A new Pew Research study published this week reveals that Latino households in the United States are the demographic group hit the hardest by the coronavirus economy.
In recent months, the U.S. economy has contracted at a record rate, a near 33% annualized pace in the second quarter. Unemployment rates are soaring, and Latino households are having the most trouble making ends meet.
The Pew study surveyed over 9,600 US adults in April and June, and the results paint a worrisome picture. Hispanic unemployment has peaked to a high of 18.5% in April, a big jump from just 4.8% in February, and higher than the 2008 Great Recession peak of 13.9%. In April, non-Hispanic White Americans recorded a 12.8% unemployment rate, Black Americans a 16.2% and Asian Americans a 14.2%.
The numbers come as a blow for Latinos, whose unemployment numbers had been steadily decreasing since the Great Recession and in recent years had closed the gap with White Americans to within 1 and 2%.
59% of Latinos surveyed said at least one person in their household lost their job or had their pay cut during the month of May, versus 43% of U.S. households overall. Most Latinos polled said they do not have emergency funds to cover three months’ worth of expenses. Half or more cited financial issues like paying bills, debts, and healthcare costs as a daily or nearly every day worry.
The study’s lead author, Jens Manuel Krogstad, explained how the mass of layoffs that the country has experienced occurred in business sectors, like hospitality and health services, where Latinos are overrepresented. Additionally, he noted that immigrants overall have had a more difficult time during the recession. “We do know immigrants tend to hold different types of jobs than those born in the US and it might affect how they’re impacted by the outbreak,” he explained.
Hispanic women in particular are the hardest-hit group of people. The unemployment rate for Hispanic women was 20.5% in April, versus 16.9% for Hispanic men. “It’s different than previous recessions where male sectors, such as manufacturing and construction, were the hardest hit,” Krogstad said.
And Latinos also have a bleaker view of the future than does the rest of the country. 70% expect that the worst consequences of the pandemic are yet to come. 40% of the rest of U.S. adults, by contrast, say that the worst of the pandemic is behind us.
As for relief, a high 78% of Latinos say it will be necessary for Congress to pass another economic relief bill in addition to the one passed in March.
Until and if that happens, Latinos everywhere throughout the United States live in fear of losing it all. Jennifer Proaño, a Florida restaurant manager and server who recently lost her job, explained how seven months ago she had finally saved up enough to buy herself a one bedroom apartment, which she now fears she may lose. “It meant the whole world to me to have my own little place in this world, something I can own by myself, working hard as I do, saving my money,” Proaño said.
Photo: Paul Sancya/AP