SUMMARY
- U.S. Latino economy surges to $3.2 trillion in 2021, outgrowing many global economies.
- Significant Latino economic footprints in states like California, Texas, and Florida.
- Despite rapid growth, the wage gap persists with Latinos earning 80 cents to a non-Hispanic dollar.
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The booming Latino economy in the U.S. has become the talk of the financial town, with a staggering growth to $3.2 trillion in 2023 from $2.8 trillion the previous year. This exhilarating rise, brought to light by the Latino Donor Collaborative's recent report in collaboration with Wells Fargo, showcases an economic rate two and a half times faster than its non-Latino counterpart over the past decade. To put that in perspective, if we considered the Latino economy as a stand-alone nation, it would comfortably sit as the world's fifth-largest economy. Quite impressive, isn't it?
Sol Trujillo, the chairman of Latino Donor Collaborative, shed light on this meteoric rise in an interview, emphasizing that there's a huge, thriving Latino economy waiting for more investment and engagement. It's interesting to note that this community has been powerhouses in industries like accommodation, food services, construction, administrative support, and transportation, to name a few.
Geographically, the Latino community has spread its economic wings across the U.S., but states like California, Texas, and Florida have particularly benefited, with economic impacts of $682 billion, $465 billion, and $240 billion, respectively. The driving force behind this growth is the community's strong population share, labor force participation, and commendable productivity.
However, it's not just about the big states. There's an unexpected buzz in emerging Latino markets. South Dakota, for instance, saw an 11.8% annual growth rate in Latino economic impact in 2021, slightly outpacing its neighboring North Dakota. Such significant shifts are crucial for businesses operating in these areas to remain updated and cater to an evolving clientele.
Yet, it's essential to address the elephant in the room. Even with this rapid economic growth and increased Latino wages, a considerable wage gap remains. The average Latino worker still earns 80 cents to every dollar earned by a white non-Hispanic employee. However, the community's purchasing power has shown strength, reaching $3.4 trillion in 2023 and growing faster than non-Latino counterparts. As Trujillo points out, this group is only set to grow, offering vast potential for those willing to invest and tap into it.
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