Many Latinos in Arkansas Lack Financial Security

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Even as the national unemployment rate has dropped, the outlook in Arkansas is still dreary. The underemployment rate in the state remains high with a large proportion of the state’s population (especially ethnic and racial minorities) stuck in low-wage jobs.

According to a report from the Corporation for Enterprise Development (CFED), 52% of the state’s population cope with the “new normal” situation of perpetual financial insecurity. Most are unable to build the savings needed for three months in the event of an emergency.

For Latino households, the situations are especially harsh as many live below the federal poverty level, especially compared to white households.

Arkansas placed 39^th on a list of financial security among its residents in a report published by the Assets & Opportunity Scorecard. This assesses all 50 states and the District of Colombia on 61 outcome measures in five areas: financial assets & income, businesses & jobs, housing & homeownership, and health care and education. Overall, Vermont ranked first and Mississippi last.

In Arkansas, less than 15% of Latino adults hold four-year degrees. In health concerns, 25% of Latino adults indicated that money concerns prevented them from seeing a doctor.

“There certainly are positive signs that the nation’s economy is improving,” said Andrea Levere, President of CFED. “But there also is very compelling evidence that many households are stuck in a financial hole and are struggling to dig themselves out.”

Some key findings from the Scorecard include: nearly 44% of households in the country are “liquid asset poor,” meaning they have less than three months of savings; home ownership rates remain at all-time lows, falling to 63.1% for the eighth consecutive year.