US economic down turn has hit migrants remittances

A poll published by the Inter-American Development Bank reports that migrants are sending less money home from the USA.

In 2006 three-quarters of migrants did; this year, 2008, only half are doing so. Nor is it only Mexico; Brazil, the second largest recipient of remittances in the region, saw them slide by 4% last year to US$7.1billion.

The principal factor is the US deepening economic gloom on top of tougher measures on employing migrants and increased surveillance by the Homeland Security on the border.

The fact is that job figures in May showed unemployment had risen to 5.5%. The slump in housing and construction - where many migrants, especially the newer arrivals, work - has been especially painful.

The Pew Hispanic Centre published a study in June showing a 7.5% jobless rate among migrants, rising to 8.4% among Mexicans and 9.3% for those who came to the US after 2000.

Over 220,000 lost construction jobs last year. And those in work are earning less; wages of Latino construction workers tumbled in 2007.

Says IAMTN CEO Lady Olga Maitland, "This is a trend to follow carefully. Of course nobody knows how long the gloom will last.

"Globally things are different. The Middle East, Australia, parts of Asia and much of Africa will no doubt see migration continue apace for some time yet. Where economic growth remains strong, as in most emerging markets, migrants will be drawn in. "

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