US Latinas contribute $1.3 trillion to GDP, about as much as Florida’s economy, report finds

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Latinas will contribute $1.3 trillion to US gross domestic product in 2021, up from $661 billion in 2010 and at a growth rate nearly three times that of non-Latinos over the same period, according to a new report funded by Bank of America and conducted by professors at California Lutheran University and UCLA.

The report was compiled using publicly available economic and demographic data from US agencies and shows “that Latinas are drivers of economic vitality in the United States, giving life to the US economy,” said economist Matthew Fienup, one of the authors and executive director of the research. from California Lutheran University’s Center for Economic Research & Forecasting during a Zoom briefing presented the findings on Monday.

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“Latinas outperform their gender and ethnic peers on key economic measures, including record levels of Latina labor force participation, educational attainment, and income growth,” he added in a press release.

The $1.3 trillion economic contribution by Latinas is roughly equal to Florida’s GDP, and is surpassed only by California, Texas and New York, according to the U.S. Bureau of Economic Analysis.

Fienup said Latinas are increasing economic output and labor force growth — nine times faster than non-Latinos — translating to higher incomes and economic mobility for Latinas.

“We are moving in the right direction. And the wage gap has closed, although Latinos face certain disadvantages relative to non-Latinos in the United States,” said Fienup, adding that Latinas outperform other groups in investing in starting a business and home ownership, although lack of access to capital.

Women overall have made huge gains in the C-suite and high-income industry representation. But improvements in the wage gap have stalled for about 20 years, including for Latinas. Black and Latina workers experience the largest pay gap of any group.

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Titled “Dando Vida a la Economia,” meaning “Giving Life to the Economy” in Spanish, the new study builds on six previous US Latino GDP Reports written in partnership with Bank of America to examine the contribution of Latinos living in the US to the rapidly growing economy.

Several factors are behind the rapid economic growth of Latinas, according to David Hayes-Bautista, author of the report and director of the Center for Latino Health and Cultural Studies at the UCLA School of Medicine.

“Older immigrant Latinas are aging out of the workforce, and their shoes are being filled by their U.S.-born daughters and granddaughters,” Hayes-Bautista said during Monday’s Zoom briefing. Today’s Latina workers are entering the workforce as functional bilingual professionals with higher levels of education than ever before, creating a slingshot effect, she added.

“These daughters and granddaughters of immigrants combine the incredible work ethic and selflessness of their elders with the rapid development of human capital,” said Hayes Bautista.

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