The $2.6 Trillion U.S. Latino Market: The Largest And Fastest Growing Blindspot Of The American EconomySeptember 27, 2020
The U.S. Latino market is “growing GDP at 8.6%, faster than China, faster than India, and nobody talks about it,” said Sol Trujillo, Co-Founder of L’Attitude, to a panel of world renowned journalists and economists.
Per the recently published 2020 LDC U.S. Latino GDP Report, the size of the U.S. Latino market measured by GDP was $2.6 Trillion in 2018, up almost 9% from $2.3 Trillion in 2017. If the U.S. Latino market was its own country, it would be the 8th largest economy in the world and the largest Latino market in the world, larger than Brazil and more than twice the size of Mexico. When compared to the non-Latino U.S. cohort, the Latino cohort grew 4.5 times faster in terms of GDP, implying most of the U.S. growth came from the Latino population. Put another way, had it not been for strong growth in the U.S. Latino market, the U.S. economy would have likely contracted between 2017 and 2018.
Driving growth in the U.S. economy is a young and educated Latino labor force. Latino employees entering the labor force offset declines from the outgoing Baby Boomers. Latino Donor Collaborative reports Latinos were responsible for 78% of the net new jobs in the labor force since the Great Recession. Furthermore, Latino household growth was 23.2% in 2010-18, compared to 3.8% for that of non-Latino households. Given the higher population growth of Latinos relative to non-Latino demographics, this demonstrates how important Latinos are, not only today, but also in the future growth of the economy.