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Published on September 15, 2023
Immigrants Drive $255 Billion of Santa Clara County's Economic BoomSource: County of Santa Clara

A recent study, released during National Welcoming Week for new Americans, highlights the significant economic contributions immigrants make in Santa Clara County. The report by the American Immigration Council, in collaboration with the County of Santa Clara Office of Immigrant Relations, delves into the essential roles played by immigrants in the region's labor force, business sector, and consumer spending power.

As Santa Clara County Supervisor Otto Lee expressed, immigrants have historically been critical to the thriving economy not only in the county but across the Bay Area. Fermenting hope and opportunity, Silicon Valley continues to open its doors to immigrants who, in turn, reciprocate with their fair share of contributions to the region's growing prosperity.

The report, titled "New Americans in Santa Clara County," offers some eye-opening insights. For instance, while immigrants represent only about 40% of the county's population, they contribute to an astounding 54% of the gross domestic product generated in the region each year. In 2021 alone, this amounted to $255 billion. In terms of Santa Clara County's labor force, immigrants comprise nearly half of the 1 million employees.

Not merely limited to labor force numbers, immigrants have also consistently proven to be invaluable in filling critical labor force needs. Unbeknownst to many, immigrants in Santa Clara County contributed $5.1 billion to Social Security and $1.8 billion to Medicare in 2021. This illustrates the role immigrant households play in supporting the federal safety net—an aspect that cannot be neglected.

Entrepreneurial prowess is another critical domain where immigrants shine. In 2021, half of the business owners in Santa Clara County were immigrants who generated a whopping $1.5 billion in business income. Immigrants accounted for 67% of the region’s STEM workers, 64% of manufacturing workers, and 56% of professional service workers, thereby addressing crucial labor force needs in key industries.

The findings of this study only mark the beginning of further efforts to accommodate and welcome new families arriving in Santa Clara County. The next step involves conducting a needs assessment of the immigrant population to better understand and streamline best practices for integrating newcomers.

As Susan Ellenberg, President of the Santa Clara County Board of Supervisors, emphasized, the commitment to making the county the best place to raise a child encompasses all families, regardless of their origin or native language. The diverse immigrant population strengthens the county's unity and contributes to its greatness.

County Executive James R. Williams, as the child of immigrants, remains an advocate for immigrant rights and has long celebrated their important place within the fabric of Santa Clara County. The report further bolsters his stance, with Mo Kantner, senior director of policy and research at the American Immigration Council, underscoring the county's rich history of immigration, which shaped the region's culture and economy. Kantner pointed out the stark difference between Santa Clara County's immigrant population, accounting for over 40%, and the national average, which is just over 13%.

With nearly 765,000 immigrants living within its boundaries and nearly 56% of households containing at least one immigrant resident, Santa Clara County illustrates the significant impact immigrants have on the county. The report not only quantifies these contributions, it also shines a light on the diverse skills and talents immigrants bring to the table, helping to build an inclusive, dynamic community.