Imagine an economic powerhouse larger than the United Kingdom's, Canada's, France's, and Germany's—growing 70% faster than the rest of the United States. This isn't a foreign superpower; it's right here in America, fueled by a group you might not expect: the U.S. Latino population.
As we celebrate Hispanic Heritage Month, it's time to shatter a persistent myth: the misguided belief that immigrants and their descendants drain the U.S. economy. The reality? They're revitalizing it.
In this edition of the Latinos in STEMM Rising newsletter, we'll explore a $3.7 trillion economic trend driven by a dramatic rise in educational attainment among Latinos, which is changing the landscape of American prosperity.
Since publishing "Un Doctor Por Favor: Why We Need More Hispanic Physicians, and Why You Should Be One of Them," many people have asked about the economic impact of a more educated Latino population. The answer is clear: it's transforming the nation's financial landscape.
Whether you are of Hispanic heritage or not, this economic progression is shaping your future. Join me as we dive into the latest data, share inspiring stories, and challenge misguided preconceptions. Together, we'll show a positive vision of America's future—one where Latino success is American success.
Are you ready to discover how Latinos are not just participating in the American Dream, but saving it? Let's begin.
The Hispanic/Latino Contribution: a $3.7 Trillion Force with Latinas Leading the Charge
If U.S. Latinos were an independent nation, their GDP would be the fifth largest globally.
Within the impressive $3.7T figure lies an even more inspiring story – that of Latinas, whose contribution grew by 51.1% from 2010, reaching almost $1.3 trillion in 2021.
Meet Maria R., a second-generation Mexican-American entrepreneur from Los Angeles. Ten years ago, she started a small tech company in her garage. Today, her firm employs over 200 people and is valued at $50 million. "My grandmother crossed borders with nothing but hope," Maria says, her eyes glistening. "Now, I'm crossing technological frontiers. This is the American dream, amplified by our Latino spirit."
Maria's story is not unique. It's replicated across the nation, as Latinas drive economic growth that outpaces many global powerhouses.
Education: The Great Equalizer
The secret behind this economic surge and the reason for addressing it in this newsletter? Education. As I discussed in a previous edition, between 2011 and 2021, the number of Latinos with a bachelor's degree or higher grew at 6.8% annually – more than double the rate for non-Latinos.
The 2024 U.S. Latino GDP report highlights an even more impressive statistic: the number of people with a bachelor’s degree or higher education grew 3.0 times more rapidly for Latinos than non-Latinos. This educational leap is transforming the workforce landscape.
Carlos M., a son of Dominican immigrants, embodies this educational renaissance. Growing up in the Bronx, Carlos juggled part-time jobs to support his family while pursuing his studies. Today, he's a leading surgeon at a prestigious hospital. "Education was my lifeline," Carlos reflects. "It's not just about personal success; it's about lifting our entire community."
Workforce Warriors: Shaping America's Labor Landscape
As we honor our heritage this Hispanic Heritage Month, we're also celebrating our future. Hispanics have the highest labor force participation rate of any demographic group at 67.2%. From 2010 to 2022, the Latino labor force grew by 34.1% compared to 4.5% for non-Latinos. Hispanics currently compose 19% of the U.S. labor force, a figure set to grow to nearly a third by 2060.
Elena F., a union leader in Chicago, sees this firsthand. "We're not just filling jobs," she says passionately. "We're reimagining what the American workforce looks like. We bring grit, creativity, and a sense of community to every workplace we touch."
When someone asks me to share actual data demonstrating the economic impact of a diverse workforce, I say this:
Companies with above-average diversity report 38% more revenue from innovative products and services.
Companies in the top quartile for ethnic diversity on executive teams were 33% more likely to have industry-leading profitability.
A 1% increase in racial diversity similarity between upper and lower management increases firm productivity by between $729 and $1590 per employee per year.
Teams with members from diverse backgrounds have been shown to outperform homogeneous teams by 35% when making decisions, and report higher revenues.
Entrepreneurial Spirit: The Latino Business Boom
There is a strong entrepreneurial spirit within the Latino community, with Latinos establishing businesses at a faster pace than any other ethnic group in America.
Latino-owned businesses grew by 34% between 2013 and 2019, compared to just 1% for non-Latino-owned businesses. Moreover, Latina-owned businesses grew by an impressive 40% during the same period.
Take the story of Juan and Carmen V., siblings who transformed their grandmother's recipes into a renowned restaurant. "Our abuela's kitchen was our first boardroom," Juan chuckles. "Now, we're opening multiple locations. It's not just about food; it's about sharing our culture with every American household."
Consumer Power: A $3.4 Trillion Market
The Latino impact on the U.S. economy isn't just about production; it's also about consumption. With a purchasing power of $3.4 trillion, Latino consumers are reshaping market trends thanks to a rise in income of 50.1% between 2010 and 2022, outpacing the 18.6% growth of non-Latino income.
Latino household consumption grew at a compound annual growth rate of 7.0% from 2011 to 2021, compared to 4.1% for non-Latino households. This means Latino consumption grew 71% faster than non-Latino consumption over this decade and it represents a market 11 percent larger in size than the entire economy of Russia.
Sofia H., a marketing executive in Miami, explains the phenomenon: "We're young, we're digital natives, and we're fiercely loyal to brands that respect our culture. Companies are finally waking up to the power of the Latino dollar."
The Immigration Equation: A Multi-Generational Success Story
This Hispanic Heritage Month, we also celebrate the immigrant roots that fuel our economic vitality. The role of immigration in the Latino economic story cannot be overstated. First-generation immigrants bring with them a strong work ethic, diverse skills, and a drive to succeed that invigorates the U.S. economy. They often take on jobs that are essential to key industries such as agriculture, construction, and healthcare. However, it's the second and third generations that are truly transforming the economic landscape.
“U.S. Latinas coming of age and entering the U.S. labor force are overwhelmingly second- and third-generation Americans. These daughters and granddaughters of immigrants are combining the extraordinary and selfless work ethic of their elders with rapid growth of human capital to give life to the U.S. economy.” -Dr. Hayes Bautista, Ctr. for the Study of Latino Health & Culture UCLA David Geffen School of Medicine, developer of the original U.S. Latino GDP algorithm.
These later generations are more likely to pursue higher education, enter professional careers, and start businesses. They bridge cultural gaps, bringing unique perspectives that drive innovation and creativity in the workplace. The success of these second and third-generation Latinos is a powerful testament to the long-term economic benefits of immigration.
Challenges and Triumphs
This inspiring journey is not without its hurdles. The wage gap persists, with Latinos earning 73 cents for every dollar earned by non-Latino whites. Access to capital remains a challenge for many Latino entrepreneurs.
Addressing these challenges represents a significant opportunity for further economic growth. Recognizing and embracing diversity, especially from the Latino community, can benefit companies by boosting innovation, productivity, and their ability to cater to a diverse consumer base.
The economic data clearly shows that diversity, especially Latino diversity, is not just a matter of social equity but a key driver of business success and economic growth in the United States.
Angela R., a community organizer in Phoenix, embodies this determination. "Every challenge is an opportunity," she says, her voice firm with conviction. "We've faced bigger obstacles and emerged stronger. Watch us turn these hurdles into stepping stones."
A Future Rooted in the American Dream
As we reflect on our past achievements, we also look forward with optimism. The Hispanic economic growth isn't just a Latino success story – it's America's success story.
Latinos are making significant contributions to American economic life, from Wall Street to the agricultural fields of California, and from Silicon Valley startups to Main Street family businesses.
We are not just participating in the American dream; we are redefining and expanding it, making it more vibrant and inclusive than ever before.
For policymakers, business leaders, and educators, the message is clear: investing in the success of the Hispanic community is investing in the future of the American economy. By breaking down barriers to education, employment, and entrepreneurship for Latinos, we can unlock a new era of economic growth and prosperity for all Americans.
During Hispanic Heritage Month, let's celebrate not only our past but also look to the future—a future where Latino economic power benefits everyone, bringing prosperity to all parts of the nation.
Like the stories of immigrants from Ireland, England, Poland, Italy, and many other places long ago, the Latino story is just beginning. As it unfolds, it promises to make America more prosperous, dynamic, and vibrant for everyone –a true expression of the American dream, a future that is distinctly Latino, distinctly American, and incredibly bright.
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