Good news for El Salvador -- US unemployment low
When the US economy is creating jobs, El Salvador benefits. This was easily seen in the May monthly report of family remittances received in El Salvador. Remittances are the dollars earned abroad by workers who send them back to families in their homeland.
Remittances for the first 5 months of the year grew 8.95% from the same period in 2017. Salvadoran families have received some $2.23 billion in funds from abroad this year.
El Salvador's Ministry of the Economy attributed the strong growth in remittances to the "dynamism" of the US labor market, where total unemployment has dropped to 3.8% and Hispanic unemployment has dropped to 4.9%. Remittance levels are strongly correlated to employment levels in the US.
Future remittance levels do face certain threats, however. The 195,000 Salvadorans with TPS protection will lose their work authorization in September 2019 and face a struggle to avoid deportation. Other US efforts to remove migrants will also impact the number of Salvadorans contributing to both the US economy and to the economy back home in El Salvador.
Remittances for the first 5 months of the year grew 8.95% from the same period in 2017. Salvadoran families have received some $2.23 billion in funds from abroad this year.
El Salvador's Ministry of the Economy attributed the strong growth in remittances to the "dynamism" of the US labor market, where total unemployment has dropped to 3.8% and Hispanic unemployment has dropped to 4.9%. Remittance levels are strongly correlated to employment levels in the US.
Future remittance levels do face certain threats, however. The 195,000 Salvadorans with TPS protection will lose their work authorization in September 2019 and face a struggle to avoid deportation. Other US efforts to remove migrants will also impact the number of Salvadorans contributing to both the US economy and to the economy back home in El Salvador.
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