Opinion: Immigrants are essential to Philadelphia’s economic growth and prosperity

Cities like Philadelphia have a binary choice — they can either choose growth and prosperity or they can decide to manage decline. Mayor Cherelle Parker has made every indication that she is choosing the former. She wants an inclusive economy, providing all Philadelphians with self-sufficiency pathways and upward mobility. The question is how? The issue raises much debate on everything from the economic catalysis of sports arenas to the impact of lowering taxes.

But there is one variable, upon which Philadelphia is increasingly relying as a growth strategy, that has an indisputable track record toward expanding everyone’s economic opportunity: welcoming and integrating immigrant talent.

It may sound far-fetched. After all, we’re susceptible to painting immigrants as caricatures on opposite ends of a false spectrum. One side frames immigrants as villains who take away our jobs, undermine our safety, and erode our cultural fabric. The supposed counterargument, which we’ve all imbibed from Emma Lazarus’s famous poem, frames immigrants as victims: the poor, huddled masses whom we must help — even if it costs us dearly.

Let’s rely on facts. When we do that, it is clear that neither extreme reflects the truth about immigration. The evidence resoundingly shows that immigrants are positive contributors to everything that makes for a successful society. We need them much more than they need our compassion or fear. Mayor Parker and her team need them if they truly want to build the Philadelphia economy they envision.

Start with employment. Do you want jobs in your community? Then you want more immigrants. They attract investment by businesses from their home countries, which in turn expands employment opportunities for everyone. In fact, according to research published this week The Pew Charitable Trusts, immigrants accounted for around a third of the employed labor force growth that Philadelphia experienced between 2010 and 2022. During the same period, the percentage of foreign-born city residents in our region’s workforce increased by 50%. Employers are growing by drawing more investment. That in turn creates more job opportunities, not just for the foreign-born, but for workers and their families who have been here for generations. That’s good for all of us.

How about new business starts? If you believe that having a constant stream of new entrepreneurs taking a stab at realizing their dream is good for our community, then Philadelphia’s economy needs more immigrants. Nationally, immigrants are 80% more likely to start new businesses than natives. Those new businesses — from the new corner restaurant to behemoths like AT&T and Google — create tons of jobs. In Philadelphia, Pew’s research shows that immigrants now constitute a whopping third of all Philadelphia entrepreneurs, and that number is growing. These business owners play a critical role in supporting and growing our economy. They help revitalize neighborhood commercial corridors, provide amenities that improve our day-to-day quality of life, and create jobs for themselves and others.

Whether you work for someone or run your own business, you would experience worker and customer shortages were it not for the essential jobs immigrants fill and for their purchasing power, which also contributes to our tax base. Pew’s report tells us that the majority (57%) of Philadelphia’s immigrants are in their prime working years (25 to 54) compared with only 40% of the city’s native-born population. The more workers we have, the more taxes are paid, and the stronger our city’s ability to provide for all of the things that make a difference in our quality of life: vibrant parks, open libraries, streets with proper lighting, etc.

And immigrants, irrespective of their status, are definitely paying taxes. Nationally, we’d collect about $10 trillion less in federal taxes and about $200 billion less in state taxes without immigration participation in our workforce. Popular programs like Social Security and Medicare would be on life support. In Philadelphia, Pew estimates that immigrants contribute approximately 17% of our city’s wage tax base, 23% of the taxes raised from the business net-profits tax, and 15% of our property tax base, which is also essential to the School District of Philadelphia.

Their purchasing power also leads to long-term investments in our city that propels stability and neighborhood preservation. Immigrants or their spouses now comprise 21% of all owner-occupants in Philadelphia — a number that exceeds their portion of the total population. They are making Philadelphia their home for the long haul.

Finally, immigrants bring a measure of creativity to our economy that ultimately results in more opportunities. Our daily life has been profoundly improved by the new technologies, products, and companies that immigrants bring. Like the COVID vaccine, Zoom or ChatGPT. Or foods you eat often like hamburgers, tortillas, and Greek yogurt. Without foreign talent, the innovation engine of America would be decimated. Immigrants are responsible for 36% of patents in the US, despite being only 16% of inventors.

Locally, one industry that exemplifies how that creativity benefits all of us, is Philly’s food scene. In a recent Wall Street Journal article praising the virtues of making Philadelphia a destination for those looking for a getaway, the majority of dining recommendations were all immigrant-driven. From the vibrant outdoor ethnic pop-up markets in FDR Park to the revitalization experienced by the Italian Market through Vietnamese, Mexican and Cambodian entrepreneurs to the dine-around-the-world-like blocks in the Northeast, Philly has become an internationally renowned dining destination because of immigrant entrepreneurs. Their creativity is reflected in the delicious plates they serve.

The evidence is clear and nonpartisan. The economically prosperous and socially vibrant city made possible by welcoming newcomers is there for the taking. We can either choose growth or decline. If we choose the former, immigrants will be front and center in getting us there.

Anuj Gupta
President and CEO, The Welcoming Center

Zeke Hernandez
Author, The Truth About Immigration
Max and Bernice Garchik Family Presidential Associate Professor at the Wharton School