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 The Wall Street Journal - Reis.com  - August, 2001 



Immigration Spreads
Throughout Nation


ames Johnson was born in the rural south, in the tiny hamlet of Falkland, N.C., and grew up in a society sharply divided between black and white, much as it had been since well before the Civil War. "The only time we saw someone who was not black or white," the University of North Carolina business professor recalls, "was on TV or occasionally during the summer in the fields."

Today Johnson, also a scholar at the Kenan Institute in Chapel Hill University, sees the emergence of a very different North Carolina - a state that is becoming one of the fastest growing immigrant hubs in the country. Drawn by the region's buoyant economy, new immigrants, largely from Central America and Mexico, have poured into the region, drastically changing its long-established racial character and adding to its basic economic vitality. Since the mid-1990s, immigration to North Carolina has risen by 73%, the largest such increase in the nation. Three of the top four regions in the country with the strongest increase in Latino immigration are in the state.

Of course, in relative terms -- compared to California, Texas, Florida, or New York -- the Hispanic population remains modest, barely 5% of the total population, according to the 2000 Census. In comparison, Black Americans account for over one fifth of all state residents. Yet the economic, social and political implications of this immigration, Johnson maintains, are profound, and just in their early stages. Over the past decade, he points out, Hispanics under the age of 18 actually grew more in absolute numbers than African-Americans in North Carolina. In some districts, particularly in the tech-rich Piedmont, communities like Charlotte (now home to over 50,000 Hispanic immigrants), and Raleigh-Durham, Latinos now account for over 30% of all school children. Similar patterns are emerging in many other Southern cities such as Atlanta, Houston and Nashville. "You are seeing a shift in the South, particularly, into a society that is changing more into the kind of thing you see in Los Angeles and other places," observes Johnson, who is best known for his earlier research on black "return" to the South from the Northeast and California.

Fastest Growing Hispanic Cities
Hispanic Population and Growth (1990-2000)

Source: Census Bureau
Analysis by: William Frey

The new immigration patterns have forced some demographers, such as the University of Michigan's William Frey, to reassess their 1990s analysis of America's changing racial profile. Formerly Frey saw America as divided between immigrant "magnets", such as Los Angeles and New York, and areas like Las Vegas and North Carolina, that were primarily luring domestic migrants.

Although the "magnets" remain the dominant immigrant centers, Frey suggests a more diverse profile is now emerging in some new areas outside the traditional coastal "gateway" centers. "New immigration to regions like the South, as well as the Intermountain West," he says, "reflects the essential strength of these region's economies." Along with North Carolina, the fastest growing immigrant states include Nevada, Virginia, Arizona, Utah and Oregon. This "browning" of more and more of metropolitan America seems inevitable and something that, along with other indicators, suggests where economic activity is shifting. Between now and 2050, according to the U.S. Census projections, the nationwide Hispanic population is expected to rise by over 200% while the Asian population is slated to grow by 400%. This compares to a mere 50% increase for the overall population, and a mere 29% for whites.

Fastest Growing Asian Cities
Hispanic Population and Growth (1990-2000)

Source: Census Bureau
Analysis by: William Frey

Investors looking for the mid or long term should recognize that this population is generally younger, more economically active and likely to remain in the workforce far longer than either white or black populations. On a regional basis, it is already clear that the fastest growth in immigrant groups, both Latino and Asian, occurred in those cities that did best in the 1990s -- boomtowns like Atlanta, Orlando. Fla., Reno, Nev., Salt Lake City, and Charlotte. In the process, at least two once predominately white cities, Phoenix and Las Vegas, are now on the verge of becoming "minority majority" melting pots. Economics, Frey and sociologist Johnson agree, are driving these changes. Without the new immigrants, and their children, the labor market in these states would be severely constrained enough to stall growth. Latinos now dominate the blue-collar workforce in such industries as food processing and construction, as companies recruit Spanish-speaking workers from both traditional immigrant hubs in South Texas and Southern California, often using Spanish language media. At the same time, Frey explains, the Latino immigrants come to perform service work for areas where there is a burgeoning white middle class population. This allows regions to provide the kind of amenities many upwardly mobile workers expect. "A lot of this migration is being driven by the migration of middle class whites," he says. "They have high levels of service needs that Latinos can fill."

Although they tend to be moving to similar high-growth areas, Asian immigrants represent somewhat different phenomena. Many Asians, Frey notes, are very well educated and tend to cluster in areas that have experienced rapid rates of high-tech growth. Some of the highest numbers of Asian-Indian immigration are in places such as Austin, the Silicon Valley suburb of Sunnyvale, Calif., and the north Dallas suburb of Plano, Texas. The North Carolina hub of Charlotte, with its strong base of professional and financial service base, has also been attractive to these generally well-educated Indian immigrants. Ultimately, these changes will have a profound impact on lifestyles, commerce and politics in these emerging regions. On the negative side, some California-style multi-racial ethnic conflict could spread to parts of the country, notably the South, where it has not existed in the past. "You have some tensions with blacks both in rural counties, where Latinos work in the factories, and in the inner cities," suggests Professor Johnson, who formerly taught at UCLA before moving to the University of North Carolina.

This could worsen in the near term. The national economic slow down, such as occurred in California in the early 1990s, could lead both blacks and working class whites to blame job losses on "foreigners." It is also possible, says Frey, that the immigration into the Southern and Inter-mountain west cities could prove transitory, as hard times force migrants back to more traditional ethnic clusters along the coast. But this is not likely, given the long-term health of these economies. Among business leaders, there are many who, like Johnson, see the new immigration -- both Asian and Latino -- as helping transform North Carolina cities like Charlotte into more competitive global cities. He cites the early phases of Latino and Asian business development as adding a new and important economic stimulus to the state's urban regions, which have generally lagged behind the suburban areas. But perhaps more important, he believes immigration will also accelerate the integration of the traditionally insular South into the wider global economy. Much like Southern California, which underwent a similar process in the 1970s and 1980s, Southern cities, and some in the West as well, are now poised to enter a new, and more sophisticated, level of economic and cultural evolution.

"We are entering a critical transition point in our development," Johnson maintains. "This is a competitive issue for us in the long-term. People used to talk about getting on trade missions to Mexico or Asia, but now you can access those markets right here." What will be critical for Southern and other emerging immigrant areas, Johnson suggests, is adapting the educational and political systems to the newcomers. Programs such as English as a Second Language, the encouragement of ethnic entrepreneurship and greater awareness of cultural diversity are part of the necessary regional response to the change in demographics. With its racial history, the South, in particular, needs to make the newcomers feel comfortable about their choice to move there. "It's not about political correctness for us to welcome these people," Johnson says. "It's enlightened self interest."


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