Immigrants working in U.S. falling short on money

2008-07-31 16:31:59 (GMT) (Caymanmama.com - Business News)

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Reno, Nevada (CaymanMama.com) — Mexicans working or operating in other countries are transferring less money to their homes, stalling construction, threatening businesses and blocking cash flow to villages from where more than half of the populace in the U.S. works.

Analysts said the slowdown in the U.S. economy and the stepped-up migrations rates were responsible for the fall in payments that large numbers of migrants made in order to sustain their families in villages back home.

According to Mexico’s Central Bank, the payments have decreased approximately two percent this year (i.e. $11.6 million), the maximum fall down in so many years since reliable records were maintained. In addition, the purchasing influence has been greatly battered due to the weakening of the U.S. dollar which lost approximately eight percent of its original value against the Mexican peso.

In Mexico, businesses which once flourished selling everything from bricks to beds, have stopped paying. In the city of the fertile fields beneath the snow clad slopes of the Iztaccihuatl volcano, there is a little left to depend on but small farms.

“There is no money at all,” Carlos Escalon said of his family business that sells concrete bricks and blocks in order to help individuals construct their homes from the cash immigrants send home. The sales have decreased by a third, compelling the company to discharge seventy percent of their staff.

Of the immigrant workers in the United States, Escalon said, “They lose their jobs, and then they’re afraid to leave the house. It’s like they’re trapped.”

The Bank of Mexico’s President, Guillermo Ortiz added that nearly twenty percent of Mexican workers in the United Sates have employment in construction, an industry which has slowed down remarkably.

Approximately 152, 000 Mexican migrant workers in 2007 lost their construction jobs, whereas the overall unemployment for Mexican migrants in the U.S. rose to 6.4% from 5.5% since last year, as reported by Pew Research Center.



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