Latinas significantly contribute to the U.S. economy, as highlighted in a recent report funded by Bank of America. In 2021, the female Hispanic population added $1.3 trillion to the gross domestic product (GDP), up from $661 billion in 2010. This marks a real GDP growth rate of 51.1% between 2010 and 2021, which is 2.7 times the contribution of the non-Hispanic population.
The total economic output of U.S. Latinas in 2021 exceeded that of the entire state of Florida, with only California, Texas, and New York showing larger outputs that year, according to data from the Bureau of Economic Analysis.
Some economists believe that this contribution might be underreported. Belinda Román, an associate economics professor at St. Mary’s University, suggested that certain activities, such as child care, might not be fully captured in the data. According to Román, much of this work is uncompensated and, therefore, not reflected in the GDP figures.
Economist Mónica García-Pérez of Fayetteville State University echoed this sentiment, indicating that Latinas’ unmeasured contributions, such as stay-at-home mothers providing care for neighbors’ children, enable other groups to participate in the labor market. She also pointed out that the occupational sectors where Latinas are predominantly employed, such as care and service industries, contribute to their economic sensitivity and mobility.
García-Pérez stated that during economic downturns, such as the Covid-19 pandemic, Latinas are more likely to lose their jobs quickly due to their concentration in vulnerable sectors. However, they also tend to re-enter the market more quickly due to lower barriers to entry in these sectors.
Labor force participation among Latinas has seen significant growth. From 2000 to 2021, their participation rate increased by 7.5 percentage points, while the rate for non-Hispanic women remained flat. During the pandemic, while the overall labor force growth slowed, Hispanic men and women continued to show positive growth rates, unlike the non-Latino labor force.
Between 2019 and 2021, Latina GDP grew at 7.7%, compared to 1.5% for non-Latino GDP. This uptrend is noteworthy, considering the severe impact of the pandemic on Latino households.
Matthew Fienup, co-author of the Bank of America report and executive director of the Center for Economic Research and Forecasting at California Lutheran University, emphasized that Latinas provide essential economic vitality, especially during times of broad economic need. Co-author David Hayes-Bautista noted that the resilience seen during the Covid-19 pandemic suggests continued growth for this group.
Since the late 1970s, Latinas have seen an increase in their employment-to-population ratio, rising from 41.6% in December 1978 to 56% in December 2023, according to the Economic Policy Institute. This growth exceeds that witnessed by other demographic groups, partly due to expanded opportunities for women and the necessity of contributing more work hours due to stagnant wage growth.
There has been an increase in educational attainment among Latinas, leading to significant income gains, with growth in personal income being about 2.5 times that of non-Hispanic women from 2010 to 2021.
David Hayes-Bautista highlighted intergenerational shifts as another driver of Latinas’ economic output. The immigrant first-generation is aging out of the labor force, being replaced by their more numerous and better-educated daughters and granddaughters.
Latinas have also contributed significantly to the overall Latino economic impact, with their increasing numbers and higher levels of human capital pushing positive labor force growth in various regions, according to Fienup. This trend is expected to play an increasingly important role in the U.S. economy over the next three decades.
