AN INTERESTING DILEMMA FOR AZ BUSINESSES

Arizona businesses don't want to pay higher wages but the new state immigration bill may force them to. Will they try to fight the bill in court as they did with a previous law that sought to restrict illegal workers?

Illegal immigrants plan to leave over Ariz. law

By AMANDA LEE MYERS
Associated Press Writer
Apr 28, 8:44 PM EDT

A study of immigrants in Arizona published in 2008 found that non-citizens, mostly in the country illegally, held an estimated 280,000 full-time jobs. The study by researcher Judith Gans at the University of Arizona examined 2004 data, finding that they contributed about 8 percent of the state's economic output, or $29 billion.

Losing hundreds of thousands of unskilled laborers wouldn't hurt the state's economy in the short term, but it could limit the economy's ability to grow once it recovers, says Marshall Vest, director of the Economic and Business Research Center at the University of Arizona's Eller College of Management.

Legal workers who are willing to take any available job now will become more choosy if the unemployment rate falls back to low levels seen before the recession hit.

"That's really the question, as to whether the existing population is willing to work those (low-level) jobs," Vest says. "I think economics provides the answer. If job openings have no applicants, then businesses need to address that by raising the offered wage."