Latinas contribute $1.3 trillion to US GDP
Latinas play in economic development.
A $1.3 Trillion Contribution to the US Economy
According to the report, the 2021 U.S. Latina GDP reached $1.3 trillion, a staggering increase from $661 billion in 2010. This places the economic output of Hispanic women ahead of the entire economy of Florida, making it larger than all but three states—california, Texas, and New York. The Latina GDP has grown at an average annual rate of 3.8% from 2010 to 2021, a pace signigcantly faster than the broader U.S. economy.
As is often the case in immigrant populations, each subsequent generation tends to achieve greater levels of education and access to better paying jobs.
“U.S. Latinas coming of age and entering the U.S. labor force are overwhelmingly second- and third-generation Americans,” said Dr. Hayes Bautista, a UCLA Geffen School of Medicine professor who co-authored the report. “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.”
Education and Workforce Participation as Key Drivers
The rapid growth of the Latina GDP is largely attributed to signigcant advancements in education and workforce participation. Between 2010 and 2021, the number of Hispanic women with a bachelor’s degree more than doubled, increasing by 103%. This far outpaces the 38.3% growth rate seen among non-hispanic women. As educational attainment surged, so did labor force participation. From 2010 to 2021, the Latina labor force grew by 32.9%, a rate 12.3 times that of non-hispanic women.
These gains in education and labor force participation have translated into substantial income growth. Over the same period, the real income of Hispanic women grew by 46%, compared to just 18.5% for non-hispanic women. This impressive growth has helped drive the overall U.S. economy, demonstrating the vital role that
Resilience During the COVID-19 Pandemic
The report also sheds light on the resilience of Hispanic women during the COVID-19 pandemic. Despite being among the hardest-hit groups in terms of health outcomes, Latinas continued to drive economic activity. From the pre-pandemic peak to 2021, the real GDP of Hispanic women grew by 7.7%, far outpacing the 1.5% growth of the non-hispanic GDP. Additionally, the real wage and salary income of Latinas increased by 9.3% during the Grst two years of the pandemic, while nonhispanic income declined by 1.7%.
This resilience underscores the critical role that Hispanic women play in sustaining and propelling the U.S. economy, even in times of crisis. The report emphasizes that the efforts of Latinas during the pandemic "gave life to the U.S. economy at a time of desperate need."
But despite improvements to Latina salaries, this group remains hugely underpaid. According to UCLA’S Latino Policy and Politics Institute (LPPI), “Nationally, Latinas working full-time year-round, on average, face a wage gap of 57 cents to every dollar paid to nonhispanic white men. When looking at all Latina earners (including full-time year-round, part-time, and seasonal workers), the wage gap widens to 52 cents.”
As the Latina GDP continues to grow at a remarkable pace, the report suggests that Hispanic women will remain central to the nation's economic vitality. The investments they are making in education and their increasing participation in the labor force are expected to drive further economic growth, ensuring that Latinas will continue to be a critical source of strength and resilience for the U.S. economy.
The report concludes that the contributions of U.S. Latinas are not just signigcant—they are indispensable. By driving economic growth, increasing labor force participation, and achieving rapid gains in education and income, Latinas are not only improving their own economic outcomes but also giving life to the broader U.S. economy. (La Semana)