(Note: 1990 census data are used here-in as the results of the 1995 census
were not available)
     At the time of the 1990 census the total employed labor force in the
Commonwealth was 25,965 within a total population of 43,345 which  includes
nonresident workers but omits the average daily tourist population. At the
time of the census the total indigenous population was 17,181 persons, or
39.6 percent of the CNMI's total resident and nonresident population.
     The indigenous labor force (both those employed and unemployed),
between the ages of 16 and 65 years numbered 7,476 of which it was
estimated that 4,777 (63.8 percent) were employed. The remaining 2,699
(36.2 percent) consisted of students, housewives and others not desirous of
employment. The unemployment rate for the Commonwealth in 1990 was 2.3
percent. The lowest of any area under the American Flag.
     At the time of the census there were 21,188 nonresident workers which
made up 81.6 percent of the labor force. Considering the annual rate of
growth of the indigenous population as measured between 1973 and 1990 and
assuming that this rate of growth continues, there will not be a sufficient
local population  within the indigenous labor force to staff the available
jobs in the Commonwealth that existed in 1990, namely, 25,965 jobs, until
well into the mid 21st century.
     While the current economic slowdown has resulted in the reduction of
some nonresident workers particularly in the construction industry from the
recorded high point of two years ago, the above analysis does provide an
important indicator of the Commonwealth's desperate need for outside labor
to supplement the supply of available local indigenous labor.  Depending
upon the annual rate of population growth within the indigenous population,
a growth rate of 1.85 percent will result in  92,783 indigenous persons of
all ages in the year 2082 with the 1990 employment level of 25,965 jobs in
the CNMI finally reached at that time. A three percent growth rate, which
is extremely unlikely, will result in reaching the 1990 employment level by
the year 2047.
     Today, the nonresident worker is a valuable and indispensable element
in the Commonwealth's "new" economy and it is indeed fortunate that the
CNMI is in proximity to the Philippines with its surplus labor pool which
can be tapped to augment the Northern Marianas limited indigenous supply of
workers. To cite only one example for this need,  it is a generally
accepted industry "rule of thumb" that a full service resort hotel requires
from 1.0 to 1.5 employees per room in the facility. Considering the
existing 3,000 hotel rooms in the area some 4,500 hotel employees are
required to staff this industry alone. This does not consider the employees
necessary to operate the remaining economic sectors of the islands. Without
foreign workers the Commonwealth's economy would revert to the 1975 - '80
level.
     As late as 1980 the Commonwealth had no economy to speak of, indeed, a
very prominent businessman, Joe Screen,  remarked that he thought the CNMI
"had a black hand over it." It appeared in those days that the Northern
Marianas, like the economies elsewhere in Micronesia which were previously
part of the Trust Territory would forever remain an economically stagnate
entity.  Aside from the obvious constraints of no natural mineral
resources, poor agricultural soils, a small and fragmented domestic market
(three inhabited islands) located within an area subjected to the
uncertainty of devastating typhoons, the islands of the Commonwealth had
one other unfortunate disadvantage which, like the other constraints,
remains to this day, which is the handicap of a small indigenous population
and thus a limited human resource base. This single fact, unless it could
somehow be overcome, would forever "cap" development and keep the islands
at the 1980 level of development. Then, in the mid eighties, two
fortuitous events occurred that had the potential to change the economy.
One event was local, the other international:
 - The CNMI abandoned the formerly restrictive Congress Of Micronesia laws
governing foreign investment and opened the economy to all investors;
 -The United States Government devalued the Dollar in 1986 as related to
the yen which  had the effect of providing the Japanese with a half price
sale on  real estate and other assets. Japanese investment flooded the
CNMI.
     These two events presented a tremendous opportunity - a once in a
lifetime opportunity to finally,  after decades of a low standard of living
and limited business opportunities to attempt to strive for the achievement
of limited economic self sufficiency. However, the limitations placed on
the area  by a small local population still had to be overcome. This was
solved by the importation of alien workers without which no measurable
development could occur. Applications for nonresident work permits soared
from 2,866 in 1980 to 22,745 by 1990. Today, with the exception of the
slowdown in construction, it is impossible to reduce the reliance on alien
workers without doing irreparable harm to the local economy and to the
investment reputation and credibility of the Northern Marianas and to some
extent that of the United States among many foreign investors from Asia who
established themselves in the Commonwealth largely on the basis of the
area's affiliation with the United States and the confidence and trust that
was inspired by that association.
     One might legitimately ask: why not employ U. S. citizens from the
mainland and elsewhere to staff the economy? The fact is that some do come
to the islands - but a great many do not remain very long. Many people from
large metropolitan areas on the U. S. mainland and elsewhere who move to
the islands for employment reasons find adjustment difficult and do not
remain long after their "initial" enthusiasm wears off. This is not meant
to be critical of such people or the islands, it is simply a fact. Usually
disenchantment of one spouse or the other is likely to result from one or
more of the following: high cost of living compared with the United States
particularly for food, rent and utilities; perceived limited medical
facilities or educational opportunities; inability to adapt to a different
environment; low wages and salaries compared with the mainland or limited
employment opportunities for a spouse; the expense of moving household
effects vast distances and the cost of re-establishing one's household;
limited opportunities for professional growth; hot and humid climate;
separation from family members on the mainland  and the expense of
returning for frequent visits; a service oriented economy that limits
opportunities for some professions; limited cultural entertainment; no
public transport; water shortages in some areas or special needs that
cannot be met in the islands. The above are some of the reasons people
leave the islands after a relatively short period and return to the U. S.
mainland with the result that the U. S. mainland does not appear to be the
source or solution for the island's work force that one might otherwise
assume. It is primarily the Philippines to which island employers have
usually  turned in the past.
     The recruitment and maintenance of a nonresident worker for their
first year of employment can cost a Commonwealth employer as much as
$5,500.  per person and this does not include their salary. The presence of
such a large alien population is the subject of intense controversy in the
islands. Those opposed to their presence cite the pressure on
infrastructure facilities, hospital, water, recreational areas, etc. Those
in favor cite their contribution, indeed, necessity  for a growing economy.
With regard to the latter the business community criticizes government
efforts at regulation and cites “red tape” as an onerous, expensive and
time consuming burden. The United States government is critical of the use
by some businesses producing products for export to the United States in
competition with American workers.
     Some members of the United States Congress have suggested that local
control of immigration in the Commonwealth be withdrawn and the
administration of immigration be placed under the laws of the United States
with U. S. immigration authorities responsible for this element of
government. Several frustrated Commonwealth businessmen have indicated that
they will turn to the Caribbean island of Puerto Rico, an area of high
unemployment,  for their labor force. Puerto Rico workers are United States
citizens and can enter freely into the Commonwealth for any purpose.
Employers would then not be obligated to provide employee housing, food,
medical care, transportation, etc. as now required when alien workers are
employed. This action, should it ever occur, would eventually present
serious consequences with respect to local control of the government since
these workers would come with all the rights and privileges of U. S.
citizenship including the right to vote in local elections.
Indigenous Labor Force Needs 1/2 Century  Of Growth To Equal Number Of
Employed Persons In The Commonwealth In 1990
     Depending upon the rate of increase selected for projecting population
growth, it is interesting to note that the year 2047 is as distant from the
present as the 1943 Battle of Midway is in the past. The year 2082 lacks
only eight years from being a full century from  the 1990 census date and
is as close to us today as the year 1908 is a quondam period.  Both
distant times and  long  ago - 1908 was within the German period and the
population was approximately 1,600. The year 1943 was within the Japanese
period when the population consisted of approximately 4,150 indigenous and
19,550 Japanese and other nationalities.
     The Commonwealth’s Need To Control Immigration
    The basic question to be posed is: Must the CNMI be penalized with a
minuscule economy simply because it has a small population?
     Frequently the CNMI is compared with Guam and the question posed: If
Guam can survive without control of its immigration, why can’t the Northern
Marianas? Until recently Guam has had  a large military presence with the
dependents of service personnel available in the labor force. Guam is a
single, contiguous island economy. The Commonwealth's three populated
islands requires a tremendous duplication of services and thus a
duplication of personnel, for example, three power plant operations, three
school facilities, etc. In reply to those who believed the size of the
Commonwealth government should be reduced, it must be remembered that the
executive branch administers laws passed, not only by the CNMI Legislature,
but also those of the United States. American environmental protection;
occupational health and safety; historic preservation and a host of others
that were made applicable to the islands, whether they were appropriate or
not, requires staff to implement, monitor, administer or regulate. That's
what governments do. One way to reduce the size of Government  would be to
repeal some of the laws.
     Presently, two industries dominate the economy of the Northern
Marianas - tourism and garment manufacturing. Tourism is an extremely
fragile industry and many forces, both internal and external, can affect
its success. Typhoons can be a disruptive force, as can droughts,
pollution, crime, an area’s price structure, competition from other areas,
fuel prices, the dollar yen ratio and a myriad of other factors. No economy
should be dependent on a single industry - especially tourism. Therefore,
every effort must be made to diversify the island’s economic base.
Manufacturing, fishing, agriculture, etc., accomplishes this goal.  In most
cases manufacturing, and to some extent, fishing and agriculture will
require nonresident workers. Manufacturing will also require the
importation of raw materials. But always the matter of an adequate labor
force arises.
     Finally, loss of local control of  immigration may ultimately mean
loss of local control of the government and in particular - the legislative
branch . One must legitimately pose the question: Why should an indigenous
population - one which has endured for centuries in relative isolation;
coped with the devastation of typhoons; been destroyed by war; survived the
colonial administration of the Spanish, Germans, Japanese, the United
Nations and  the Trust Territory Government not desire to retain control of
its government?  One’s cultural heritage strengthens one against such
forces and it is only natural to desire to protect it.
Possible Impact Of The Application Of U. S. Immigration Laws In The
Commonwealth  In 1981
     If U. S. Immigration laws had been applied in the Commonwealth in 1981
it is very possible that there would be no need for nonresident workers in
the Northern Marianas. Had they been applied it is also quite likely that
by 1993 the indigenous population would comprise only nine percent of the
total population and would continue to decline as a percent of the total
in future years.
     One reason the Commonwealth was permitted control of its immigration
was to avoid the possibility of being overwhelmed as a result of United
States immigration quotas as applied to Asian countries. It was feared that
immigrants entering the United States would select the new Commonwealth as
a port of entry to the United States and very possibly a place of residence
because of the island’s proximity to their home country.
     Since 1981, three and one half million people from Asia alone have
immigrated to the United States according to the Visa Section of the U. S.
Department of State.
If only  5 percent, or 175,000 people, settled in the Commonwealth - THERE
WOULD BE STANDING ROOM ONLY. The total population, including the
indigenous  would be 193,300.
     Such growth would have resulted in a 1993 increase in population
density from 468 people per square mile on the islands of Saipan, Tinian
and Rota to 1,635 persons per square mile. An increase equal to about nine
and one half times the CNMI’s 1993 estimated  indigenous population,
(18,300).
     Considering only immigration to the United States from Asia for the
period 1981 thru ‘93, the ethnic composition of the Commonwealth would have
changed radically if you except the premise that five percent of the total
would stop off and remain in the islands. Using State Department ratios to
estimate the ethnic mix, there could have been about: 37,200 Filipinos;
22,900 Chinese; 18,200 Koreans; 18,300 from India; 17,900 Vietnamese; 7,200
from Hong Kong; 3,600 Japanese and 49,700 from other Asian countries or a
total of 175,000 people as opposed to only 18,300 indigenous people.
      It doesn’t take a political genius to figure out that once American
citizenship was obtained by this group the indigenous people would lose
control of the local government and the society would be far from being
homogeneous. You would have in effect, a miniature continent of Asia
squeezed on to three small islands with a combined total land area of 118.2
square miles.
      At one time United States immigration laws permitted the entry of up
to 20,000 aliens each year from every country in the world maintaining a
diplomatic relationship with the U. S. when other established criteria was
met. A continental land mass as large as the United States is capable of
absorbing such large numbers of immigrant aliens. This is certainly not the
case of a small island area such as the Northern Marianas   In terms of
square miles the combined dry land area of the 50 states is almost 30,000
times as large as that of Saipan, Tinian and Rota combined.

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