Economic impact of immigration in the Rural Midwest

Economic impact of Economic impact of immigration in the Rural immigration in the Rural

MidwestMidwestHimar HernandezCommunity Development Specialist

Iowa State University Extension

Quick Facts•14.8% of the U.S. population is Hispanic• 4.7% of Wisconsin’s population is Hispanic•1.4% in Green County – 1.2% in Lafayette County

•7.3% of people in Wisconsin speak a different language other than English at home

•Hispanics are not new to Wisconsin. They first came as Migrant Seasonal Farm workers at the end on the 19th century

Quick Facts•Wisconsin’s Latino population more than doubled between 1990 and 2000• 80% of Latinos reside in Southeast Wisconsin•1.4% in Green County – 1.2% in Lafayette County

•7.3% of people in Wisconsin speak a different language other than English at home•Hispanics are not new to Wisconsin. They first came as Migrant Seasonal Farm workers at the end on the 19th century

Then vs. Now

42% of the Wisconsin Latino population is 18 years or younger. 23% of Wisconsin’s total population is under 18 years of age.52% percent of Hispanic households in Wisconsin have children under 18 years of age. 35% of Wisconsin’s households have children under 18 years of age.30% percent of Hispanics have high school or higher education. 85.1% of people in Wisconsin have high school or higher education

Quick facts

Hispanic households in Wisconsin, on average, contain…

3.1 persons

3.8 persons

non-Hispanic households

Percent of Hispanic population that is under 18 year years of age

42%

23% of Wisconsin’stotal population

Is under 18

What does this mean to the costs in our communities?

But some of these costs are mitigated by federal and state funds that come in

On the long run studies show that immigration overall benefits the local economy

What is going on today?Rural communities have struggled due to the economic decline in the agriculture and in natural-resources

•Brain drain (Over 60% of University of Iowa students are planning on leaving the Midwest once they graduate)•Workforce continues to age•Companies are not attracted to areas in which population continues to decrease•Decline in the tax base

Why is there growth in the Midwest?

Why are the growth in the Midwest?

•It is estimated that 95% of the immigrant Latino population in the midwest comes from rural areas (VERY RURAL)•Nearly 97% previously lived in a big city in the United States and did not like it

Small businesses in Wisconsin

• US Census – • 1% of the businesses are owned by Latinos in WI• 6.8% of businesses owned by Latinos nationwide• These businesses had sales receipts of $288

million dollars• These businesses had a combined payroll of $54

million dollars

Small businesses and the downtowns

• 96% of the businesses are located in downtown areas

• Most businesses are family owned• Most are started with family or friend’s money• Most are not members of chambers

Small businesses phases

• 1st phase – Grocery stores and restaurants• 2nd phase – Other services• 3rd phase – Fully part of the local business

networks

What is next in the immigration?

• Bigger influx from Africa • More family related immigration vs. illegal • More becoming US Citizens• New groups will continue to bring their challenges

and their benefits

Impacts - summary

• Initial costs are high• Initial issues with diversity• Will open businesses in downtowns and rural

communities• High purchasing power• Most of the money stays in the community. Small

percentage is wired to the countries.