Slow economy hits Hispanics hard - USATODAY.com: WASHINGTON — Unemployment is rising faster among Hispanics than the rest of the U.S. population as the economy slows, a development that has ripple effects across the nation and into Latin America.
The steep, continuing U.S. housing downturn has had a disproportionate impact on the Hispanic workforce, which is highly concentrated in construction. Because homeownership is also the major source of wealth for Latino families, falling house prices have made it harder for small-business owners to use their residences as collateral for needed loans to run or expand their firms.
Further, the weakening job market, and state and federal crackdowns on illegal immigrants, have reduced the number of Hispanics wiring money to Latin America. Millions of families who depend on so-called remittance payments could be pushed into poverty if current trends continue, according to the Inter-American Development Bank.
The U.S. Hispanic unemployment rate jumped to 6.9% in April from 5.5% in April 2007. The African-American unemployment rate is higher, at 8.6%, but has risen less sharply in the past year. The white jobless rate was 4.4% in April.
