If US Latinos were an independent country, their gross domestic product would rank fifth in the world, surpassing those of the UK, India and France, according to a report released Thursday.
Latino economic output in 2020 was $2.8 trillion, up from $2.1 trillion in 2015 and $1.7 trillion in 2010, according to a report by the Latino Donor Collaborative in partnership with Wells Fargo. LDC is a nonprofit, nonpartisan group focused on reshaping perceptions of American Latinos through economic data and research.
In terms of personal consumption, US Latinos “represent a larger consumer market than the entire economy of nations like Canada or South Korea,” the study found, reflecting Hispanics’ gains in personal income through a increased labor participation and educational advancement. In 2020, Latino consumption was measured at $1.84 trillion.
“This report demonstrates that our country’s greatest opportunity for growth lies with our US Latino cohort,” said Sol Trujillo, co-founder and chair of the board of directors of the Latino Donor Collaborative. “We are talking not only about population growth and workforce growth, but also economic growth in terms of wealth creation, businesses formed, homes purchased, products purchased, movie tickets and sports tickets purchased, streaming subscriptions , whatever”.
Representing 19% of the US population, Latinos are responsible for more than half of the US population growth from 2010 to 2020 and more than 65% of the growth in the US population. population from 2019 to 2020. Latinos make up approximately 25% of young Americans.
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 prevented a population and workforce decline in three states (New Jersey, New York and Illinois) between 2010 and 2018.
That’s important because “growth is what impacts tomorrow,” said one of the report’s authors, Dan Hamilton, director of economics at the Center for Economic Research and Forecasting at California Lutheran University. “What happened yesterday is impacting today.”
Despite studies showing that the Covid pandemic affected Latinos personally and financially, the report found that Latino economic output went from equaling the eighth largest GDP in the world at the beginning of 2020 to the fifth largest when the year ended.
The report also found that Latino wages and earnings grew more than non-Latinos between 2010 and 2020, although a substantial wage gap still exists for Latinos compared to non-Latino whites.
Despite the pandemic, Latino real wage and salary income soared 6.7% in 2020, while non-Latinos shrank 1.1%.
“What we see, not only in GDP, but in all the other data that we are looking at, is that Latinos and Latinas prevailed. They pushed themselves forward,” Hamilton said. “They may have gotten sick with covid at some point in 2020, but two or three weeks later they went back to work.”
Hamilton said that while the data showed a decline in labor participation among the non-Latino population after the Covid pandemic, “for Latinos, it increased,” he said.
As a result, Latino real GDP contracted slightly in 2020, by 0.8% compared to 4.4% for non-Latinos.
In terms of home ownership, Latino households grew 29.2% between 2010 and 2020, compared to 5.8% for non-Latinos. However, Latino homeownership still lags behind non-Hispanic white homeownership.
In education, the number of people with college degrees or higher grew 2.8 times faster for Latinos than for non-Latinos between 2010 and 2020.
While Latinos still lag behind whites in college attainment (22% of Latino adults age 25 and older have associate degrees or higher, compared to 39% of all US adults). In the US), the number of Latinos with a bachelor’s degree or higher increased 13% in 2020.
The findings are published as part of a series of reports on Latinos being 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 sectors. , media and entertainment. . Held in San Diego Thursday through Sunday, the conference examines issues around topics ranging from wealth creation to health disparities. 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, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, among others.
“US Latinos lead growth in all categories. That is why all companies must understand that investing in this cohort and catalyzing further growth is essential for shareholders, employees and customers,” said Trujillo.
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This article was originally published on NBCNews.com