By: Ruth Hidalgo
The U.S. Latino economy is the largest in the world, even larger than that of India and close to that of Germany. The economic activity of Latinos living in the U.S. is over $3 trillion and continues to grow steadily. If they were a country, Latinos would be the fifth largest economy in the world; in the state of California alone, the economy would be the 21st largest in the world, surpassing the economy of Switzerland. This economic activity is calculated using the expenditure method by aggregating goods in categories such as: consumption, residence, investment, imports, and exports.
According to research by the Center for the Study of Latino Health and Culture, Anglo-Saxon economic activity has declined while that of Latino origin has been growing steadily. This is related to the increase in the income of the Latino community at an annual rate of 4.7% compared to 1.9% for the average of the other racial groups.
It is worth noting that the increase in the Latino population is coupled with the increase in their labor force at a 5.4% higher rate than that of non-Latinos. This rate represents an important growth, if we take into account the decline suffered during the pandemic, since it was the community most affected by the COVID19, triggering the unemployment rate.
The increase in the Latino employed population is largely due to the fact that most Latinos are under 25 years of age, compared to the average age of 60 to 64 for other racial groups. These young Latinos are entering the labor market and contributing to tax revenues and the economy.
Another factor to keep in mind in this growth is due to the advancement of the Latino community in their education, as they have prepared themselves academically in universities with bachelor’s, master’s, or technically skilled labor.
Young Latinos work in the areas of arts, entertainment, recreation, lodging and food services, as well as in education, health, and social services. Latinos working in finance or as managers increased by 6-8%, as did entrepreneurial businesses.
Many Latinos are leading small businesses in the U.S., generating employment opportunities for many people. The U.S. Small Business Administration has said that Latino or Hispanic-owned businesses generate more than $800 billion in annual revenues, creating jobs and wealth. It also stated that there are more than 5 million Hispanic or Latino-owned businesses in the country, that is, one in every four businesses, employing about one million workers with more than $100 billion in annual payroll.
Cities where numerous Latino communities have settled and developed therefore offer greater and better job opportunities for Latinos, such as, for example. The city of Los Angeles has become an attractive destination for those seeking employment in entertainment, technology, manufacturing, and services.
It is important to highlight that the success of Latinos in the United States is due to their strength and ability to adapt, to their resilience, because behind every Latino entrepreneur there is dedication, sacrifice, determination, and perseverance.
