Experts: Parts of Obama immigration plan good for business; may fall short for tech workers

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1 Experts: Parts of Obama immigration plan good for business; may fall short for tech workers By Bill Shea and Dustin Walsh November 23, 2014 "I see this as beneficial for the individuals involved but having little effect on the local business/entrepreneurship climate." Kurt Metzger President Obama's temporary deportation relief plan for about 5 million undocumented immigrants includes elements that have some local business executives and immigration experts hailing the coming changes as an economic positive for metro Detroit. "Taking executive action does not just bring certain undocumented immigrants into the mainstream, it also allows entrepreneurs to more easily establish businesses in the U.S.," said University of Detroit Mercy School of Law Professor David Koelsch, who also is director of the law school's Immigration Law Clinic and the Asylum Law Clinic. "It allows foreign STEM graduates to put down roots here, and it expedites the process for skilled workers to gain status in the U.S." In a speech to the nation Thursday night, President Obama said he would issue an executive order that allows qualified undocumented immigrants a renewable three-year legal status.

2 The plan allows them to apply for work permits as long as they meet government-set criteria, have no criminal record, provide personal data, and pay a nearly $500 fee. The president also said other labor-related immigration issues would be tackled, such as modernizing the green card system and extending certain employment programs for international students in high-tech fields. Professor David Koelsch Undocumented immigrants being able to live more openly in metro Detroit and elsewhere are a net benefit, Koelsch said. "Each person, whether high- or less-skilled, who benefits from this action is a consumer. People who know their futures and feel secure are more willing to buy houses, cars, and everything else they need for a long-term future in our community. That spending and investment has a significant positive ripple effect throughout our local and regional economy," Koelsch said. Alexandra LaCombe, partner and head of the Troy office for immigration law firm Fragomen, Del Rey, Bernsen & Loewy PLLC, said Obama's new guidelines on immigration are a positive for employers. Alexandra LaCombe "This isn't necessarily a pathway for illegal immigrants to become legal in the U.S., but a path for them to work here legally," LaCombe said. "This will no doubt help employers looking to fill positions." However, Michigan has so few illegal immigrants, LaCombe said, that while the ruling is beneficial it will have a marginal effect on the workforce. Michigan in 2012 had 120,000 undocumented immigrants, according to the latest data available from the Pew Research Center's Hispanic Trends Report published on Nov. 18. That's up from 25,000 in 1990, or a 380 percent increase. Undocumented immigrants account for about 1.6 percent of Michigan's labor force, according to Pew's data. Most undocumented immigrants in Michigan came from Mexico (56 percent), followed by India (14 percent) and China (6 percent).

3 Sandy Baruah, president and CEO of the Detroit Regional Chamber, said he missed the president's speech but has been catching up on subsequent reports and analyses. In what he's read so far, he doesn't see much that aligns with the chamber's immigration concerns. "We're really focused on the economic impact issues, the positive impact of immigration on high-tech industries," he said. Sandy Baruah The chamber wants to see an influx of immigrants who invest in the station, "bring needed talent and skills to the Michigan workplace" and "fill unfilled jobs with Michigan companies," Baruah said. Still, there likely will be a positive impact at the lower end of the economic spectrum as more undocumented immigrants legally enter the workforce, he said. "The agriculture industry, the service industry, such as hotels and retails, should be impacted in a positive way. Those are not unimportant at all," he said. Baruah questioned the president's timing of his order, calling it "a little odd" and termed the plan as largely aimed at "immediate humanitarian issues that are important to (Obama)." Visa concerns LaCombe echoed Baruah's concern about the lack of details about high-tech immigration. She said she was disappointed the president didn't include expansion of the H-1B non-immigrant visa program in his plan, something she said hurts the economy. "It is hindering our nation's economic growth that there are not enough available work visas for immigrants who seek to fill the vacant positions of highly skilled roles in the U.S.," she said. "Too many highly educated job positions are vacant because there are not enough qualified workers within our borders and immigrant students who study here find difficulty in receiving permission to stay and work." The H-1B is targeted at highly skilled workers usually scientists, engineers, or computer programmers that the U.S. deems in short supply, and it allows them to stay up to six years. H-1B visa holders also can apply for a permanent alien resident status, known as the green card. This year, the number of H-1B visas was capped at 65,000, with another 20,000

4 for applicants with advanced degrees. "The current H-1B quota is an artificial number that has nothing to do with the economy, the market or the needs of U.S. employers, and that needs to change," she said. "Our government must recognize that the number of highly skilled, highly qualified workers admitted into our country each year must be adjusted by market demands. While the H1-B visa program in the U.S. remains unexpanded, other countries welcome highly skilled workers with open arms." In January, Gov. Rick Snyder said he would ask Washington to provide the city of Detroit with 50,000 EB-2 visas over five years and so far has gotten no response. The EB-2 immigrant visa is for professionals with advanced degrees and individuals with exceptional ability in the sciences, arts, or business, according to the U.S. Citizenship and Immigration Services. An EB-2 usually requires a job offer and a labor certification issued by the Department of Labor to ensure that the foreign work doesn't displace a qualified U.S. worker, the agency said. Other issues Steve Tobocman The president's speech also touched on other aspects of immigration policy, and his pledge to expand a high tech job training program for immigrants has piqued the interest of Steve Tobocman, director of Global Detroit, a nonprofitfunded study of the immigration effects on metro Detroit's economy. The president said the "Optional Practical Training" initiative popular with the tech sector will be expanded and extended, but specifics won't be known until worked out by the Department of Homeland Security. The OPT program allows certain types of international students from U.S. colleges to work at American companies for a year after graduation. In 2008, President Bush extended the limit to 29 months for graduates in science, technology, engineering and mathematics (STEM) fields. Further expansion will help Global Detroit's local efforts. "It's in line with what we're trying to do on the ground," Tobocman said. Global Detroit in 2011 was one of the co-creators of the "Michigan Global Talent Retention Initiative" that aims to connect Michigan's 28,000 international students with unmet talent needs of Michigan companies.

5 It links such students from 32 Michigan colleges with more than 60 employers. Most of the students are in the STEM fields. There was a Michigan GTRI conference in Detroit on Friday attended by more than 350 international students, Tobocman said. A blunt voice Kurt Metzger Longtime demographer Kurt Metzger was blunt in his assessment of the president's plan and what it means locally. "Our fortunes are not going to change because Obama has created a three-year window for certain segments of the 'illegal' immigrant pool," said Metzger, the retired founder of Data Driven Detroit who spent nearly 40 years compiling information and statistical analysis locally. "In fact, while significant, the Michigan and local numbers affected are relatively small compared to other areas in the country." Instead, the president's plan is an opportunity to bring more attention to the immigrant community already in metro Detroit and the assets that they bring, said Metzger, now mayor of Pleasant Ridge. "I see this as beneficial for the individuals involved but having little effect on the local business/entrepreneurship climate," he said. "Of course, there will be a number of folks who will now feel more comfortable 'going public.' Within this group, there will undoubtedly be some entrepreneurs who can come forward." Metzger endorses Global Detroit's various initiatives and suggests a regional welcoming initiative of local governments and ethnic chambers to develop attractions plans. "Highly educated immigrants will continue to migrate to communities with strong schools, safety and other city services," he said. Additionally, the city of Detroit has to overcome "the negative vibe that the city has given to immigrant groups for years," Metzger said, adding that Detroit must do more to develop its Office of Immigrant Affairs. He also recommends the city and Detroit Public Schools have more interaction with Detroit's Latino community, improving the relationship between foreignowned businesses and local residents, and capitalizing on Wayne State University ranking third among Michigan colleges for international students. Bill Shea: (313) , bshea@crain.com.