued a permit – a work visa – after which they can apply for a residence permit and then follow the "normal" path of naturalization. Critics of the law call this program an amnesty.

The Senate debates revolve mainly around the possible economic consequences of increasing the number of foreign labor migrants (by some estimates, their number could rise in all visa categories to 800,000 people per year, while today six times fewer enter). The most emotional issue is the legalization of people currently living illegally in the United States.

Some Statistics

There are two ways by which a person becomes an illegal: the first is illegal border crossing; the second is not leaving the country after a temporary visa expires. Currently, there are 11-12 million people in the United States illegally, of whom 7.9 million work. Since 2000, the number of illegals in the country has increased by 850,000. However, the figure of 11 million is very approximate; according to unofficial estimates, there are between nine and 20 million illegals in the country. At the same time, no one can give exact numbers.

The number of legal immigrants today stands at 13.1 million people. This figure does not include those who recently received American citizenship, so to speak, naturalized. The bulk of legal immigrants are green card holders. Another type of legally working immigrants are holders of guest work visas, which are usually issued for a period of two to seven years. Obtaining such a visa is sponsored by a potential employer.

According to one recent poll, American public opinion on illegal immigration is divided into three groups. One third believes that illegal immigrants should be allowed to stay in the country permanently, another third – temporarily, and the rest (about 27%) – that they should be deported home. 70% of respondents said that illegal residents should be denied social benefits and services. Approximately the same number of Americans believe that the children of immigrants must attend local schools.

Illegals: To Deport or Not to Deport?

Opponents of the bill argue that increasing the number of foreign workers reduces the chances of native-born Americans finding jobs. Immigrants agree to work for much lower wages, without mandatory health and social insurance. If employers are forced to hire mainly only American citizens, they will have to raise wages.

Supporters of the bill say that without a constant influx of fresh labor, the pace of development of the American economy will slow significantly, and it will not be able to compete with the dynamic economies of China, India, and Southeast Asian countries. Moreover, immigrants (especially illegals) take on jobs that native-born Americans do not want to do. These are jobs on agricultural farms, meat-packing plants, as cleaners and servants.

According to economists, illegal workers do not have a significant impact on the overall American wage level. The only social group that could noticeably benefit from a reduction in the number of immigrants is young people aged 15–20. Their earnings, in the absence of competition from illegal immigrants, could increase by 3–8%.

Without qualifications

The frequently cited argument that illegal immigrants take jobs that local residents do not want to do does not withstand impartial criticism. According to the American Center for Immigration Studies, immigrants constitute a majority (about 60%) in only four of the 473 occupational categories officially recognized in the United States. These are masons, tailors, product sorters, and beauty salon workers. Even in industries where the share of illegal workers is relatively high, the majority of employees are American citizens. The highest level of illegal workers is in agriculture and fishing – up to 24%. In the service business, mainly cleaning, about 17% of workers are illegal immigrants; in construction, their number does not exceed 15% of total employment in the industry; in the food industry, only one in ten workers is there illegally; roughly the same proportion in manufacturing.

However, as many analysts believe, the situation could change dramatically, and not for the better, if the American economy enters a period of recession. In any case, the impact of the shadow sector on wages, prices, and the overall health of the American economy is much less than the impact of such macroeconomic trends as production automation and trade globalization.