Immigrants and Minorities Receiving the
Brunt Impact of the Economic Recession
Brunt Impact of the Economic Recession
According to a new study, the unemployment rate for foreign-born Latinos increased from the fourth
quarter of 2007 to the fourth quarter of 2008.
quarter of 2007 to the fourth quarter of 2008.
By Eduardo Barraza
Phoenix, Arizona. February 17, 2009 - A new study reveals that the present economic recession in the
United States is having a severe effect on Latino immigrants who are looking for work. The analysis,
published by the Pew Hispanic Center, shows that the unemployment rate for foreign-born Hispanics
increased from 5.1% to 8.0%, or by 2.9 percentage points.
The timeframe of this data covers the fourth quarter of 2007 to the fourth quarter of 2008. In
comparison, and during this same time period, the unemployment rate for all persons in the labor market
increased from 4.6% to 6.6%, or by 2.0 percentage points.
According to this analysis, the share of the working-age population (16 and older) among immigrant
Latinos that is employed fell by 2.8 percentage points, from 67.5% in the fourth quarter of 2007 to
64.7% in the fourth quarter of 2008. Among all persons of working age, the employment rate decreased
by 1.6 percentage points, from 63.2% to 61.6%, in the first year of the recession.
But not only are Latino immigrants receiving the brunt impact of the recession. The report indicates
blacks and native-born Hispanics in the labor market are experiencing a strong negative effect.
Followed by Native-born Hispanics, Blacks are currently the only major racial and ethnic group whose
unemployment rate is in double digits, 11.5% in the fourth quarter of 2008, while Latino U.S. citizens had
the second highest rate of unemployment (9.5%) in the same time period. Changes in the employment
rate as well as other indicators of labor market activity during the recession have been less severe for
them than for immigrant Hispanics.
According to the National Bureau of Economic Research, the economy in the United States has been in
recession since December 2007. However, in previous reports published in 2008, the Pew Hispanic
Center presented data captured during the early phases of the recession. One of the studies, which
focused on the construction industry’s slowdown, showed that employment conditions for Latinos had
deteriorated during 2007, even before the economic recession was acknowledged.
Since the report was based on census data, immigration status was not established to indicate if
workers are in the country documented or undocumented. Immigration status is not recorded in the
source data. According to estimates by the Pew Hispanic Center, unauthorized migrants account for
about 5% of the U.S. labor force, and about one-third of the foreign-born labor force.
In industries such as construction, workers without work permits are overrepresented, accounting for
12% of employment, according to a 2006 study by Jeffrey S. Passel, Senior Research Associate with the
Pew Hispanic Center. Most unauthorized migrants are from Latin American countries, with those from
Mexico accounting for about 55% of the total, according to this report.
In the current report, authored by Rakesh Kochhar, Pew’s Associate Director for Research, the extent to
which persons ages 16 and older participate in the labor force, either working or seeking work, is also
influenced by economic conditions. People are drawn into the labor market during expansions, and they
withdraw during recessions.
REPORT: Unemployment Rises Sharply Among Latino Immigrants
United States is having a severe effect on Latino immigrants who are looking for work. The analysis,
published by the Pew Hispanic Center, shows that the unemployment rate for foreign-born Hispanics
increased from 5.1% to 8.0%, or by 2.9 percentage points.
The timeframe of this data covers the fourth quarter of 2007 to the fourth quarter of 2008. In
comparison, and during this same time period, the unemployment rate for all persons in the labor market
increased from 4.6% to 6.6%, or by 2.0 percentage points.
According to this analysis, the share of the working-age population (16 and older) among immigrant
Latinos that is employed fell by 2.8 percentage points, from 67.5% in the fourth quarter of 2007 to
64.7% in the fourth quarter of 2008. Among all persons of working age, the employment rate decreased
by 1.6 percentage points, from 63.2% to 61.6%, in the first year of the recession.
But not only are Latino immigrants receiving the brunt impact of the recession. The report indicates
blacks and native-born Hispanics in the labor market are experiencing a strong negative effect.
Followed by Native-born Hispanics, Blacks are currently the only major racial and ethnic group whose
unemployment rate is in double digits, 11.5% in the fourth quarter of 2008, while Latino U.S. citizens had
the second highest rate of unemployment (9.5%) in the same time period. Changes in the employment
rate as well as other indicators of labor market activity during the recession have been less severe for
them than for immigrant Hispanics.
According to the National Bureau of Economic Research, the economy in the United States has been in
recession since December 2007. However, in previous reports published in 2008, the Pew Hispanic
Center presented data captured during the early phases of the recession. One of the studies, which
focused on the construction industry’s slowdown, showed that employment conditions for Latinos had
deteriorated during 2007, even before the economic recession was acknowledged.
Since the report was based on census data, immigration status was not established to indicate if
workers are in the country documented or undocumented. Immigration status is not recorded in the
source data. According to estimates by the Pew Hispanic Center, unauthorized migrants account for
about 5% of the U.S. labor force, and about one-third of the foreign-born labor force.
In industries such as construction, workers without work permits are overrepresented, accounting for
12% of employment, according to a 2006 study by Jeffrey S. Passel, Senior Research Associate with the
Pew Hispanic Center. Most unauthorized migrants are from Latin American countries, with those from
Mexico accounting for about 55% of the total, according to this report.
In the current report, authored by Rakesh Kochhar, Pew’s Associate Director for Research, the extent to
which persons ages 16 and older participate in the labor force, either working or seeking work, is also
influenced by economic conditions. People are drawn into the labor market during expansions, and they
withdraw during recessions.
REPORT: Unemployment Rises Sharply Among Latino Immigrants
| Hispanic Institute of Social Issues © 2006-2011 All rights reserved. webmaster@hisi.org |
Eduardo Barraza is a journalist and writer,
Barriozona Magazine's editor, and director of
the Hispanic Insitute of Social Issues.
E-mail: editor@barriozona.com
Barriozona Magazine's editor, and director of
the Hispanic Insitute of Social Issues.
E-mail: editor@barriozona.com
Published by the Hispanic Institute of Social Issues in Phoenix, Arizona
|
| HISTORY IS ABOUT TO CHANGE Grassroots Journalism |
RECESSION One of the studies,
which focused on the construction
industry’s slowdown, showed that
employment conditions for Latinos
had deteriorated during 2007, even
before the economic recession was
acknowledged.
Photo by Eduardo Barraza/BARRIOZONA
which focused on the construction
industry’s slowdown, showed that
employment conditions for Latinos
had deteriorated during 2007, even
before the economic recession was
acknowledged.
Photo by Eduardo Barraza/BARRIOZONA
