Dan Hamilton & Matthew Fienup, California Lutheran University Paul Hsu & David E. Hayes-Bautista, University of California Los Angeles
In 2021, despite a second year of COVID-19 pandemic conditions, Latinos in the U.S. propelled the overall economy forward with inflation-adjusted Latino GDP growth of 7.1 percent – a full 2 percentage points higher than the growth of Non-Latino GDP. Latinos living and working in the United States produced a total economic output (or GDP) of $3.2 trillion in 2021. If Latinos living in the United States were an independent country, the U.S. Latino GDP would be the fifth largest GDP in the world. This year’s report confirms that Latinos are drivers of economic growth and an important source of resilience for the broader U.S. economy.
The 2023 U.S. Latino GDP Report is the 6th annual report produced by a team of researchers from the California Lutheran University (CLU) Center for Economic Research & Forecasting and the UCLA Center for the Study of Latino Health and Culture. This report is part of a broad research agenda known as the Latino GDP Project.
Separate reports and analysis have been prepared for the United States as well as more than a dozen large Metropolitan Areas. The 2023 U.S. Latino GDP Report is accompanied by the launch of a year-long media campaign created by an award-winning production team at XinTube. The first five Latino GDP video capsules will be presented on September 13, with additional capsules to follow each week for a year.
Highlights of the 2023 U.S. Latino GDP Report:
• The total economic output, or gross domestic product (GDP), of Latinos in the U.S. was $3.2 trillion in 2021, up from $2.1 trillion in 2015 and $1.7 trillion in 2010.
• If Latinos living in the United States were an independent country, the U.S. Latino GDP would be the fifth largest GDP in the world, larger than the GDPs of entire countries such as the United Kingdom, India, or France.
• Among the world’s 10 largest GDPs, the U.S. Latino GDP is the third fastest-growing from 2010-21, while the broader U.S. economy ranks fifth. From 2010-21, the growth of U.S. Latino GDP was nearly 2.5 times that of Non-Latino GDP. Despite being just 19 percent of the U.S. population, Latinos are responsible for 31 percent of the growth of U.S. GDP since 2010.
• From 2010-21, Latino real consumption grew 3 times faster than Non-Latino. U.S. Latinos now represent a consumption market larger in size than the entire economy of countries like Canada or South Korea.
• From 2010-21, Latino real wage and salary income grew 3.4 percent per year, compared to only 1.5 percent for Non-Latinos. Latino incomes are growing more than twice as fast as Non-Latino incomes.
• Large gains in incomes naturally flow from Latinos’ rapid gains in educational attainment and strong labor force participation. From 2010-2021, the number of people with a bachelor’s degree or higher education grew 3.0 times faster for Latinos than Non-Latinos. In 2021, the Latino Labor Force Participation premium was 6.0 percent. In other words, Latinos were six percentage points more likely to be actively working or seeking work than their Non-Latino counterparts.
Latinos are drivers of economic growth and a source of resilience…since 1513
“Latinos have been economically active in what is now the United States since 1513. That’s over 500 years of economic activity,” explains David Hayes-Bautista, co-author and the report’s Chief Demographer. “During the 300 years of the Viceroyalty of New Spain, Latino commerce travelled along the Camino Real that stretched from St.
Augustine in Florida to San Francisco, California. Ships crossed the Pacific and Atlantic oceans, tying together the Americas, Asia, Africa and Iberia to create the world’s first truly global economy.”
“This history is particularly important when considering the results of the 2023 U.S. Latino GDP Report,” says Matthew Fienup, co-author and the report’s Chief Economist. “When we look at data from 2010 to 2021, we see unmistakable evidence that Latinos are drivers of economic growth and an important source of resilience for the broader economy. But these eleven years of data represent the continuation of a centuries-old tradition – of Latinos bettering themselves and their communities and, in doing so, creating economic growth that benefits all.”
CLU’s Center for Economic Research & Forecasting and UCLA’s Center for the Study of Latino Health and Culture will present the 2023 U.S. Latino GDP Report at a live event from 10:00am-noon at the UCLA Faculty Center on September 13, 2023. For additional information, please email [email protected]. To register, click HERE.
The 2023 U.S. Latino GDP Report is part of a broad research agenda known as the Latino GDP Project, a project of Community Partners, www.communitypartners.org. For questions about the report, please contact: Matthew Fienup, Chief Economist, www.clucerf.org, (805)493-3668; and David Hayes-Bautista, Chief Demographer, www.uclahealth.org/ceslac, (310)794-0663.
For access to the full report (under embargo until 10am PDT, Wed. Sept.13), please contact: [email protected]
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