A project of the Partnership for a New American Economy
Maryland’s reputation as a destination for immigrants began in 1632 when Caecilius Calvert, the 2nd Lord Baltimore, was awarded a charter from King James I to create the Province of Maryland. Calvert promoted tolerance for all Christian religions in the colony, even though the Maryland colony was officially Catholic, making it more appealing to many religious minorities seeking to come to America. Maryland became known as a haven for Catholics in the New World, particularly important at a time of religious persecution in England. Calvert governed for 42 years, during which more than 30,000 people immigrated to Maryland.
Recently, Maryland’s foreign-born population has grown significantly from 2000 to 2013, the number of immigrants in Maryland grew by almost 60 percent, much higher than the national average. This growth has expanded the state’s already large immigrant population; the 2013 American Community Survey found that over 800,000 people in the state were foreign-born, making up almost 14 percent of Maryland’s total population.
Size of foreign-born population (2013)
Percent of state’s population that is immigrant
Growth in foreign-born population 2000-2013
Top countries of origin
In the coming years, science, technology, engineering, and math (STEM) fields are projected to be a key part of US economic growth, adding jobs 73 percent faster than the rest of the economy. For Maryland, fixing the US immigration system so that it is easier for students trained in America to remain in the country after graduation will be critical. In 2013, 30 percent of the students earning Master’s or PhD degrees in STEM from the state’s research-intensive universities were foreign-born. Recently, non-citizens have earned more than half of the engineering PhDs granted in the state. By 2020, Maryland will need to fill 211,190 new STEM jobs and immigrants will play a key role in occupying these positions and continuing to promote economic growth.
Share of STEM graduates at state's most research-intensive schools who are foreign-born (2013)
Share of Engineering PhDs who were temporary or permanent residents (2006-2010)
Immigration Reform = Economic Growth in Maryland
Reforming our immigration system will generate millions of dollars and thousands of jobs across Maryland. In the D.C., Maryland and Virginia metropolitan area, 2007 and 2008 H-1B visa denials cost U.S.-born tech workers as many as 30,222 additional jobs and as much as $519,417,000 in missed wages by 2010. In the Baltimore area alone visa denials cost U.S. born tech workers 1,571 additional jobs and as much as $20,113,000 in lost wages. According to Regional Economic Models, Inc. (REMI), undocumented immigrants who enroll in a legal path to citizenship will generate more than 10,000 jobs and more than $792 million for the state by 2020. Expanding the number of both high-skilled (H-1B) visas will also have positive economic effects. The new H-1B visas awarded to Maryland between 2010 and 2013 will translate into 27,622 new jobs for U.S.-born workers in the state by 2020. REMI estimates that expansion of the H-1B program would result in more than 4,400 jobs and add more than $435 million to Gross State Product by 2014.
In Maryland, creating a path to citizenship and expanding the high-skilled visa program would add a total of more than $604 million to Gross State Product in 2014.
Hispanics play an important role in all areas in Maryland, but a report recently published by the Partnership for a New American Economy shows how significant their economic contribution is. Statewide, Hispanics account for $8.2 billion of the spending power. They also pay $2.9 billion in federal, state, and local taxes; $1.4 billion of that amount goes to Social Security and $320 million goes to the Medicare trust fund.
Immigrants are helping to grow housing wealth in some key Maryland counties, as well. Between 2000 and 2010, more than 60,000 immigrants arrived in Montgomery County, the state's most populous county. By moving into neighborhoods formerly in decline, these immigrants played a role adding to the housing wealth of the neighborhood’s residents. That influx of immigrants added $6,940 to the value of the average home in the county, or nearly $2.5 billion to housing wealth there overall.
Immigrants have been integral in helping Maryland grow economically in recent years, especially as the state has struggled, along with the rest of the country, to drive new business and create American jobs. In Maryland, foreign-born residents own more than 21 percent of the state’s businesses, despite making up less than 14 percent of the population. Maryland now boasts the seventh highest rate of immigrant business ownership in the country, not far behind immigrant-heavy locales like California, Florida, and New York.
Share of business owners in Maryland who are immigrants
Annual business income generated by immigrant-owned businesses
In part because of some of the challenges students face remaining in the state after graduation, Maryland is currently short of the workers it needs in STEM areas, fields that help the economy remain innovative and competitive. According to the nonpartisan advocacy group Change the Equation, from 2009 to 2011 some 3.4 STEM jobs were posted online in Maryland for every one unemployed STEM worker in the state.
Ratio of STEM jobs to unemployed STEM workers
Share of foreign-born advanced degree workers in STEM fields (2000)
Share of foreign-born advanced degree workers in STEM fields (2010)
Increase in share of foreign-born STEM workers
Number of physicians per 100,000 residents
Share of physicians who graduated from foreign medical schools (2012)
Share of active physicians who are over age 60
Maryland H-2B Visas (FY 2013)
Immigrants are helping to grow the US economy everywhere, not just in the places—like our biggest cities—that we expect. They are helping to fill labor shortages on America’s farms, starting businesses that employ US workers, and developing the cutting-edge products that make America the world’s preeminent innovation hub.
Click on a state to learn more about the contributions immigrants are making to the local economy.