Don’t Tell White Supremacists, But Latinos Are Going To Drive Most Of The US Economic Growth
If it hasn’t already been apparent that Latinos are a big force in the U.S. economy, a new study argues that the group is the future for gross domestic product (GDP) growth. According to the Latino Donor Collective U.S. Latino GDP Report, which was prepared by California Lutheran University, the study says the economic contribution of the U.S. Latino community will become increasingly vital moving forward to the economy.
The study says that the GDP among U.S. Latinos made huge leaps within the last decade, up from $1.7 trillion in 2010 to $2.3 trillion in 2017. On a compounded annual basis, that’s the third-highest growth rate among all global economies in that period. GDP among Latinos also grew at a faster rate than the overall U.S. economy during those eight years. This can be mainly attributed to high labor-force participation, large population growth and increasing consumer spending.
The reports highlight the strides and economic growth that Latinos have had in recent years. More importantly, it makes the argument of how vital this population group will be to continue moving the U.S. economy as a whole. “Latinos currently are and will increasingly become a critical foundation of support for the new American economy,” the study says.
It’s no surprise as the Latino population has made an immense impact on the U.S. as a whole in the last decade, whether its through education, socially and now economically.
The study, which was released last month in concurrence with the L’Attitude conference in San Diego hosted by The National Association of Hispanic Real Estate Professionals, argues why these advancements are now finally being seen by Latinos. This generation of Latinos is expected to make some of the biggest contributions in the coming decades due to being well-positioned than previous generations.
During previous waves, most notably the during the ’50s and ’60s, U.S. Latinos were more likely to be immigrants who worked in low-wage jobs in positions like agriculture and construction, according to David Hayes-Bautista, director of the Center for the Study of Latino Health and Culture at UCLA and an author of the study. Now, as the population group has settled in and has made social advancements, the Latino workforce is expected to be very different.
As these generational gaps increase, so does the median age of Latinos in the U.S. which is currently 46 years old. While on the other hand, their children’s median age stands at 19. This essentially means that this forthcoming Latino demographic is set to enter a workforce more prepared, whether financially or educationally, than any previous one. That can be attributed to having access to better schools and being native English speakers. Latinos have also made huge leaps in the last decade when it comes to getting a bachelor’s degree as the number increased by 51% from 2010 to 2017, while the non-Latino educated population grew by 21 percent.
“Given robust population growth, high labor force participation, rising incomes, and strong increases in educational attainment, we expect the significant growth premium enjoyed by U.S. Latinos to be maintained in the years ahead,” said Matthew Fienup, executive director of the Center for Economic Research and Forecasting at California Lutheran University and one of the authors of the study.
One thing is for sure, any success that the U.S. economy is going to have in the near future can be attributed to the advancements of Latinos as well.
Latinos are contributing economically now more than ever and this growth will only continue as the population does. The Latino population in the U.S. is growing rapidly, which in return has increased the group’s economic role in the country. Between 2008 and 2018, the Latino share of the entire U.S. population grew from 16 percent to 18 percent. Latinos also accounted for about half (52 percent) of all U.S. population growth over this decade.
With a bigger population group that also means more people at work. The U.S. Census Bureau estimates than Latinos will account for an additional 30 million workers that will enter the U.S. labor force by 2060.
This is all amounting to even more growth, socially and economically, when it comes to U.S. Latinos. We can only imagine what impact the next generation of Latinos will have on this country and the strides our people will have along the way.