Latinas in the United States are emerging as a powerful economic force, contributing a staggering $1.3 trillion to the nation's economy in 2021. This figure surpasses the entire economy of Florida and places Latina economic output behind only California, Texas, and New York. The 2024 Latina GDP Report, produced by the California Lutheran University, the UCLA Center for the Study of Latino Health & Culture and Bank of America, underscores the growing impact of Latinas on the broader U.S. economy.
The GDP generated by Latinas in 2021 highlights the impressive economic growth of this demographic. Over the past decade, their economic contribution has surged by 51.1%, rising from $661 billion in 2010 to $1.3 trillion in 2021. This rapid expansion outpaces the notable gains made by Hispanic males and is nearly three times faster than the growth of the Non-Hispanic GDP.
One of the key drivers of this economic boom is education. The report highlights significant gains in educational attainment among Latinas, a factor that has directly contributed to their increasing economic output. Between 2010 and 2021, the number of Hispanic females with a bachelor's degree grew by 103%, far outpacing the 38.3% growth rate for Non-Hispanic females.
These educational achievements have allowed Latinas to enter higher-paying professions, boosting their earning potential and driving further economic growth. The report suggests that this trend will likely continue as more Latinas pursue higher education and take advantage of growing opportunities in the workforce.
In addition to educational attainment, Latina labor force participation has been a significant factor in their economic contribution. From 2000 to 2021, Latina labor force participation increased by 7.5 percentage points, reaching 60.5%. During the same period, Non-Hispanic female labor force participation remained stagnant.
Latinas have now surpassed Non-Hispanic women in workforce participation, highlighting their growing presence in industries across the economy. Despite being just 9.3% of the U.S. population, Latinas accounted for 30.2% of labor force growth between 2010 and 2021.
Latinas are not only entering the workforce in greater numbers, but they are also seeing significant income growth. The report reveals that from 2010 to 2021, the real incomes of Hispanic females grew by 46%, compared to just 18.5% for Non-Hispanic females.
While Latina incomes still lag behind those of other demographic groups, the pace of growth is notable. Latinas' income growth rate is 2.5 times higher than that of their Non-Hispanic counterparts, suggesting that as more Latinas gain education and workforce experience, the income gap may continue to narrow.
The economic resilience of Latinas was particularly evident during the COVID-19 pandemic. While the pandemic brought widespread economic disruption, Latinas continued to drive growth. Between 2019 and 2021, the U.S. Latina GDP grew by 7.7%, far exceeding the 1.5% growth seen in the Non-Hispanic GDP during the same period.
Even as many industries struggled to recover, Latinas saw a 9.3% increase in real wage and salary income during the first two years of the pandemic. In contrast, Non-Hispanic incomes declined by 1.7%. This growth underscores the critical role Latinas played in supporting the U.S. economy during one of its most challenging periods.
Beyond their immediate economic contributions, Latinas are also playing a crucial role in shaping the future of the U.S. economy. Despite making up only 9.3% of the U.S. population, Latinas were responsible for 26.7% of the country's population growth between 2010 and 2021. This population growth, combined with their increasing educational attainment and workforce participation, suggests that Latinas will continue to be a major driver of U.S. economic vitality in the years to come.
The report highlights that Latina economic activity is both a source of resilience and vitality for the broader economy. As Latinas continue to invest in education and enter the workforce at higher rates, their economic impact will only grow, benefiting not just the Hispanic community but the nation as a whole.
In general terms, latinos are playing an increasingly vital role in the U.S. economy, with their economic participation more active and intense than that of Non-Hispanics. In 2021, the total U.S. Latino GDP - The total economic output (or GDP) - of male and female Hispanics living in the United States - reached $3.2 trillion, a significant increase from $1.7 trillion in 2010.
If Latinos in the U.S. were a separate country, their GDP would rank as the fifth largest in the world, surpassing the economies of India, the United Kingdom, and France. "The importance of rapid Latino growth rates, and the intensity of economic activity which they represent, cannot be overstated. The vitality of the overall U.S. economy depends on the intensity of the economic activity of U.S. Latinos. Latino economic premiums drive greater economic vitality for all", the study notes.
More striking than its size is the rapid growth of the U.S. Latino GDP, which grew 2.4 times faster than the Non-Latino GDP from 2010 to 2021, making it the third-fastest growing among the world's ten largest economies.
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