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Immigrants and the economy in:

Tennessee

Today, Tennessee is home to more than 330,000 immigrants. They are currently contributing to the state’s economy in a myriad of ways, including as entrepreneurs, tax payers, and consumers. Immigrant contributions are especially high in STEM fields; despite making up only 5 percent of Tennessee’s population, immigrants represented 12.1 percent of all STEM working in the state in 2016.

  • Immigrant Residents

    331,868
  • Immigrant Share of Population

    5.0%
  • Immigrant Taxes Paid

    $2.1B
  • Immigrant Spending Power

    $6.9B
  • Immigrant Entrepreneurs

    22,182
  • Employees at Immigrant-Owned Firms

    57,085

Demographics

In the United States, immigrants are more likely to be working-age than their U.S.-born counterparts. This allows them to contribute to the U.S. economy and to entitlement programs as they work and pay taxes. This is equally true in Tennessee, where immigrants are far more likely to be of working age than the U.S.-born population.

Age Group Foreign-Born Population Share Native-Born Population Share
0-15 8.0% 20.7%
16-64 83.7% 63.2%
65+ 8.2% 16.1%

Entrepreneurship

In 2010, roughly one in 10 American workers with jobs at private firms were employed at immigrant-founded companies. Such businesses also generated more than $775 billion in annual business revenue that year. In Tennessee, like the country as a whole, immigrants are currently punching above their weight class as entrepreneurs, with more than 22,000 immigrants owning their own business in the state.

People employed by immigrant-owned firms 57,085
Immigrant entrepreneurs 22,182
Business income of immigrant-owned firms $472.5M
Fortune 500 companies in Tennessee founded by immigrants or their children 18.2%

Taxes & Spending Power

Nationally, immigrants earned $1.4 trillion in 2016 and contributed more than $117 billion in state and local taxes, as well as almost $262 billion in federal taxes. This left them with more than $1.0 billion in spending power. Immigrants in Tennessee play an important role contributing to the state’s economy both as consumers and taxpayers.

Immigrant Household Income $9.0B
Taxes Paid $2.1B
State & Local Taxes $587.3M
Federal Taxes $1.5B
Total Spending Power $6.9B

Workforce

Nationally, immigrants are 9.2 percent more likely to hold an advanced degree than the native-born. They are also more likely to have less than a high school education. Uniquely, this allows them to fill critical shortages at both ends of the skill spectrum, from high-tech fields to agriculture, hospitality, and service industries. This holds true in Tennessee, where immigrants play a particularly large role as painters, packers, and software developers.

Educational Attainment by Nativity, Age 25+
Workforce Education Foreign-Born Population Native-Born Population
Less Than High School 27.1% 12.2%
High School & Some College 39.9% 62.1%
Bachelor's Degree 18.0% 16.6%
Graduate Degree 15.0% 9.2%
Top Industries with Highest Share of Foreign-Born Workers
Landscaping services 19.3%
Private households 19.0%
Construction 16.2%
Crop production 16.1%
Furniture and related products 15.4%
Top Occupations with Highest Share of Foreign-Born Workers
Painters and paperhangers 36.8%
Software developers, applications and systems software 26.0%
Carpenters 23.8%
Physicians and surgeons 21.6%
Maids and housekeeping cleaners 21.5%

Science, Technology, Engineering, and Math

Between 2014 and 2024, science, technology, engineering, and math—or “STEM”—fields are projected to play a key role in U.S. economic growth, adding almost 800,000 new jobs and growing 37.0 percent faster than the U.S. economy as a whole. Immigrants are already playing a huge part ensuring that Tennessee remains a leading innovator in industries like mechical engineering and precision manufacturing.

STEM workers who are immigrants 12.1%
STEM Master’s students who are foreign nationals 15.0%
STEM PhD students who are foreign nationals 30.4%

Healthcare

In the coming years, the American healthcare industry is projected to see rapid growth—adding more new positions from 2014 to 2024 than any other industry in our economy. In Tennessee, a state where nearly one out of every 7 people is currently elderly, finding enough healthcare workers remains a challenge—and one that will likely worsen in the future.

Open healthcare jobs to unemployed healthcare workers 11:1
Doctors who were educated abroad 18.3%
Psychiatrists who were educated abroad 29.3%
Nurses who are foreign-born 4.5%
Health aides who are foreign-born 4.3%

Housing

Immigrant families have long played an important role helping to build housing wealth in the United States. In recent decades, the more than 40 million immigrants collectively in the country increased U.S. housing wealth by $3.7 trillion. Much of this was possible because immigrants moved into neighborhoods once in decline, helping to revitalize communities and make them more attractive to U.S.-born residents. In Tennessee, immigrants are actively strengthening the state’s housing market.

Immigrant homeowners 61,540
Share of recent homebuyers who were foreign-born 5.2%
Housing wealth held by immigrant households $15.0B
Amount paid by immigrant-led households in rent $682.0M

International Students

International students in the United States contributed more than $36.9 billion to the U.S. economy in the 2016-2017 school year and supported more than 450,000 jobs through their tuition payments and day-to-day spending. Research has also found that increases in the number of international students at American universities boost innovation and patent creation. International students represent a small portion of all students in Tennessee, but they make a big impact.

Students at Tennessee colleges and universities who are international 3.0%
Economic contribution of international students $313.4M
Jobs supported by international students 4,219

Voting Power

In 2016, Tennessee was home to almost 113,000 foreign-born residents who were eligible to vote, including an estimated 53,000 foreign-born residents who had formally registered. Those numbers are unlikely to sway a presidential election in this relatively safe Republican state, where Republican Donald Trump won by roughly 652,000 votes in 2016. Still, it can make a difference in closer statewide contests and primaries.

Immigrants eligible to vote 113,644
Immigrants registered to vote 53,254
Immigrants eligible to vote in 2020 126,006
2016 presidential election margin of victory 652,230

Undocumented Immigrants

The United States is currently home to an estimated 11.0 million undocumented immigrants, the vast majority of whom have lived in the country for more than five years. The presence of so many undocumented immigrants for such a long time presents many legal and political challenges. But while politicians continue to debate what to do about illegal immigration without any resolution, millions of undocumented immigrants are actively working across the country, and collectively, these immigrants have a large impact on the U.S. economy. This is true in Tennessee, where undocumented immigrants contribute hundreds of millions of dollars in taxes each year.

Undocumented immigrants 132,033
Share of undocumented immigrants, working age 88.1%
Undocumented entrepreneurs 7,590
Undocumented Household Income $2.3B
Taxes Paid $235.6M
State & Local Taxes $87.3M
Federal Taxes $148.3M
Total Spending Power $2.1B

The DACA-Eligible Population

Our analysis of the 1.3 million DACA-eligible individuals nationwide found that DACA-eligible people were contribution billions of dollars to the U.S. economy. But DACA, of course, gains more resonance when we look beyond the national picture. Every state in the country is currently home to hundreds—or in many cases, thousands—of DACA-eligible people. Clawing back the protections afforded to this group upsets community networks and schools, and can hurt local employers and businesses dependent upon Dreamers to serve as workers and customers.

Number of DACA Eligible Residents 13,290
Share of DACA Eligible Population in Labor Force that is Employed 89.7%
DACA-Eligible Household Income $167.1M
State & Local Taxes $12.9M
Federal Taxes $11.9M
Total Spending Power $142.3M

The Economic Impact of Refugees

Despite leaving extreme and dangerous situations in their home countries, refugees are often able to rebound and prosper as they become more integrated into American society. Nationwide, we find that refugees hold billions of dollars in spending power and pay more than $20 billion in tax contributions to federal, state, and local governments each year. At the state level, they contribute millions of added dollars to local economies, making them an important driver of growth and prosperity for communities around the country.

Key Stats
Number of Likely Refugees 26,634
State's Share of all Likely Refugees 1.2%
Share of Overall State Population, Refugee 0.4%
Taxes & Spending Power
Refugee Household Income $649.9M
Taxes Paid $152.3M
State & Local Taxes $43.4M
Federal Taxes $108.9M
Refugee Spending Power $497.5M

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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…

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