Economic Fall-Out From Arizona Immigration Law
The news on the economic front in Arizona resulting from the unconstitutional immigration law is not surprising. There are many people who are worried and concerned and it is reflected in the economic data and anecdotal evidence.
Firm numbers illuminating the economic fallout of SB 1070 are hard to come by as the bill has yet to take effect. Also, summer tends to be slow for business and tourism in Arizona because it’s so hot.
But anecdotal evidence from business owners, real estate agents and community leaders indicates the mere specter of the bill has created a culture of fear among Hispanics in Arizona that’s slowly paralyzing sectors of the economy. Hispanics make up 30 percent of the state’s population.
The state’s unemployment rate in June rose for the third month in a row, to 9.7 percent. Gov. Jan Brewer signed the bill in April.
Traditionally, community groups look to indicators such as the housing market, school enrollment and data from utility companies to track economic fluctuations within a certain group, said Edmundo Hidalgo, president and CEO of Chicanos Por La Causa, a community outreach program in Phoenix.
Based on feedback from clients and preliminary data, Hidalgo said his group estimates that rental vacancies in predominantly Latino neighborhoods will be 10 to 15 percent higher than the normal rate of 12 percent.
“People are scared, and they don’t want to wait around to find out what’s going to happen with SB 1070,” said Hidalgo, whose group offers housing, economic and education services to low-income families and individuals, both undocumented and U.S.-born.
“Regardless of their status, people are frustrated with an environment that’s not accepting and potentially threatening, and they’re fed up with being targeted and singled out by law enforcement. It’s driving them out of the state, and not necessarily to better situations.”
The Arizona housing market, which was already suffering from one of the highest foreclosure rates in the country, has also taken an extra hit since the passage of the law, according to real estate agents who spoke with CNN.
Some homeowners who purchased property in the past year are looking to unload, according to Saul Pua, a real estate agent who sells residential properties in neighborhoods in Phoenix’s Latino communities.
Since groups nationwide began announcing boycotts of the state because of SB 1070, at least 40 meetings have been canceled. That’s resulted in the loss of $12 million in lodging alone, according to Kristen Jarnagin, spokeswoman for the Arizona Hotel & Lodging Association.
Summer is typically the low season, she noted, and pointed out that tourism was up 8 percent statewide in June 2010 compared with June 2009, which was one of the “worst summers ever” because of the recession.
Despite that slight uptick, more telling is the lack of inquiries for future bookings, she said.
