Arizona’s Economic Future Hinges on Immigration Reform
As the 2024 elections approach, immigration has taken center stage in Arizona, a swing state with a unique position along the southern border. The state’s businesses are sounding the alarm about a severe worker shortage, which threatens to stall projects in crucial industries like construction, hospitality, and agriculture.
A Critical Workforce Shortage
Arizona’s workforce is comprised of 16.2% immigrants, according to a 2022 study by the American Immigration Council. Meanwhile, the state faces a staggering job shortage of 197,000 as of June, according to the Bureau of Labor Statistics. Monica Villalobos, president and CEO of the Arizona Hispanic Chamber of Commerce, warns that this shortage is having far-reaching economic consequences, including rising housing prices.
Construction Industry Hit Hard
“We have several members in the construction industry who can’t find workers to complete projects,” Villalobos says. “When they can’t complete projects, that means there’s a lack of housing.” This shortage is not limited to construction; it’s a widespread issue affecting multiple industries.
A Broken Immigration System
Michael Infanzon, a lobbyist with the Canyon State Business Alliance, describes the current legal immigration system as an “absolute fiasco” for both businesses and workers. He likens the cumbersome process to trying to navigate a lengthy and bureaucratic journey from Maryland to Virginia.
Competing Visions for Immigration Reform
In the highly competitive Senate race between Democratic Rep. Ruben Gallego and Republican Kari Lake, immigration reform has become a key issue. Gallego supports bipartisan legislation aimed at expanding worker permits for immigrants, while Lake advocates for improving schools to prepare students for the job market.
The Consequences of Inaction
John Graham, chairman and CEO of Sunbelt Holdings, warns that the U.S. lacks the workforce to fill critical jobs in industries like construction and agriculture. He believes that immigrants are not taking jobs from Americans, but rather filling essential roles. Graham is concerned that the proposed ballot measure allowing state and local police to arrest noncitizens who crossed the border unlawfully could have a chilling effect on businesses considering Arizona as a location.
A Lesson from the Past
Graham recalls the negative impact of a 2010 state law that made being in the country illegally a state crime. The law led to racial profiling, a decline in workers, and a business stigma for the state. A study by the Grand Canyon Institute estimates that the proposed 2024 ballot measure could cost $325 million annually if implemented.
As Arizona prepares to elect its next senator and vote on the controversial ballot measure, the state’s economic future hangs in the balance. Will lawmakers find a way to address the worker shortage and reform the immigration system, or will Arizona’s economy suffer the consequences?
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