According to a report, Latinos represent almost 80 percent of the growth of the workforce in the United States, whose income will reach 2.5 trillion dollars in 2021 and their purchasing power is set at 3.4 trillion.
The Latino Donor organization published the sixth annual report on Latin American Gross Domestic Product, published by the WP Carey School of Business Administration at Arizona State University, in association with Wells Fargo bank.
“Undoubtedly, the Latino economy in the United States is a force to be reckoned with, driven by strong growth in gross domestic product (GDP), significant population growth, stronger participation in the labor force, and increasing educational achievements,” said Sol Trujillo, co-founder of the organization.
In 2021, Latinos account for $2.5 trillion and their purchasing power is estimated to be $3.4 trillion, while the Latino labor force participation rate is 5.4 percent higher than that of non-Latinos.
“Latino consumption and purchasing power have shown impressive growth rates that are 2.1 to 2.4 times higher than their non-Latino counterparts,” the report added. “Between 2011 and 2021, Latinos will contribute 29.9 percent of the nation’s GDP growth.”
The document maintains that Latinos represent the fifth largest economy in the world, after the United States, China, Japan and Germany.
Ana Valdez, president of the organization, said that “Latinos have their own savings, they participate as entrepreneurs at a more advanced level, they speak English even if they immigrated as young people or children of immigrants .”
“They bring a small revolution in the economy, they work or have their businesses in better paying industries,” he added. “It’s not so much immigration from another country, but the migration of people who have already achieved something in California, Texas or Florida and moved to smaller states.”
Despite the widespread perception that Latinos – mainly immigrants – have more jobs in agriculture, construction or services, the report shows that work in public administration generates 13.5 percent of Hispanic GDP.
“In public administration and factories, in companies, they have the power to make decisions. In construction – which is the seventh largest contributor to the Latin GDP – our workers are already at the level of contractors,” added he.