The Impact on Remittances
As workers lose jobs, families in the United States are not the only ones to feel the effects.
Billions of dollars in remittances are sent from the U.S.to countries across the world every year. As immigrants suffer the economic consequences of the pandemic - sometimes more acutely as a result of their inability to access public programs - remittances will likely decrease and thereby affect families around the world. These are just a few of the stories we have heard so far:
Tomás’ father and his nine-year-old daughter live in two different South American countries but they both rely on remittances from Tomás. Every month Tomás sends $200 or more to his family members. Work authorization allows Tomás to receive unemployment insurance (UI) after losing his housekeeping job but the drop in income means he has only been able to send about half as much money to his family.
Eric and Alicia are ineligible for UI because of their immigration status. Worried about paying for rent and utilities, they cannot afford to send the usual monthly installments to their aging parents in South America.
Francis is expecting a bill for her husband’s COVID treatment any day now and has no idea how she can return to work without childcare, so remittances were an expense she had to cut. She sent her Central American family regular payments until she and her husband had their hours cut at work this year. Until she can get back to work, Francis cannot help financially support them as she usually does.
Phoebe is from the Caribbean and has been living in the U.S. for over 26 years old. She has five siblings, but none of them are in the U.S.. Phoebe has had low wage jobs. She has worked as a team member at a fast food restaurant, as well as a personal care assistant and a school bus monitor. These jobs helped her to raise her children in the U.S., and similarly empowered her to sustain her extended family in the Caribbean. She lost her job right before COVID and has been unemployed since. Phoebe is not currently receiving any insurance programs, and has not recently applied to any. She is unsure about her eligibility to these programs because of previous application denial. With her siblings significantly affected by the COVID crisis, Phoebe is experiencing emotional distress from not being able to continue supporting them. Phoebe is unsure about whether she will be able to get a job after COVID and be able to support her extended family again.
Mariel tries to help her 68 year old father who works in agriculture in Central America, so she sends what she can, usually about $100/month. However, she hasn’t been able to send any money since January when she stopped working after the birth of her daughter. She wants to go back to work so she can send money to her father who is sick and needs money to see a doctor. She understands the risk of working as a cashier in a buffet restaurant, but she needs $200 to send to her father so that he can pay for a doctor visit and CAT scan.
In Their Own Words
“Yo, le mando dinero a mi hija, le ayudo un poco a mi papa cuando puedo...a veces se me accumulaba todo y sentía que no me iba alcanzar la comida. Mandaba mensualmente antes de la pandemia, ahora desde la pandemia solo he podido mandar una o dos veces.”
“I send money to my daughter, I help my dad a little when I can...sometimes it all adds up and I feel like I might not have enough for food. I used to send [money] monthly before the pandemic, but now since the pandemic I’ve only been able to send [money] once or twice.”
Names and some details changed to protect confidentiality.