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Undocumented workers removed from Arizona's workforce.

Migrantless Arizona Output would Drop 8.2% a Year

"You can't just be approaching people because they are Hispanic."

 

TUCSON (By Ryan Randazzo, Arizona Republic) July 12, 2007 — If all undocumented workers were removed from Arizona's workforce, economic output would drop annually by at least $29 billion, or 8.2 percent, according to a University of Arizona report released Wednesday.

The study is based on Census Bureau and other data from 2004, the most complete year available, and assumed most non-citizens in the state are undocumented.

It also found that Arizona's documented and undocumented immigrants generate nearly $44 billion in output annually.

 

"Output" includes the value of goods produced in industry, wages and profits.

"I'm not making a stand on what policy should be," said author Judith Gans, a program manager at the university's Udall Center for Studies in Public Policy. "This just shows what's at stake." Gans conceded that the research does not capture all costs associated with undocumented immigrants but says it caught significant expenses.

"It is not the purpose of this study to address the myriad issues surrounding illegal immigration or to imply in any way that illegal immigration is not a problem," Gans wrote in the study, funded by the Thomas R. Brown Foundation in Tucson.

The group funds academic research and promotes education about the economy.

The study also looked at what would happen to specific industries that lost most non-citizen workers. The figures assumed unskilled citizens would fill some positions.

Without most non-citizen immigrants, the simulations showed:

• $6.56 billion in lost construction output.

• $3.77 billion lost in manufacturing.

• $2.48 billion lost in service sectors.

• $600.9 million lost in agriculture.

"Filling the specific jobs in question would require large numbers of low-skilled workers, and the U.S. education system produces relatively few of them," Gans said. "There simply aren't enough additional workers in Arizona to fill the jobs."

Experts do not expect that companies will fire undocumented workers on Jan. 1, the day the state's employer-sanctions bill goes into effect.

There are an estimated half-million such immigrants in Arizona.

"If they think their folks are illegal, I think they have to address that," said Troy Foster, an employment lawyer with Ford & Harrison in Phoenix. "But they have to be cautious. You can't just be approaching people because they are Hispanic."

Foster advises clients not to be too aggressive in going after suspicious workers unless they have knowledge of their illegal status, but he said the new law certainly will keep companies from hiring more undocumented workers.

"The real impact will be on the back end," Foster said. "In four or five years, we will see an impact because of the growth-restraint issue."

 

 


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