A Call to Action for Latinos as Economic Uncertainty Looms.

With the fourth quarter just begun, the economic signs are confusing and often confounding.? Inflation, recession, consumer spending, gas prices, market volatility, supply chain woes, and winter Covid surge worries — the news is filled with economic uncertainty.? That fuels economic anxiety, and perhaps exponentially so for Latinos, who were disproportionately hit by the pandemic in every way, including financially. According to Pew Research, 61% of Latino households suffered job or income loss during the Covid-19 outbreak, a number that far surpasses every other group.?

? For the Latino community, past recessions have been worse for us than any other demographic.? A recent report recalls the difficult years between 2006 and 2010, where Hispanic unemployment climbed to 8 percent, compared to 3 percent for non-Hispanics. Today, some indicators in industries like construction, where Hispanics make up a third of the workforce, rising mortgage rates and a decrease in building permits are nervous-making.? Of course, not every industry is showing signs of wear and tear.? The report balances the downturn of construction with the upturn seen in the hospitality and leisure business seems to still be riding the post-pandemic surge of travel.???

We do not know what will happen over the next months and there is no reason to panic.? But there is every reason to plan.? It is a very good time to take stock of where you are so that you can continue to move forward.???

In the past 10 years, according to the 2021 State of Latino Entrepreneurship Initiative, Latino-owned businesses are starting at an extraordinary 44% growth rate compared to the 4% rate for non-Latino-owned firms.? What’s more, these businesses have grown their employee base by 55% compared to 8% for white-owned businesses.? While Latinos are opening businesses across every sector, they are outpacing other groups in technology.? The rise of Latino entrepreneurs is great news, but it also brings real risks at times of economic uncertainty.

If you own your own business, now is the time to strategize about how you are going to adapt to changing circumstances, especially as it may involve building new staffing models. The tightening of capital, already harder for Latinos to access than other groups, maybe even harder and more expensive to get in the coming year.? If you are struggling to build a plan on your own, reach out to the community.? If you can give strategic and planning help, make yourself accessible and known – even through the comments here, for a start.

Think now, and plan for difficult times, so you have the security of knowing you are prepared for all circumstances. I don’t mean to be alarmist and I certainly don’t have a crystal ball, but I do know I would rather have a plan I never have to use than face an economic storm unprotected.? It just isn’t worth the gamble, or the loss of time and money should the economy go into recession.? Now is the time to be innovative and inventive. Getting the help you need can make all the difference.?

A message to Corporate America — Latinos are the fastest-growing part of the workforce.? We account for 40% of the U.S. workforce growth.? We are getting bachelor's and graduate degrees at a remarkable pace.? We are digitally savvy. We are loyal, committed employees. In the future, it will be impossible to hire a full workforce without Latinos, and equally impossible to be a profitable business without selling your goods and services to Latinos.? Keep hiring, promoting, and supporting your Latino employees — it is a strategy that will serve you well in the future.?

One last thought.? Now more than ever,? we all must continue our hard work of supporting and advancing Latinos everywhere.? Be conscious of the power of building networks.? Proactive in supporting each other. ? Get help and give help. Hire and don’t fire. Be creative and innovative.? A unified community can weave an effective safety net.? When we come together, we can meet any and every challenge.