Hispanic Workers Hardest Hit by Economy (from the Providence Journal)

Much of the dropout research demonstrates that students who leave school before graduation tend to do so because they have to help support their families. We should expect a rise in dropout rates given the challenges with the economy. -Dr. Louie F. Rodriguez
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Tuesday, November 18, 2008
Hispanic workers hardest hit by economy
Hispanic Workers Seen As Hard Hit By Downturn
Providence Journal By Andy Smith November 16, 2008

Hispanic family income fell between 2000 and 2007 and the recession is expected to further erode their purchasing power.

A report recently issued by the Economic Policy Institute, a nonprofit research organization based in Washington, D.C., that focuses on low- and middle-income workers, found that Hispanic workers across the country experienced little economic progress between 2000 and 2007. According to the authors of the report, that spells disheartening news for Hispanic workers in the current economic crisis.

"I expect that Hispanics will be hurt very badly," said Algernon Austin, director of the program on race, ethnicity and the economy for the institute, and co-author of the report.

Austin and co-author Marie T. Mora found that median Hispanic family income fell by 2.2 percent between 2000 and 2007, compared with a 9.5 percent growth rate among Hispanic families in the 1990s.

Median weekly earnings for Hispanic workers grew by 4.7 percent from 2000 to 2007, from $480 a week to $503 a week. Median income for all U.S. workers experienced very little growth in the same period, but at $695 per week it was significantly higher than that of Hispanic families.

"In sum, the Hispanic population began the 2000s business cycle significantly worse off economically than the nation as a whole, and they are ending the cycle in virtually the same place," the report concluded. "Unfortunately, as we face what looks like a severe economic downturn, Hispanics run the risk of falling further behind."

Ramon Martinez, president and chief executive officer of Progreso Latino in Rhode Island, said he's in general agreement with the report. "Rhode Island is a microcosm of the country ... I think the recessionary impact on Hispanics will be severe." Martinez said Progreso Latino's mission is to empower the Hispanic community through education, training and advocacy.

According to the federal Bureau of Labor Statistics, national unemployment rates for Hispanics jumped from 7.8 percent in September to 8.8 percent last month. The national unemployment rate for all workers is 6.5 percent. The unemployment rate in Rhode Island for all workers is 8.8 percent, the highest in the country. (The state Department of Labor and Training does not categorize monthly unemployment rates by ethnicity.)

A key factor in rising unemployment among Hispanic workers has been the collapse of the U.S. housing market and the subsequent implosion of the construction industry. According to federal statistics, since its peak in September 2006, the construction industry has lost 663,000 jobs.