In 1980, a million Hispanics resided in five Midwestern states: Illinois, Indiana, Michigan, Ohio, and Wisconsin. The Midwest, however, is not a region of the country generally associated with a Hispanic population. Few studies on the economic performance of Hispanics in the Midwest are available. This study examines how Midwest Hispanics have fared in the labor market during the changing economic conditions of the last decade. Using 1970 Census data, the 1976 Survey of Income and Education, and the MArch 1981 Current Population Survey, the employment status of Midwest Hispanics during the last decade is examined. Favorable employment conditions characterized the beginning of the decade; the national employment rate in April 1970 was 4.3 percent. The Midwest reported in 1970 a higher median income for Hispanics than any other region. The Hispanic population was expected to increase dramatically due to favorable economic conditions. The seventies, however, materialized as a decade of economic contraction. By 1980, unemployment rates in the region approached historic levels. With the exception of Illinois, the projected increase in the Midwest Hispanic population in 1980 did not occur. During the economic downturn, Hispanics experiences higher rates of unemployment than whites. Hispanics continues to be especially vulnerable to a decline in industrial jobs; over half of the males and two-fifths of the females attributed their employment in 1980 to manufacturing. Although Hispanics will benefit from efforts to revitalize basic industries such as steel, auto, and rubber, revitalization of industrial America will not by itself guarantee jobs for Hispanics. Many of the new industrial jobs will require advanced skills and training. Unless revitalization involves addressing the low educational attainment of Hispanics, these industrial Jobs will be beyond the grasp of Hispanic workers. Finally, discrimination against Hispanic workers continued in both the best and worst of economic times. Hispanic males earned in 1969 about one-fifth less than whites, and the gap continued throughout the decade. A prior study in 1970 showed the earnings gap remained, even after controlling for human capital characteristics. A cursory analysis of males' earnings in 1980 showed a higher rate of return for schooling for whites than Hispanics. These findings suggest the need for strong anti-discrimination efforts by the government in favorable as well as unfavorable employment conditions.

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