If American Latinos were an independent country, their gross domestic product would rank fifth in the world, surpassing that of the United Kingdom, India and France, according to a report released Thursday.
According to a report by Latino Donor Collaborative in collaboration with Wells Fargo, Latino economic output was $2.8 trillion in 2020, up from $2.1 trillion in 2015 and $1.7 trillion in 2010. LDC is a non-profit organization. profit, nonpartisan group focused on reshaping perceptions of American Latinos through data and economic research.
In terms of personal consumption, American Latinos represent “a consumer market larger than the entire economy of countries like Canada or South Korea,” the study found, which reflects Hispanics’ gains in personal income through higher employment rates and educational advancements. . In 2020, Latino consumption was measured at $1.84 trillion.
“This report proves that our country’s greatest growth opportunity lies in our Latino cohort in the US,” said Sol Trujillo, co-founder and chairman of the board of Latino Donor Collaborative. “We’re not just talking about population growth and workforce growth, but also economic growth in terms of wealth creation, businesses founded, homes purchased, products purchased, movie tickets and sports tickets purchased, streaming subscriptions, you name it.”
Latinos, who make up 19% of the U.S. population, are responsible for more than half of the U.S. population growth from 2010 to 2020 and more than 65% of the population growth from 2019 to 2020. Latinos make up about 25% of American youth.
Three-quarters of the Latino population was concentrated in just 10 states in 2020: Arizona, California, Colorado, Florida, Georgia, Illinois, New Jersey, New York, North Carolina, and Texas.
According to the report, Latino growth has prevented a decline in population and labor force in three states — New Jersey, New York and Illinois — from 2010 to 2018.
That’s important because “growth has the impact of tomorrow,” said one of the report’s authors, Dan Hamilton, director of economics at California Lutheran University’s Center for Economic Research and Forecasting. “What happened yesterday has an impact on today.”
While studies show that the Covid pandemic took its toll on Latinos personally and financially, the report found that Latinos’ economic output jumped from equal to the world’s eighth largest GDP in early 2020 to fifth by the end of the year.
The report also found that Latinos’ wages and salary incomes grew more than non-Latinos between 2010 and 2020, although there is still a significant pay gap for Latinos compared to non-Latino whites.
Despite the pandemic, real wages and incomes for Latinos grew 6.7% in 2020, while for non-Latinos it shrank by 1.1%.
“What we see – not just in GDP, but in all the other data we look at – is that Latinos and Latinas prevailed. They came through,” said Hamilton. “They may have gotten sick with Covid sometime in 2020. , but two or three weeks later they were back to work.”
Hamilton said that while the data showed a decline in the employment rate of the non-Latino population after the Covid pandemic, “for Latinos, it rose,” he said.
As a result, Latino real GDP shrank a small amount in 2020, by 0.8% compared to 4.4% for non-Latinos.
In terms of home ownership, Latino households grew 29.2% from 2010 to 2020, compared to 5.8% for non-Latinos. However, Latino home ownership still lags behind non-Hispanic white home ownership.
In education, the number of people with a bachelor’s degree or higher grew 2.8 times faster for Latinos than for non-Latinos between 2010 and 2020.
While Latinos still lag behind whites in earning college — 22% of Latino adults ages 25 and older have an associate degree or higher, compared to 39% of all U.S. adults — the proportion of Latinos with a bachelor’s degree or higher in 2020 increased by 13%.
The findings are released as part of a series of reports on Latinos discussed at L’Attitude, a conference that examines the state of Latino leadership, participation and representation in corporate America, as well as in the public, media and entertainment sectors. . The conference, which takes place Thursday through Sunday in San Diego, examines issues surrounding topics from wealth building to health inequalities. Speakers include former President Barack Obama and the CEOs of several companies, including Nike and Accenture.
The report is based on data from 2020, the most recent year for which information is publicly available. It includes data from the Census Bureau, Bureau of Economic Analysis, and Bureau of Labor Statistics, among others.
“American Latinos are leading the growth in every category. This is why every company needs to understand that investing in this cohort and catalyzing more growth is essential for shareholders, employees and customers,” said Trujillo.
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