AS/COA Panel Highlights Hispanics' Economic Contributions

In recognition of Hispanic Heritage Month, the Americas Society and the Council of the Americas brought together business, academic, and media leaders and policymakers to look at the importance of Hispanic immigrants to the U.S. economy and efforts to promote their full integration into the country’s social and economic fabric. A Davos-style panel discussion analyzed how the current economic situation and unemployment affects the U.S. Hispanic population and the role that the Hispanic labor force can play in contributing to renewed economic growth. In addition, the panel focused on immigration trends and how to promote greater integration. A representative of New York Governor David Paterson read a letter in which the governor acknowledged his support of the program and overall AS/COA efforts in the area of Hispanic integration.

This program was held as a complement to the AS/COA Hispanic Integration Initiative and the recently launched white paper titled U.S. Business and Hispanic Integration: Expanding the Economic Contributions of Immigrants. The white paper demonstrates a collective commitment by private sector leaders to the integration of immigrant communities and offers best practices for encouraging Hispanic workforce development and community integration.

To listen a podcast of the program, please click here.

Speakers:

• Richard Alba, Distinguished Professor of Sociology, Graduate Center, City University of New York
• Ricardo Aguirre, Counsel to the New York Secretary of State
• Sergio Galvis, Partner, Sullivan & Cromwell LLP
• Guillermo Linares, Commissioner, New York City Mayor's Office of Immigrant Affairs
• Jorge Ramos, Senior Anchor, Telemundo 47
• Christopher Sabatini, Senior Director of Policy, AS/COA and Editor-in-Chief, Americas Quarterly (moderator)
• Rebeca Vargas, Senior Vice President, Head of Multicultural Segment, JPMorgan Chase Bank

Unemployment Rate and Remittances

Hispanics, like the rest of U.S. society, are negatively affected by the economic downturn and rising unemployment. In fact, the recently released September unemployment figures show a jobless rate of 7.8 percent for Hispanics—nearly 2 percent above the 6.1 percent nationwide unemployment rate. Rebeca Vargas pointed out that a slowdown in the service industry has reduced job availability in construction and manufacturing. Rising unemployment poses a challenge both for Hispanic communities in the United States as well as for immigrants’ home communities; fewer jobs translate into lower earnings and less money available to send back home as remittances. Reduced remittances, as Vargas noted, are of particular concern in countries like Mexico where remittances can serve as a vital source of revenue. Sergio Galvis drew attention to El Salvador, which is undergoing a similar challenge with remittances declining approximately 18 percent.

One topic of conversation revolved around whether rising unemployment could prompt immigrants, especially recent arrivals, to return to their native countries. In 2001, 20 percent of Hispanics were thinking about going home, and today, that number has jumped to nearly 50 percent. Yet Guillermo Linares sees it as premature to establish any correlation between the economic situation and immigrant communities. Remittance levels were declining prior to the economic turmoil. Additionally, he suggested that it is too early to speculate as to whether the economy is deterring new immigrant arrivals. Today, 37 percent of the New York City population is foreign born.

Economic Growth

Hispanics generally take out fewer loans from banks, which may result in them being in a better position in the current economic scenario. However, this more distant financial relationship often translates into less access to various growth opportunities. In fact, nearly 50 percent of Hispanics do not have access to credit and 38 percent do not have bank accounts, according to Vargas. In response, banks have begun to offer services uniquely tailored to meet the community’s needs. For example, JPMorgan Chase Bank is now serving Hispanics in their language of choice, developing products geared toward individual communities, and partnering with community organizations and others to reach out to communities.  

As documented in the AS/COA’s recent white paper on U.S. business and Hispanic integration, Hispanic entrepreneurs have established an estimated 2.2 million businesses in the United States, generating $389 billion. Galvis drew attention to Hispanics’ past contributions and the potential for this diverse population to stimulate the economy through ingenuity, innovation, and entrepreneurship. In fact, in his closing remarks, Linares called specific attention to immigrants’ role as small business owners.

Harnessing Capacity

The retirement of baby boomers, especially those in managerial roles, will result in new opportunities for Hispanics to enter the private sector and fill critical labor positions. Richard Alba noted that Hispanics can fill this gap in leadership only if given access to necessary education. He called for more neighborhood studies on Hispanic youth trends in order to analyze best practices for fostering integration and to determine how local environments influence educational attainment. Jorge Ramos agreed, calling education a primary vehicle to increase the number of Hispanics in the labor force, especially in managerial positions.