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The total economic output, or gross domestic product (GDP), for Latinos in the United States totaled to $2.8 trillion in 2020, up from $1.7 trillion in 2010.
If the population of Latinos in the United States were its own country, it would be the fifth-largest GDP in the world. That is larger than the GDPs of France, India, and the United Kingdom, according to the Latino Donor Collaborative’s 2022 Latino GDP report.
The Latino GDP report serves as a “factual view of the large and rapidly growing economic contribution of Latinos living in the United States.”
Let’s dive deeper into the factors that contribute to the U.S. Latino GDP!
Growth of the Latino GDP
Today, Latinos account for 18.9% of the total U.S. population.
As the Latino population has continued to grow rapidly, it has become the largest racial/ethnic minority in the nation.
And as the size of the population has grown, its GDP has grown with it. The Latino GDP is the third-fastest growing among the 10 largest GDPs from 2010 to 2022.
Latinos also experienced growth in wages and salary income, with Latino real income increasing to 4.3% a year compared to 2.1% for Non-Latinos.
Similarly, Latino real wage and salary income also rose to 6.7% compared to Non-Latino’s income, which shrank by 1.1%.
The labor force participation rate for Latinos in 2020 reached an all-time high of 6.5%, making them more likely to be working or seeking work.
The LDC report highlights that the single largest component of GDP is personal consumption, noting that Latino real consumption grew more than three times faster than Non-Latino from 2010 to 2020.
“Rapid growth of Latino consumption is driven by large gains in personal income, which naturally flows from Latinos’ rapid gains in educational attainment and strong labor force participation,” according to the report.
The Latino GDP’s top industry sector is finance and real estate, representing $459.7 billion of economic activity.
Other top sectors regarding the U.S. Latino GDP include:
- Professional and business services: $378.4 billion
- Government services: $368.3 billion
- Education and healthcare: $233.0 billion
- Construction: $210.2 billion
As far as geography of the Latino GDP, three-quarters of the Latino population lived within 10 states across the U.S. in 2022. This includes Arizona, Florida, New York, California, Texas, Georgia, Illinois, New Jersey, and North Carolina.
However, the LDC report estimates that major hotspots for Latino population will be outside of the 10 states in places like Idaho, North Dakota, Tennessee, and Ohio.
“We see that wherever we find strong economic growth in the United States, we will find Latinos enabling and driving that growth,” according to the report.
Impact of the COVID-19 Pandemic on Latino GDP
The COVID-19 pandemic brought upon challenges for all.
The Latino community was strongly impacted by the COVID-19 pandemic, becoming one of the major causes of deaths within the Latino community.
“Because of a historic lack of investment in health infrastructure for Latino communities, because of their strong work ethic, and unique family structure, Latinos were among the groups hardest-hit by COVID-19,” according to the LDC report.
Life expectancy for Latinos also dropped due to the COVID-19 pandemic from 81.8 years in 2019 to 78.8 years in 2020.
When looking at COVID-19’s impact on the economy, the real GDP for Latinos in the U.S. dropped 0.8% in 2020, according to the report.
Despite the hardships caused by the COVID-19 pandemic, the report highlights how Latinos’ resiliency ultimately contributed to their economic strength.
“Latinos were more likely to work in roles deemed essential and in front-line jobs which exposed them to individuals infected by COVID-19,” according to the report.
Strengths Behind the Growth in Latino GDP
The LDC report attributes several factors within the Latino population that contributed to community tenacity and GDP growth, including:
- Hard work shown through the high labor workforce participation despite being heavily affected by COVID-19, including higher rates of infection and deaths.
- Self-sufficiency through determination to keep working amid the pandemic and receiving fewer benefits from resources like the Paycheck Protection Program and the CARES Act.
- Optimism following a survey conducted by the Public Policy Institute of California, which reports that 62% of Latinos were optimistic in thinking that the second year of the pandemic would bring about financial and economic improvements.
The Latino GDP report lists more economic drivers including:
- Educational attainment
- Population and labor force growth
- Household formation and ownership
Other reports also confirm that Latinos are driving the U.S. economy thanks to a rise in population, workforce participation, entrepreneurship, and economic contributions.
“Put plainly, Latinos are both drivers of economic growth for the U.S. economy and also a source for resilience that benefits all Americans,” according to the LDC report.
A Report Card for Your Community
Resources like the LDC’s Latino GDP report can help people understand how Latinos impact the economy.
“We hope this report will be used as a foundation for creating wealth in our country by capitalizing on the growth of the U.S. Latino cohort through mainstream marketing, media participation, appointing Latinas and Latinos to executive leadership roles and to boards of directors, investing capital in this cohort for the benefit of our total economy, and engaging this cohort as the leaders of our 21st century economy,” writes Sol Trujillo, LDC co-founder and board chairman.
Are you looking for a resource that can help measure health-related factors in your area?
Look no further than the Salud America! Health Equity Report Card!
The Report Card shows a variety of results related to conditions like social economic status, healthcare, and number COVID-19 cases and vaccinations.
Find the results of your county and compare them to others across the state and the nation!
GET YOUR HEALTH EQUITY REPORT CARD!
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