After the Great Recession, the income of Latinos is higher, compared to that of Latinos born in the United States, which has not fully recovered yet.
After the Great Recession, the income of Hispanic workers fell, reaching its lowest level in 2013. In the following years the recovery process began, which all American workers lived.
According to the Pew Research Center, the average personal income of Latino workers was $ 28,400 in 2007, at the peak of the recession. By 2013, their median income had fallen to $ 26,400, a loss of 7%. A rapid rebound followed, and the average income of Latinos increased to $ 30,000 in 2017, a 14% gain from 2013 to 2017, enough to balance the loss induced by the recession.
However, Latinos born in the United States make up 52% of the Hispanic workforce and almost half of the growth in the US labor force. Their average personal income, which was $ 32,000 upon entering the recession in 2007, reached a minimum of $ 28,800 in 2013, 10% less than in 2007. While revenues recovered from 2013 to 2015 (reaching $ 31,000 in 2015), by 2017 had fallen back to $ 30,000, 6% less than in 2007.
The fact that US-born Latinos’ incomes remain below pre-recession levels is not because their economic recovery in recent years has delayed the recovery of others. The average personal income of US-born Hispanics increased 4% from 2013 to 2017, the same as for US-born workers in general. The reason why these gains did not produce US-born Hispanics a full recovery from the Great Recession, is because they experienced greater financial losses during that period.
Youth and a lower level of education of US-born Hispanics are factors that influenced, US-born Hispanic workers are on average five years younger than US-born workers in general.
48% of US-born Latinos aged 25 or older hold no more than a high school diploma, compared to 37% of all adults over 25 born in the US, according to the latest published data. Hence, younger and less educated workers are more vulnerable in economic recessions. In conclusion, compared to US-born Hispanics, foreign-born Hispanics experienced smaller losses immediately after the Great Recession and greater gains in recent years.