NCPA - Daily Policy Digest - Hispanics Benefit as Businesses Opt for Cheaper Labor

NATIONAL CENTER FOR POLICY ANALYSIS
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Hispanics Benefit as Businesses Opt for Cheaper Labor

Hispanic employment has risen over the past several years, reflecting the expanding Latino population as well as the emphasis employers are putting on hiring cheaper labor, according to the Bureau of Labor Statistics.

Hispanics gained 600,000 jobs between the final quarters of 2000 and 2002 -- reaching a total of 16.7 million jobs.

Meanwhile, non-Hispanic employment fell by 1.8 million, to 119.7 million.

Hispanics were less vulnerable to job cutbacks because they tend to work in the growing service sector -- avoiding the manufacturing sector, which has suffered the brunt of job losses over the past two years.

According to the bureau's Current Population Survey of March 2002, Hispanics in full-time jobs pulled a median wage of $21,000 a year -- almost 20 percent less than blacks and one-third less than white workers.

Immigrants tend to take low-paying jobs that others would shun, and they keep them longer. Illegal immigrants hold on to jobs longer -- in part because they are ineligible for unemployment benefits, experts report.

Nevertheless, since the number of jobs created didn't grow as fast as the number of Hispanics looking for work, the group's overall employment rate rose to 7.7 percent in February, from 5.7 percent in December 2000.

Source: Eduardo Porter, "Hispanics Gain Amid Overall Decline in U.S. Jobs," Wall Street Journal, March 25, 2003.

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http://online.wsj.com/article/0,,SB104854452166799100-search,00.html

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