Feeling The Crunch

After a brief and non-intended hiatus from blogging, I have been meaning to comment on recent news about how Hispanics are being affected by the current economic situation.  A story in the Miami Herald caught my eye recently because Hispanics leaving the country due to economic prospects became news-- a departure from the news that continually document the reasons why Hispanics continue to reach U.S. soil.  Previously, a USA Today story from mid May stated that Hispanics are being among the hardest hit by the downturn due to the housing slump and how it affects them on two fronts: less construction jobs, less houses to put as collateral to fund a business.  Then, last week, the Pew Hispanic Center came out with its own report that points to the weakened construction industry as the lead culprit of the 6.5% unemployment rate among Hispanics-- almost 2% more than the national rate at this stage.  The report also shows a decline in wages, and a contrast between Latino men and women in the workforce-- the latter's overall participation has declined sharply. Now, keeping in mind that the Hispanic buying power is the equivalent to the Mexican economy, these stats should be considered as a metric of the health of the consumer pocketbook and more importantly, the purse.  Women continue to make most of the buying decisions in the U.S. Hispanic household, and if they are feeling the pressure more than other groups, their cautious shopping habits will be increasingly pronounced. 

But from all these news, the silver lining is there are still pockets of job growth for Hispanics in the health/hospital and business services arena -- a positive indicator that the demographic continues to move upward.  However, all these stories point to the conclusion that the economic crunch is affecting us all and that it will continue to influence consumer behaviors, making it much more important to be mindful and sensitive about presenting opportunities and consumer education that can help Hispanics navigate the situation and maximize resources available to them.