Economy: Immigrants fuel Santa Clara County’s prosperity, says new report
They are thriving and contributing to the economy as entrepreneurs, innovators, and job creators
By Staff Reports
Immigrants in the South Bay are not just residents.
They are the lifeblood of every community in the region, including those in South Valley, according to a new report, “New Americans in Santa Clara County.”
Released in mid-September by the American Immigration Council in partnership with the Santa Clara County Office of Immigrant Relations, the report sheds light on the remarkable impact of immigrants on the local economy, labor force, and society at large.
Between 2016 and 2021, while the overall population of Santa Clara County experienced a 1.7 percent decrease, the immigrant population grew by 1.1 percent.
Without the influx of immigrants during this period, the county’s total population would have declined by 2.1 percent.
This statistic alone underscores the powerful magnetism of Santa Clara County, attracting talent and ambition from around the world.
In 2021, immigrants in the county held an astonishing $45.3 billion in spending power, a testament to their substantial economic contributions. They also paid $15.4 billion in federal taxes and $6.7 billion in state and local taxes during the same year. These financial contributions are instrumental in funding essential public services that benefit all residents.
“What a wonderful time to showcase the hard facts and numbers that lay out what immigrants currently do for our county, and what immigrants have always done for our country,” said Santa Clara County Supervisor Otto Lee in a press release. “Silicon Valley offers immigrants opportunity and hope, and in return the immigrants do more than their share in terms of contributing to the economic boom of the county, the Bay Area, and beyond.”
One of the report’s striking findings is that immigrants in the county are not just participants but leaders in various sectors of the economy. They make up 50.3 percent of business owners and generated an impressive $1.5 billion in business income. Immigrants are not just contributing. They are thriving as entrepreneurs, innovators, and job creators.
Moreover, immigrants are essential in fulfilling the county’s labor force needs, particularly in STEM fields and other key industries. Although immigrants comprise 40.6 percent of the county’s total population, they represent 67.2 percent of STEM workers, 64 percent of manufacturing workers, and 56.3 percent of professional service workers. Their diverse skills and talents help maintain Santa Clara County’s status as a global technology and innovation hub.
The report also highlights the role of immigrants in supporting the federal safety net, contributing $5.1 billion to Social Security and $1.8 billion to Medicare in 2021.
Their contributions not only bolster these programs but also ensure the financial stability of countless American families.
Furthermore, immigrants are instrumental in keeping jobs on U.S. soil. By 2021, they had helped create or preserve about 35,200 local manufacturing jobs that might otherwise have been lost or moved elsewhere. This underscores their significant impact on our local economy and job market.
“Santa Clara County, like the state of California, has a rich history of immigration, shaping the region’s culture and economy,” said Mo Kantner, senior director, policy and research at the American Immigration Council. “This report quantifies the multifaceted contributions immigrants are currently making across the county, and how their diverse skills and talents help create an inclusive, vibrant community.”
Through programs like Gateways for Growth, the county has seen the widespread benefits to entire communities when immigrants are able to contribute fully, particularly as entrepreneurs, workers in key industries, neighbors, and community leaders, said Molly Hilligoss, network director of Welcoming America in a press release.
“At Welcoming Week, we are happy to say that Santa Clara County is just one example of how immigrant inclusion is part of the recipe for sustainable population and long-term economic growth,” she said.
The report serves as a testament to the positive impact of immigration on the South Bay region, she added. It showcases how immigrants, with their diverse backgrounds and talents, are shaping Santa Clara County’s culture, economy, and future.
“As we move forward, let us continue to embrace and support our immigrant neighbors, fostering an environment where everyone can thrive and contribute to the prosperity of our community,” Hilligoss said.