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Hispanics Economic Status

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Hispanics in the US, mobility within the US

Tue, Dec 19 2006, 11:44 GMT
by Alejandro Neut

BBVA Bancomer

• A greater percentage of the Hispanic population relocated than that of the overall US population  
• Relative to the overall US population, more Hispanics relocated because of work than because of college  
• There are now ten states in which Hispanics make up more than eleven percent of the state’s population  
• The number of Hispanics is growing in both metropolitan areas and specially in small cities

Recent Mobility Trends by Hispanics in the US

The renowned flexibility of the American labor force has been illustrated most recently by the vigorous relocation activity of the Hispanic population within the US. Recent analyses of the 2005 Census confirm important and ongoing demographic shifts. Hispanics for example, traditionally concentrated in a few states such as Texas, California and New York, now have a significant and growing presence in other areas of the country. As importantly, there is a slow trend to move away from large metro areas where Hispanics have traditionally lived.

Today, in all states at least 0.7% of the population speaks Spanish at home (see map in last page). In at least 23 states the Spanish-speaking population makes up between 5% to 10% of the state’s population. Moreover, there are ten states where the Spanish-speaking population exceeds 11%. Leading this list is New Mexico (29.2%), followed by Texas (27.7), California (27.6), Arizona (19.8), Nevada (18.7), Florida (17.9), New York (13.5), New Jersey (13.3), Illinois (11.9), and Colorado (11.7).

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Published on  Tue, Dec 19 2006, 11:44 GMT

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Hispanics Economic Status

Mon, Sep 4 2006, 11:11 GMT
by Javier Amador

BBVA Bancomer

• Over the last 10 years, 45% of total new jobs have been filled by Hispanic workers
  
  
• In the last five years the occupational status of Hispanics worsened in relative terms; yet, in absolute terms they increased their presence even in professional occupations
  
  
• The housing sector cooling off would likely affect job creation for Hispanics more than for Non Hispanics
  
  
• The disparity in earnings between Hispanics and Non Hispanics has increased; yet, in absolute terms the earnings of Hispanics have increased sharply

I. Introduction

In the last ten years, the total labor force increased by 15.1 million or 11.0%, while the Hispanic labor force increased sharply by 6.8 million (48.6%), mainly fueled by higher levels of immigration. The increase in Hispanic labor force helps to explain almost half (48.9%) of total in that period, even tough it only represents 13.6% of total labor force. Over the last ten years the economy has generated 14.5 million new jobs, of which 6.8 million (44.9%) have been filled by Hispanics --almost 1 of every two new jobs. The increasing relative importance of Hispanics in the labor market raises concerns on its impact on native-born workers.

As we showed more extensively in previous Monitor Hispano numbers, and contrary to popular belief, immigrants do not push natives out of jobs; in fact, they tend to work in low-skilled positions that natives cannot or will not fill in sufficient numbers to meet demand. In other words, the main determinant of immigration is labor demand and thus it is cyclical, that is, it increases when economic growth and job creation are higher and vice versa, which implies that immigrant workers tend to be a complement –and not a substitute- of native-born workers, particularly of those with higher training and better skills. According to Federal Reserve’s former president A. Greenspan, “As the influx of foreign workers in response to the tight labor markets of the 1990s showed, immigration does respond to labor shortages” (Testimony before the Senate Special Committee on Aging, February 27, 2003).

The increasingly important presence of Hispanics in the labor force has also drawn interest in their economic status and well-being. The focus of this Hispanic Monitor is on the economic status –measured by employment and earnings- of Hispanics and on how they compare to Non Hispanics. Has the economic status of Hispanics has worsened in relative terms? Is there a growing gap with respect to Non Hispanics or a catching up? Would an economic deceleration, driven mainly by the housing sector cooling off, affect more Hispanics than Non Hispanics?

II. Differences between Hispanic and Non Hispanic workers

• Unemployment rates
• Occupations
• ¿Have occupational dissimilarities widened?
• ¿Would the weakening housing sector affect more Hispanics than Non Hispanics?
• Earnings

III. Conclusions

The importance of Hispanic workers has increased sharply: almost 1 out of every 2 new jobs is filled by Hispanics. Lower education and poor skills imply that Hispanics have lower wages and higher unemployment rates than Non-Hispanics. The attractiveness of earning between 5 and 15 times more is strong enough to provide an ample supply of immigrants. Nonetheless, the housing sector cooling off could provide a restraint to labor demand, particularly of new immigrants. The life-cycle of immigrants suggests that in the long-run, Hispanics will achieve higher educational levels and with it, higher incomes and better opportunities.

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Published on  Mon, Sep 4 2006, 11:11 GMT