The Latino community is a key driver of the U.S. economy: its GDP is growing faster than that of the rest of the country. The total economic output of this group reached $4.1 trillion in 2023, almost three times what it was in 2010. With a GDP like that, if it were a standalone economy, the U.S. Latino GDP would be the fifth largest in the world, ahead of countries like Canada and the United Kingdom, and growing twice as fast as the U.S. economy as a whole.
These are some of the conclusions of the annual economic study prepared by the Center for Latino Health and Culture at UCLA and the Cal Lutheran Center for Economic Research. The report highlights the impressive size of Latino GDP, defining it as a “growth spot.” One of the key takeaways from the study is that “the economic contributions and performance of Latinos from 2019 to 2023 — including in the face of the pandemic — made the U.S. Latino GDP the single fastest-growing GDP among the world’s 10 largest, surpassing even China.” Between 2010 and 2023, the last year with full available figures, average annual growth of U.S. Latino GDP was 4.4%, compared to 2.2% for the entire U.S. economy.
For Dr. David Hayes-Bautista, director of this UCLA organization, this increased growth rate, especially in the last two years, demonstrates a steady trend.
One of the main reasons for this significant economic performance is the high labor force participation rate of the Latino community. “Since 2011, this participation rate has been four percentage points higher than that of non-Latinos, but in 2023, this rate was 6.7 percentage points,” says Hayes-Bautista. That is, that year, Latinos were 6.7% more likely to be actively working or looking for work than their non-Latino counterparts.
In his 2017 book, The New California, this scholar argued that Latinos have had the highest labor force participation rate since 1940. And it’s a trend that will continue to rise: Hayes-Bautista asserts that the Latino workforce will continue to grow among a population of 65 million people, which is very young and adds one million births per year.
Additionally, the report reveals that significant progress has been made in education since 2010. Since that year, the number of college graduates has grown three times faster among Latinos than among the rest of the population. “Latinos who reach the age of majority and enter the U.S. workforce are, overwhelmingly, second- and third-generation Americans. These children and grandchildren of immigrants combine the extraordinary and selfless work ethic of their elders with rapid educational attainment to boost not only Latino GDP, but overall U.S. GDP growth,” the report highlights.
This, along with the employment situation, has led to an increase in income among this population. In the 13 years studied by the UCLA and Cal Lutheran report, Latinos’ real wages have grown by 61.5% compared to 21.4% for the non-Latino population as a whole. This income has allowed their consumption to reach a record $2.7 trillion by 2023. Once again, the growth rate is faster than that of the rest of the country.
For Dr. Hayes-Bautista, health also plays an important role. After lamenting the high mortality rates from Covid-19, which were particularly painful for Latino workers, he explains that deaths from heart disease, cancer, and other illnesses are currently lower than those of other communities in the country.
Regarding the future, Hayes-Bautista remains cautiously optimistic despite the significant economic and trade challenges the country faces under the Donald Trump administration. “Any setback is going to affect us,” he warns. The expert points out that Latinos were hit hard both during the 2008 Great Recession caused by the financial crisis and during the pandemic, although the community has emerged from the latter with great strength, as evidenced by continued economic growth. “What worries me most are the tariffs and the loss of consumer confidence,” he explains.
“We are the spearhead of growth. If they saw us, if they invested in the Latino workforce and entrepreneurs as they do in the Anglo population, the United States’ economic preeminence would be maintained throughout the 21st century,” Hayes-Bautista asserts. “We would all benefit.”
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