Unemployment Benefits Could Impact Latinos

By Raisa Camargo, Voxxi

Members in Congress have insisted on establishing a balanced approach to the fiscal cliff, while urging the extension of unemployment benefits for the past few weeks to avoid affecting the most vulnerable populations.

Democrats in the Senate including Sen. Tom Harkin, Sen. Harry Reid and Sen. Chuck Schumer have all signaled that not extending unemployment benefits would be detrimental for those who rely on it for income revenue.

The highest rate of long-term unemployment are among minorities

“We know from statistics that the highest rate of unemployment in America now, long-term unemployment, are among minorities, African-Americans and Hispanics,” Sen. Tom Harkin explained in a previous interview.

“They’re the ones that have been the hardest hit.”

The number of persons applying for unemployment benefits up ticked to 17,000 last week after several weeks of decline, the Associated Press reports. That means that in previous weeks companies were noted to have laid-off less workers.

The effect on Latino communities is less certain. Although some argue that cutting off unemployment benefits would affect Latinos, a study released by the National Employment Law Project indicates that only 34 percent of Latinos applied for unemployment benefits based on a 2005 supplement of the current population survey.

National Council of La Raza (NCLR) policy analyst Alicia Criado indicates that not many Latinos would qualify for unemployment benefits because of the rules.

“It’s definitely a threat to working and middle class families,” she said. “Latino workers don’t always have the privilege of being in a position that would offer that type of security and benefit.”

In addition, Latinos are also less likely to experience long-term unemployment citing that they compose 18 percent of that figure, according to data cited by NCLR. Part of the reason is because Latinos are relatively young, may return to school, are overrepresented in industries that ebb and flow like construction and agriculture.

The Latino unemployment rate is at 10%

Still, the Latino unemployment rate stands at 10 percent and it has stayed relatively stagnate for the past few years.

“If it is the case that many Latinos face various barriers when trying to access jobs then they’re at a significant disadvantage when trying to compete,” she said. “What we find is that Latinos are often relegated to low-wage, low skill jobs, which offer minimal to no opportunities for career advancement.”

Some analysts have also questioned whether the Department of Labor will be focusing specifically on this growing workforce and how the economic policy agenda will be driven to also bolster Latino job skills.

In regards to the unemployment benefits, President Obama has insisted that any fiscal cliff package should include extending unemployment insurance. A few days after Christmas, cutting off unemployment insurance would affect two million Americans who are actively searching for a job claimed White HouseCommunications Director Dan Pfeiffer.

According to the NELP study, Latinos are less likely than whites to receive unemployment insurance if they are jobless. Approximately 29 percent of unemployed Latinos receive unemployment insurance, compared to 33 percent of white workers, according to data cited by NCLR.

Still, roughly 700,000 Latinos have been unemployed for a year or more, which means that if Congress fails to reauthorize the Emergency Unemployment Compensation program set to cut off on December 31, 2012, some of these workers would be affected.

“The truth is that the Latino workforce is the fastest growing segment of our labor market. By 2050 one in three American workers will be Latino,” Criado said. “Our economy won’t work without Latinos.”

This article was first published in Voxxi.

Raisa Camargo is a staff writer at Voxxi.