The Latino Donor Collaborative (LDC) released its 2024 LDC U.S. Latino GDP Report, revealing the country’s remarkable economic growth of Hispanics. Their growth reached $3.6 trillion in 2022, far outpacing national averages in key sectors.
The report, sponsored by Wells Fargo and developed in collaboration with Arizona State University’s W.P. Carey School of Business, delves into Latino labor force participation, entrepreneurship, and future growth projections through 2029.
“Every year, thousands of U.S. Latino business leaders come together with a mission to learn how to use this data to influence real change, create actionable plans to engage Latino audiences and support economic policy. The 2024 LDC U.S. Hispanic GDP Report continues to be invaluable for business decision-makers motivated by data to inform their growth strategies,” remarked Sol Trujillo, Co-Founder and Chairman of the LDC and L’ATTITUDE.
The release of the new report marked the kickoff of the L’ATTITUDE 2024 Conference, which is being held at the Manchester Grand Hyatt in San Diego from September 12 to 15.
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L’ATTITUDE is the largest business event in the country. It is focused on “The New Mainstream Economy,” helping executives and business leaders understand the U.S. Latino cohort, drive its growth and stay abreast of the latest economic trends and opportunities.
The conference was created to promote facts and data to catalyze economic growth opportunities for all Americans in the 21st century.
Highlights: U.S. Latino Economic Growth
- Now valued at $3.6 trillion with an annual average real growth rate of 4.6%, the U.S. Latino GDP is the second-fastest growing among the world’s ten largest economies, trailing only China and outpacing countries like India, France, Canada, and even the rest of the United States.
- U.S. Latino GDP is projected to rank as the world’s fourth largest by 2029, surpassing Japan by the end of 2024 and Germany by 2027.
- Despite comprising 19.5% of the U.S. population, the U.S. Hispanic cohort was responsible for 28.3% of total additions to national GDP between 2017 and 2022.
- The ten largest state Latino economies, including California, Texas, Florida, and New York, are all growing faster than non-Latino counterparts.
- U.S. Hispanic purchasing power is measured at $3.78 trillion.
- Latino income in the U.S. grew to $2.83 trillion in 2022 and increased 4.8% annually between 2017 and 2022.
“The 2024 LDC U.S. Latino GDP Report offers a trove of valuable new data and deeper insights that highlight this cohort’s undeniable economic strength,” said Ana Valdez, CEO and President of the LDC. “Their youth, productivity, educational attainment, and labor force participation are unmatched, directly correlating to our nation’s economic success. Even in volatile economic times, U.S. Latino contributions are indispensable, and this cohort deserves and demands recognition.”
This is the second year of a five-year collaborative research partnership between the LDC and Arizona State University.
Additional Highlights
Key Industry Sectors
- Manufacturing accounted for the highest share of U.S. Latino GDP in 2022 at $457.4 billion, growing 48.4% compared to a 0.8% decrease in national GDP share.
- Several other sectors contributed significantly to the U.S. Hispanic GDP share, including:
- Retail Trade: $270.3 billion (14.1% U.S. Latino growth vs. 8.9% national growth).
- Real Estate and Rental and Leasing: $265.9 billion.
- Construction: $250.3 billion.
- Health Care and Social Assistance: $250.1 billion.
Labor Force and Population Growth
- Between 2021 and 2022, the U.S. Hispanic population increased by 1.65%, while non-Latinos grew by just 0.08%.
- Includes an increase of 725,000 working-age individuals, compared to the cumulative loss of 673,000 non-Latino working-age individuals.
- In 2022, over 68% of U.S. Latinos participated in the U.S. labor force, compared to 62% of non-Latinos.
Entrepreneurship and Latino-Owned Businesses (LOBs)
- In 2021, U.S. Hispanics owned 5.1 million of the 34.4 total employer and non-employer businesses in the United States.
Educational Attainment
- Between 2021 and 2022, the growth rate for Latinos with bachelor’s degrees was 2.8 times faster than the rate for non-Latinos and two times faster for graduate degrees.
- Between 2010 and 2022, the percentage of U.S. Latinos holding at least a bachelor’s degree increased from 8.9% to 13.6%.
“Wells Fargo has been proud to support the LDC since it first launched this groundbreaking series seven years ago. The 2024 data reinforces the essential role of the U.S. Latino community in shaping the future of our economy,” said Patty Juarez, Executive Vice President and Head of Hispanic & Latino Affairs at Wells Fargo. “Every year, it becomes increasingly clear that this report is a vital tool that can guide businesses and policymakers willing to use it to the fullest extent to inform their work in growing our nation’s economy.”