Wednesday, July 9, 2008 - 12:41 PM MST

Central Bank of Mexico: Immigrants in U.S. sending fewer dollars
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Phoenix Business Journal - by Mike Sunnucks

The housing market fallout and rough economy are cutting into the money immigrant workers send back to Mexico.

The Central Bank of Mexico reports that worker remittances to Mexico came in at $5.3 billion for the first quarter of 2008 versus $5.5 billion in first-quarter 2007.

The first-quarter number also is down from the $5.8 billion reported by the Mexican bank for the fourth quarter and $6.3 billion reported for the third quarter of 2007.

Many Mexican immigrant workers send money back to their home country while working in U.S. markets such as Phoenix and Los Angeles.

The Economic Policy Institute said Wednesday that declines in the U.S. real estate market and construction employment are contributing to the drop in remittances.

Arizona has lost 28,900 construction jobs since May 2007, according to the state Department of Commerce.

Immigrants workers are prevalent in labor-intensive sectors such as construction and landscaping as well as lower paying service occupations.

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