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.
Despite the size and growth of the U.S. Latino market, this segment of the economy continues to be a big blind spot for many decision-makers in C-suite positions. Most Americans in the U.S. don’t understand the potential and current contribution of the Latino market. For instance, there is a big misconception of the narrative that involves Latinos and education, according to the President and CEO of the Hispanic Scholarship Fund, Fidel Vargas. Mr. Vargas explains, when asked “what is the ratio between Asian Americans and Latinos that go to college?” — most Americans respond it is 3 Asian Americans for every 1 Latino in college. The reality is it is 2.5 Latinos for every Asian American. The real narrative showcasing the high proportion of Latinos among college educated students presents a massive investment opportunity for companies. Do you think long-term investment decisions would change if executives better understood the value inherent in the U.S. Latino market?
In between the lines of these statistics is a clear sense of resilience among Latinos. Latinos are among the most undercapitalized and under-resourced in the U.S. For example, Latino businesses were disproportionately impacted by COVID-19 and 50%+ less likely to receive government relief under the Payment Protection Program, compared to White-owned businesses, per a report published by the Stanford Latino Entrepreneurship Initiative. Latinas have been worse off than their male counterparts, comprising less than 1% of those who receive venture capital. And yet, Latinas are the fastest growing entrepreneur demographic in the U.S. “We know that Latinas start the most companies; but imagine what they could do if they had the support, the access, the capital and the mentorship,” says Beatriz Acevedo, CEO and Co-Founder of Suma Wealth.
L’Attitude intends to shed light to the biggest blind spot of the American economy. L’Attitude was co-founded in 2018 by international business executive Sol Trujillo and NAHREP CEO Gary Acosta, and internationally acclaimed producer Emilio Estefan joined the partnership in 2019. The conference convenes Fortune 100 executives, top policymakers, and industry leaders for 4 days to discuss the U.S. Latino market opportunity, referred to as The New Mainstream Economy.
This year, Joe Biden, former Vice President and Democratic Presidential candidate, joined the conference and asserted:
“We cannot do well in America, if the Latino Community doesn’t do well.”
As evidenced by the facts and rhetoric shared at L’Attitude this year, maybe it’s possible the Latino narrative can and will change once and for all — further enabling a segment of the U.S. economy that is already a vital part of its growth.
Other noteworthy speakers at L’Arttitude 2020 included Larry Fink Chairman & CEO of BlackRock; John Donahoe, President & CEO of Nike; Hans Vestberg, Chairman and CEO of Verizon Communications; Brian Moynihan, Chairman of the Board and CEO Bank of America; Tony Vinciquerram, Chairman & CEO of Sony Pictures Entertainment; Jessica Alba, Founder of the Honest Company; Cesar Conde, Chairman of NBCUniversal News Group; Oscar Munoz, Executive Chairman of United Airlines; Maria Teresa Kumar, President and CEO of Voto Latino; Gloria Estefan, Grammy-award singer and songwriter; John Furner, President & CEO of Walmart U.S.; Xavier A. Gutierrez, President and CEO of Arizona Coyotes; and Armando Christian Pérez (a.k.a. “Pitbull”) an American rapper, singer, and entrepreneur.