World Bank: Remittances favorably resisting market fluctuations
While many countries have been able to recover relatively well since the global recession, the financial crisis is deepening in certain parts of the world. Despite this, remittances have proven to be largely immune to these fiscal issues, international officials recently stated.
According to the World Bank, money transfer transactions grew by more than 12 percent last year to $372 billion, higher than the initial estimate which was released earlier this year. In addition, given the robust flow of remittances through the first half of 2012, transfers could hit $467 billion two years from now.
Despite the vitality of remittances, the report said that several factors still affect the market.
"Persistent unemployment in Europe … is affecting employment prospects of existing migrants and hardening political attitudes toward new immigration," the report stated. "There are risks that if the European crisis deepens, immigration controls in these countries could become even tighter. Volatile exchange rates and uncertainty about the direction of oil prices also present further risks."
These most recent comments were added to an annual report which was released earlier this year by the World Bank.
Should the European crisis become more of an issue, the impact on remittances may be lessened through governmental actions that can make immigration easier. The World Bank released a book on migration and remittances in June, advocating for the removal of burdensome restrictions on mobility. By doing so, this could make any further deepening of the world's financial crisis more tolerable, as more immigrants would be able to work in other countries like the U.S. so that they can send money home to their families.
With the U.S. unemployment rate stuck at 8.2 percent, some immigrants who are already in the country or who are considering moving here may be worried that they will have difficulty finding a job. But according to the Conference Board, many businesses are hiring.
Recently, the Conference Board reported that online advertised work vacancies rose by 232,000 in June to more than 4.9 million jobs.
June Shelp, vice president at the Conference Board, noted that online labor demand posted an increase in 44 of the 50 states last month, with some of the largest gains coming in the West, specifically Nevada, Arizona and Colorado. Many people who have emigrated from Mexico take up residence in these states. Florida has a large Hispanic population as well. There, online labor demand jumped by 15,000, as there was a sizable increase in online ads for various jobs such as for nurses, truck drivers and elementary school teachers.
Metropolitan localities also fared well in June, as 20 of the country's largest metro areas witnessed labor demand creep northward. In just about half of these localities, many people have been successful in finding work, as the Conference Board says there were approximately two unemployed workers for every online advertised vacancy.