Truth matters. Community matters. Your support makes both possible. LAist is one of the few places where news remains independent and free from political and corporate influence. Stand up for truth and for LAist. Make your year-end tax-deductible gift now.
Pandemic's Economic Impact Hits LA Immigrants -- And Their Families Abroad
Experts are already predicting a significant drop in remittances from the U.S. to Mexico due to coronavirus. (Chris Ratcliffe/Getty Images)
As more and more people lose their jobs, immigrants are faced with the challenge of paying their rent and buying food here in the U.S., or sending money back to their home countries.
That's the problem that 50-year old Rosalia Olaya from Santa Monica is dealing with right now. She is originally from Oaxaca, Mexico, where her siblings live. Every month, she sends about $1,500 to $2,000 to help them out.
But this month, Olaya had to stop. Her income has taken a hit since the pandemic swept through the L.A. area.
NO WORK, NO MONEY
Before COVID-19, Olaya worked three jobs: as a property manager, notary public and an income tax preparer.
But now, work -- especially notaries and tax preparation -- has slowed down because she can't meet people in person.
"At this point last year I would have already completed all my clients' [taxes]," Olaya said. "Right now, I have only completed half."
Sponsored message
She now only has $2,000 a month to support herself and the elderly mother who lives with her. That's the same amount she usually sends to Mexico to her brother, who has a medical problem, and her sister, a single mom with four kids.
"I have to really, really hold off because I don't know how long this is going to be like this," Olaya said.
THE IMPACT ACROSS BORDERS
Olaya is not the only one who sends money back home to her family.
Last year, immigrant workers sent back $36 billion from the U.S. to Mexico, according to Manuel Orozco, Director of the Migration, Remittances and Development Program at the Inter-American Dialogue, a D.C.-based think tank.
He expects remittances to drop by $6 billion by the end of this year.
"We are talking about 1 million households in Mexico that will not receive money in 2020."
Sponsored message
Ever since the pandemic hit, tourism to Oaxaca has virtually stopped, and work has all but dried up.
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
