The contribution of Latinos to the U.S. economy rose to $3.2 trillion in 2021, which would rank fifth in the world if the group were an independent country, just behind Germany and ahead of the UK and India, according to a report out Wednesday.
U.S. Latinos, who have a high workforce participation, population growth, and increased productivity compared to other cohorts, also saw incomes rise. During 2011-2021, the group’s income increase at an annualized rate of 4.7% compared to 1.9% for non-Latinos, according to the 2023 Latino GDP Report, which measures the cohort’s economic output in the country.
Across the U.S., Latinos contributed 20.9% of real GDP growth during that decade, Arizona State University researchers said in the report, which was produced by the nonprofit Latino Donor Collaborative in partnership with Wells Fargo & Co.
Latinos made significant contributions to states like California, Texas and New York, but among smaller states, the report’s authors observed “a silent revolution taking place.” In the decade ending in 2021, South Dakota, North Dakota and New Hampshire each saw Latino gross domestic income grow at a real, annual rate of at least 10%.
This data should inform the wider conversation about immigration in the U.S., Sol Trujillo, LDC co-founder and chair, said in an interview.
“If we have uneducated policies that say ‘we don’t want immigrants’ we are not going to be able to create and fill new jobs, which could stimulate a dramatic growth in our economy,” Trujillo said.
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Compared with the world’s biggest economies, U.S. Latino GDP was the third-fastest growing economy during the decade ending 2021, behind China and India.
In the report, Latino GDP is a measure of purchases made by and on behalf of Latinos. Gross domestic income is measured through the incomes earned by Latinos residing in the U.S.
The largest components of the U.S. Latino economy include public administration, manufacturing, real estate and health care, the study shows. Between 2011 and 2021, there was a 6.8% increase in individuals holding a bachelor’s degree or higher.
According to the U.S. Census Bureau, there were 62.6 million people of Hispanic origin in the U.S. in 2021, almost 19% of the total population.
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© 2023 Bloomberg L.P
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