Earlier this month, ThinkProgress reported that immigration from Mexico into the United States reached a “net zero” level. Yet a new report by the Pew Hispanic Center reveals that more Mexicans appear to be leaving the United States for Mexico than are leaving Mexico for the U.S.A for the first time since the Great Depression.

The report notes several factors that are likely behind the change including tighter borders, including a weakened U.S. economy and a rise in deportations. But most interesting are two factors that may indicate that the trend may be lasting. First, the birthrate in Mexico has dropped. Between 1960 and 2009, the average Mexican woman went from having nine children to just two. As such the Mexican population has dropped. Second, the Mexican economy has improved. With a relatively strong economy, there is less incentive for citizens to emigrate.

For years, the U.S. immigration debate has been built around an assumption that there are large numbers of Mexican nationals trying to move into the U.S. — legally and illegally. This report suggests that this assumption may need to be re-evaluated. As Princeton Professor Douglas Massey, who co-directs the Mexican Migration Project, told the Washington Post, “I think the massive boom in Mexican immigration is over and I don’t think it will ever return to the numbers we saw in the 1990s and 2000s.”

Alabama’s economy is suffering because of HB 56, the state’s draconian immigration law, as workers flee out of fear. State Sen. Scott Beason (R), who sponsored the anti-immigrant bill in the Alabama legislature, once called it a “jobs bill,” but the state’s immigration law is leaving entire industries without enough workers instead.

And the extreme law, which legislators are now reconsidering, could seriously damage the state’s reputation as well after police arrested a German Mercedes-Benz executive last week under the immigration law. Mercedes opened its first American manufacturing plant in Vance, Alabama in 1993, spurring a trend of foreign car makers and suppliers opening factories in the state. They may be rethinking that decision, however, after one of their German executives was arrested for simply not having his passport with him:

Tuscaloosa Police Chief Steven Anderson told The Associated Press an officer stopped a rental vehicle for not having a tag Wednesday night and asked the driver for his license. The man only had a German identification card, so he was arrested and taken to police headquarters, Anderson said.

The 46-year-old executive was charged with violating the immigration law for not having proper identification, but he was released after an associate retrieved his passport, visa and German driver’s license from the hotel where he was staying, Anderson said.

The length of his detainment and the status of his court case weren’t immediately known.

Bentley…called the state’s homeland security director, Spencer Collier, after hearing of the arrest to get details about what had happened, Collier said in an interview.

“Initially I didn’t have them, so I called Chief Anderson to find out what happened,” Collier said. “It sounds like the officer followed the statute correctly.”

Before Gov. Robert Bentley (R) signed HB 56, drivers who did not have a license were given a ticket and court summons, Collier said. “If it were not for the immigration law, a person without a license in their possession wouldn’t be arrested like this,” he told the AP.

In October, the New York Times speculated in an editorial that despite best efforts to recruit foreign automakers to Alabama, the state was now “infamous as a regional capital of xenophobia.” And if the immigration law scared away a manufacturer like Mercedes, which employs about 2,800 Alabamians, or Hyundai, which announced an expansion at its Montgomery, Alabama plant in May, would only compound the state’s economic woes. The unfortunate arrest of a visiting Mercedes executive only underscores the damage Alabama’s harmful anti-immigrant law will continue to do to the state’s economy — and its reputation.