Innovation and STEM Fields

Innovation and STEM Fields

For America to compete in the 21st century, we need a robust innovation economy—which requires a workforce skilled in the science, technology, engineering, and math (or STEM) fields. Yet American students are not entering those industries in sufficient numbers, and the United States is projected to face a shortage of one million STEM workers by 2022.1 Foreign-born students frequently gravitate towards STEM disciplines, making up roughly one out of every three individuals earning graduate-level STEM degrees each year. Our broken visa system, however, makes it difficult for many of them to stay after graduation—a reality that hurts the ability of our employers to expand and create more opportunity for American workers. 1 President’s Council of Advisors on Science and Technology, "Engage to Excel: Producing 1 million Additional College Graduates with Degrees in Science, Technology, Engineering, and Mathematics," February 2012. Available online.

Chinese Immigrant Establishes Law Firm in Cleveland

Chinese Immigrant Establishes Law Firm in Cleveland

Su HeBusiness Immigration Attorney, Professor, and Community Leader Su He came from a family of physicians in Beijing, China, so when she developed a passion for international business law, she needed to find new role models. Fortunately, she found the support she needed at Case Western Reserve University School… Read More

Indian Immigrant Founds B2B Software Firm in Cleveland

Indian Immigrant Founds B2B Software Firm in Cleveland

Sudhir AcharTechnology and Community Leader In 1991, Sudhir Achar emigrated from Bangalore, India to pursue his master’s degree in industrial engineering at Cleveland State University. Between classes, he worked as an international student ambassador, helping newcomers integrate. After graduation, he was hired by Philips Medical Systems (PMS), where he… Read More

New Report Shows Immigrants in Northeast Ohio Paid Over $1.5 Billion in Taxes and Held $3.9 Billion in Spending Power in 2019

New Report Shows Immigrants in Northeast Ohio Paid Over $1.5 Billion in Taxes and Held $3.9 Billion in Spending Power in 2019

CLEVELAND, Jan. 21, 2022 — A new report, New Americans in Northeast Ohio and Cuyahoga County, released today by New American Economy—now the American Immigration Council—in partnership with Global Cleveland, underscores the critical role immigrants in Northeast… Read More

New Report Shows Immigrants in the City of Los Angeles Paid nearly $15 Billion in Taxes and Held More Than $38 Billion in Spending Power

New Report Shows Immigrants in the City of Los Angeles Paid nearly $15 Billion in Taxes and Held More Than $38 Billion in Spending Power

Los Angeles, CA – A new report released today by New American Economy in partnership with the City of Los Angeles Mayor’s Office of Immigrant Affairs and the Coalition for Humane Immigrant Rights (CHIRLA) underscores the crucial role immigrants in Los… Read More

Indian Immigrant Makes Good on Dreams to Become Researcher

Indian Immigrant Makes Good on Dreams to Become Researcher

Saeed KhanRetired Professor, University of Florida – Department of Urology Growing up in his native India, Saeed Khan’s parents were adamant their eight children attend college. Khan was always impressed with textbooks—especially the references. “It became my dream to become a researcher so I could be cited at the… Read More

Mechanical Engineer Builds Bridges Across Communities

Mechanical Engineer Builds Bridges Across Communities

When General Electric Transportation/Wabtec offered Brittany Lee Fisher a job as a mechanical engineer in Edison Engineering Development Program (EEDP) in 2016, she jumped at the chance. The daughter of Korean and Japanese immigrants, Fisher knew the position would allow her to build a strong career and make her parents’… Read More

New Americans in the Columbus Metro Area

New Americans in the Columbus Metro Area

New research from New American Economy shows that immigrants paid more than $2.1 Billion in taxes in central Ohio in 2019. The new report, New Americans in the Columbus Metro Area, was prepared in partnership with US Together, the Columbus City Council, and the Franklin County Commissioners. In addition… Read More

New American Economy Statement on Trump Administration's Suspension of Green Cards

New American Economy Statement on Trump Administration’s Suspension of Green Cards

In response to President Trump’s decision to suspend much of U.S. immigration for 60 days, New American Economy issued the following statement:  “The President is rightly eager to get the economy moving again, but a 60-day suspension of green cards will only slow down that process and hurt American businesses… Read More

Michigan Business and Industry Leaders Launch Michigan Compact on Immigration and Call for Reform

Michigan Business and Industry Leaders Launch Michigan Compact on Immigration and Call for Reform

New research from New American Economy finds that immigrants contribute $2.1 billion in state and local taxes and hold $18.4 billion in spending power Lansing, Michigan — Today, a coalition of business and industry leaders came together at the Lansing Regional Chamber of Commerce to launch the Michigan Compact… Read More

Outsize Role in the Workforce

Immigrants punch above their weight class in the STEM fields, making up far larger portions of the STEM workforce than they do the U.S. population overall. This dynamic is particularly pronounced in several states. In New Jersey, for instance, immigrants make up almost two out of every five STEM workers, while accounting for only one in five of the state’s residents.

States with the Highest Share of Foreign-Born STEM Workers, 2014

Labor Shortages

In recent years, many U.S. employers have struggled to find enough STEM workers. This lack of manpower has real consequences for the economy—making it difficult for firms to expand and create jobs for American workers at all skill levels. In several specialized fields, like physical science and software development, the unemployment rates of U.S.-born STEM workers are particularly low, indicating there are simply not enough U.S.-born workers to meet the needs of employers.

Take a look at our latest research about the shortage of STEM workers.

U.S. Citizen Unemployment Rates in STEM Fields Most Heavily Reliant on Immigrant STEM Workers, 2014

Earning STEM Degrees

International students make up a large share of STEM graduate students. In 2014, more than a quarter of STEM master’s degrees and more than a third of STEM Ph.D. degrees went to students in the country on temporary visas. Meanwhile, the number of American citizen and permanent resident students pursuing graduate degrees in science and engineering fields actually fell by 6.3 percent between 2010 and 2013.2 Our broken immigration system means that many of these international students will struggle to remain in the country after graduation, despite employers needing them.

Sources:
2 National Science Foundation, Science and Engineering Indicators, 2016, Appendix Table 2-25. Available online.

Share of Ph.D.'s in Selected Fields Going to Students on Temporary Visas, 2014

States Graduating the Most STEM Students on Temporary Visas, 2014

States Needing STEM Workers

While every state was short STEM workers in 2015, the shortage was particularly acute in North Dakota and South Dakota, where employers listed 87 and 71 STEM positions, respectively, for each unemployed STEM worker. These are gaps that immigrants could help fill. In South Dakota, for instance, immigrants made up just three percent of all STEM workers in 2015, one of the lowest shares in the country.

States with Greatest Shortages of STEM Workers, 2014

Creating U.S. Jobs

Rather than reduce the number of jobs available to American workers, foreign-born STEM graduates often create additional jobs for U.S.-born workers. Research shows that when a state gains 100 foreign-born STEM workers with graduate-level training from a U.S. school, an average of 262 jobs are created for U.S.-born workers there in the seven years that follow.3 More specifically, the temporary visa (H-1B) program for high-skilled workers is also linked to job creation for American workers and economic growth. However, the current system fails not only to provide visas that companies need to grow, but also to protect against fraud and abuse.

Sources:
3 Madeline Zavodny, “Immigration and American Jobs,” The Partnership for a New American Economy and the American Enterprise Institute, 2011. Available online.

States that Stand to Gain the Most from Retaining More Foreign-Born STEM Graduates

The Impact of our Broken Immigration System

Since the recession, some of the most robust growth in high-wage, American jobs has occurred in cities. The high-tech companies fueling this growth cannot succeed and grow, however, without qualified STEM professionals—a group that can be difficult to find. An annual cap on the number of available green cards and H-1B visas hinders efforts to hire immigrant STEM professionals when no American workers are available. At right, we explore how the H-1B requests for computer-related workers that did not make it through the 2007 and 2008 H-1B visa lotteries impacted wages and the number of jobs available for U.S.-born tech workers in the two years that followed.4

Sources:
4 Partnership for a New American Economy, “Closing Economic Windows: How H-1B Visa Denials Cost U.S.-Born Tech Workers Jobs and Wages During the Great Recession," June 4, 2014. Available online.

Metropolitan Areas Hurt Most by 2007 and 2008 Denials in the H-1B Lottery

Driving Innovation

International STEM students and graduates are behind some of America’s most impressive innovations, from artificial skin to moldable metal. Studies show that immigrants with an advanced degree are three times more likely than U.S.-born graduate degree holders to file a patent. When universities increase their share of international students, they often receive more patents—boosting revenue and creating more opportunities for all students.

Share of Patents Awarded to Top Patent Producing Research Universities with at Least One Foreign-Born Inventor, 2011

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