New Americans in Chicago

A new report from New American Economy shows that immigrants represented 36 percent of Chicago’s entrepreneurs and generated $659 million in business income in 2016. The report, New Americans in Chicago, was produced in partnership with the Chicago Mayor’s Office of New Americans. The report also shows that immigrants also held nearly a quarter of the spending power among the city’s residents, earned nearly $17 billion in household income, and paid $6 billion in taxes in 2016.

In addition to their financial contributions, the report shows the foreign-born population’s role as contributors to the workforce in Chicago. Although foreign-born residents made up 20.7 percent of the city’s overall population in 2016, they represented 24.3 percent of its working-age population, 25.5 percent of its employed labor force, and 26.9 percent of its STEM workers. Immigrants in Chicago are also putting down roots in the US. Nearly half of all immigrants in Chicago were naturalized citizens in 2016.

The brief features profiles on two Chicago-area immigrants: Arnav Dalmia and Nasir Zakaria.

The brief, New Americans in Chicago, finds:

  • Immigrants play an outsize role as entrepreneurs in the city. Despite making up 20.7 percent of the overall population, immigrant represented 36.4 percent of Chicago’s entrepreneurs. They own more than 39,000 businesses in the city that generated $659.2 million in income in 2016. Immigrants were also 67.4 percent more likely to be entrepreneurs than their U.S.-born counterparts.
  • Immigrants households earned $16.9 billion in 2016. They also held $10.9 billion in spending power. This means that foreign-born households held 22.4 percent of all spending power in Chicago, more than their share of the city’s population.
  • Given their income, immigrants contributed significantly to federal, state, and local taxes. Immigrants paid $4.4 billion in federal taxes and $1.6 billion in state and local taxes in 2016.
  • Despite making up just 20.7 percent of the overall population in the city, immigrants played an outsize role in the labor force in 2016. Foreign-born workers represented 24.3 percent of the working-age population, 5 percent of its employed labor force, and 26.9 percent of all workers in STEM fields in Chicago.
  • Immigrants play a critical role in several key industries in the city. Though they are 20.7 percent of the population, foreign-born workers made up 48.0 percent of all workers in the manufacturing industry and 34.9 percent of workers in the accommodation and recreation industry.
  • Nearly half of immigrants and refugees in Chicago—or more than 248,678 individuals—were naturalized citizens in 2016. 4 percent of the non-citizen population were likely eligible to naturalize.

Chicago is one of 44 communities selected for the Gateways for Growth Challenge, a competitive opportunity from New American Economy and Welcoming America where local communities receive tailored research on the contributions of immigrants, direct technical assistance to develop multi-sector plans for welcoming and integrating immigrants, or matching grants.

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New American Economy brings together more than 500 mayors and business leaders who support immigration reforms that will help create jobs for Americans today. More…