America has long attracted some of the world's best and brightest, but not all of them can
get jobs that allow them to fully utilize their college degrees or their skills.
In fact, nearly two million highly skilled immigrants, in other words, those with four-year
college degrees or more, are either stuck in low-skilled employment or can't find work.
This phenomenon is known as brain waste or skill underutilization.
You may know it best by the old story of doctors driving taxicabs.
We estimate that one in four highly skilled immigrants in the United States experience
as brain waste.
There are approximately eight million college educated immigrants in the U.S. labor force,
but nearly two million either couldn't find employment or are working in low-skilled jobs
such as cashiers, construction laborers, and cooks.
Brain waste imposes some significant economic costs on immigrants, their families, and the
U.S. economy.
How much?
Our research shows that highly skilled immigrants working in jobs that require no more than
a high school degree are missing out on more than $39 billion in wages annually.
And as a result, federal, state, and local governments are forgoing a bit more than $10
billion in tax payments.
These unrealized earnings and tax payments affect the U.S. economy at every level by
lowering productivity and consumer demand.
And highly skilled immigrants who cannot fully utilize their skills are less likely to earn
family-sustaining wages and as a result, to achieve financial stability for themselves
and their families.
This brain waste should be of particular concern right now.
Our research shows that the highly skilled make up a rapidly increasing share of the
immigrant population.
In fact, about half of all recently arrived immigrants had a college degree.
That's up from a quarter in 1990.
So as the immigrant workforce becomes ever more educated, it only makes sense to try
to fully leverage their talents.
Brain waste affects some immigrants more than others.
It's particularly acute for immigrants who were educated outside the United States.
Fully 29 percent of those earning their degrees abroad worked in low-skilled jobs or couldn't
find work.
That says compared to 21 percent of immigrants educated in the United States.
So what are some of the barriers that high-skilled immigrants face in getting jobs at their
skill level?
Let me mention a few of the most important ones.
One is the difficulty of getting foreign credentials recognized by U.S. employers and licensing
parties.
Immigrants unfamiliarity with U.S. labor markets and other.
A third is employers negative perceptions of the quality of foreign education and work
experience.
And fourth, limited English skills.
When we tried to isolate the most important contributing factor to brain waste, we found
that limited English proficiency represented the greatest risk for low-skilled employment.
The good news is that many of these barriers can be addressed or at least alleviated through
targeted programs and policies.
Some states, including Michigan and Ohio, are undertaking efforts to remedy brain waste.
For example, by connecting international students and immigrant professionals with potential
employers.
And a growing number of nonprofits and employers are also taking steps.
Everything from helping immigrants connect with professional English classes to mentorship
and network programs that help them redo their resumes and learn what works best in the U.S.
job interview setting.
Finally, one of our most telling findings is that immigrants are not alone in experiencing
brain waste.
Our research shows that 18 percent of U.S. born college graduates, in other words, nearly
seven million people, also cannot find work at their skill level.
What this tells us is that U.S. policies which currently concentrate on human capital development
by getting people into college and on to graduation, need to expand to human capital utilization.
It should be a priority for national and state policymakers to ensure that all workers, regardless
of their origin, are given the opportunity to fully utilize their human capital in ways
that contribute to economic growth and competitiveness.
