Latino USA

Are Latinos Saving Nebraska's Economy? / by Maria Hinojosa | June 6, 2014

Are Latinos Saving Nebraska’s Economy?

Dan Mulhall owns a plant nursery and landscaping firm. He employs about 200 seasonal employees, who usually work for nine months a year. Mulhall says he’s tried to comply with immigration law, applying for temporary work visas for his workers. But the visas run out quickly and it’s hard to find all the workers he needs among Nebraska’s residents. So two years ago, an immigration audit found more than forty of his workers were not authorized to work in the US and he had to fire them. The workers went to work for a local competitor.

“I won’t begrudge the guys or gals for doing that,” says Mulhall. “I’m glad they didn’t have to leave. It’s just the system doesn’t make sense to us, it doesn’t work.”

Nebraska’s Latino population has increased rapidly in the past two decades. There are not near 200,000 Latinos, roughly more than ten percent the total state population. Most of the growth comes from native-born Latinos, but also from immigration from other US states.

“Nebraska is a state that desperately loses population,” says Lourdes Gouveia, a sociologist at the University of Nebraska at Omaha. “If it was not for immigration it would’ve lost population the last two censuses.”

Like other studies on immigration economics in the United States, several studies from the University of Nebraska show that Latino immigration has had a positive impact on the state’s economy. “The data is incontrovertible: immigrants contribute two and a half billion plus a year to production to the state,” says Goveia. “They generate nearly 20,000 jobs and they pay taxes a little above of what they receive in benefits.” The studies, however, do not distinguish between documented and undocumented immigrants.

A big example of the Latino immigrants’ impact on the economy is the state’s meatpacking industry. During the 1970s, the sector’s unions were busted. The wages plummeted, the benefits and pensions disappeared and the jobs stopped being attractive to locals. So in the 1980s, industry leaders revamped the sector, moving factories to the countryside into towns like Fremont and Lexington in Nebraska. To find the new workforce, they turned to Latino immigrants in California, Texas, and soon they even moved south of the border.

The industry’s new reality is that the cattlemen and meatpacking factory owners would struggle to fill the jobs without the new Latino workforce. 

Opponents of immigration turn to the Federation for American Immigration Reform – FAIR – for numbers against immigration. FAIR believes this incoming undocumented immigrant workforce is actually hurting the state’s economy, and that it’s the cause of declining wages and the quality of jobs. Their studies say that business owners pocket the profits while American taxpayers are left to pick up the check for healthcare and school for the incoming undocumented Latino immigrants.  

“What we are doing is creating a subsidized labor pool for a lot of industries,” says Ira Mehlman, FAIR spokesperson. “These are not mom and pop shops. And it’s another form of subsidy.”

FAIR advocates for a return to high-paying jobs in sectors of the economy. And they want reforms and law enforcement that will make undocumented workers leave on their own. “If you make it clear to people that even if you can get into the United States illegally, you’re not going to get a job because the government is out there policing the labor force, the jobs are going to dry up,” says Mehlman.

The University of Nebraska’s studies find that the foreign-born workforce in the state put more money in through income, gas and sales taxes than they take in social services. It’s also unlikely that wages will hike in the near future, attracting more of the native-born workforce. But what is certain is that the new immigrant workforce has become vital to many of Nebraska’s key industries.

Even as Nebraska’s Latino population grows, the state will remain predominantly white, even in 2060 when Latinos become 25 percent of the population. Lourdes Goveia says that the new Latino workforce is the new reality of the state, and that the immigrants have become an easy target for political electioneering from outside the state.

 

 

 

 

 

 

 

Photo by Scott Olson/Getty Images 

CONTRIBUTORS
MarlonBishop

Marlon Bishop

Marlon Bishop is a radio producer and journalist with a focus on Latin America, New York City, music and the arts. He got his start in radio producing long-form documentaries on Latin music history for the public radio program Afropop Worldwide. After a stint reporting for the culture desk at New York Public Radio (WNYC), Marlon spent several years writing for MTV Iggy, MTV's portal for global music and pop culture. Marlon has also lived and travelled all over Latin America, reporting stories as a freelancer for NPR, Studio 360, The World, the Village Voice, Billboard and Fusion, among other outlets.

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Camilo Vargas

Camilo Vargas went from his native Colombia to the Columbia University Graduate School of Journalism. He joined Latino USA after a fellowship with Univision Noticias and Univision’s Investigative Unit. Before coming to the US, Camilo was a researcher for the Universidad de los Andes and the Colombian government, specializing in armed conflict and US-Latin America relations. He holds a BA and an MA in international relations from Universidad de los Andes in Bogota and an MS from Columbia’s Journalism School. He’s reported on the drug war, national politics, and same-sex salsa.

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