16. REMITTANCE FLOWS TO MEXICO AND EMPLOYMENT OF MEXICAN IMMIGRANTS
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in men (275,000 jobs and 6.1 percent), whereas employment among female Mexican immigrants remained practically unchanged. Meager labor demand in the United States also meant that over half a million wage and salary Mexican immigrant workers lost their full-time job. Another finding is that the declines in employment, average earnings, and the total earnings of Mexican immigrant workers almost were affecting only those without citizenship. From 2008 to 2009, employment in this segment fell by 318,000 jobs (6.5 percent), and their average earnings declined more than $100 per month (5.1 percent), implying a $14 billion fall in their total earnings of wages and salaries (11.2 percent). It is also noteworthy that the contraction in the employment of Mexican immigrant workers was relatively larger than that observed among other immigrant workers and the labor force as a whole in the United States. Furthermore, from 2007 to 2009 the deterioration in the unemployment rates of Mexican immigrant workers was higher than others. This is because Mexican immigrants tend to work in sectors of economic activity that are sensitive to the economic cycle. Such sectors are characterized by higher levels of unemployment. During the period studied, employment increased in services at the expense of a decline in the industry jobs. This was also evident in the case of Mexican immigrant workers. Mexican workers’ move to service jobs also meant a shift toward lower-paying jobs. This has led to a sharp fall in the total earnings of these workers. The scenario described for 2008–09 changed in 2010. Despite the persisting weakness of labor demand in the United States, employment of Mexican immigrant workers recorded a small positive annual variation in the first semester of 2010 (0.6 percent) and a larger increase in the second (2 percent). This improvement in the employment of Mexican immigrant workers reflected in the second half of the year showed annual increases in all three sectors of economic activity: agriculture, services, and industry. Within the last sector, annual increases were observed in the manufacturing industry during the second semester. Finally, the recovery of Mexican immigrant worker employment in the United States and the small improvement in the participation of those with full-time jobs began to be reflected in a slight rebound in their total earnings of wages and salaries. This combination of factors explains the annual increase already exhibited by remittance flows to Mexico since the second quarter of 2010.
Notes 1.
In recent years Mexico has been the main source of immigrants who obtain permanent residence in the United States. During fiscal years 2000–07, an average of 169,011 Mexicans per year obtained permanent residence, and in fiscal years 2008, 2009, and 2010 the corresponding figures were 189,989, 164,920, and 139,120 Mexicans, respectively (Office of Immigration Statistics 2010). A fiscal year is the 12-month period beginning October 1 and ending September 30.
2.
The total cost of a $300 remittance to Mexico sent from different cities in the United States and made via electronic transfer dropped from an average of $28.50 in 1999 to $23.20 in 2000 and to $5.60 in 2009 (Bonilla and Cervantes 2010).