Current discussions about Latinos and their role in the U.S. often overlook the fact that a majority are American citizens, and the fact that this community is a vital driver of the country’s economy is frequently ignored. To fully appreciate their worth in the U.S. socioeconomic landscape, we must understand who they are and how significant their contributions are to the nation’s economic growth and stability.
The Majority Are Not Immigrants
According to the American Community Survey, just over 65 million Latinos live in the U.S., which is nearly 20% of the population, making them the largest racial or ethnic minority group in the country.
A persistent stereotype is that Latinos are an immigrant population, but that is not the case. According to the Pew Research Center’s statistical portrait of U.S. Hispanics, in 2000, about 40% of Latinos living in the U.S. were born outside the country, while approximately 60% were born in the U.S. However, by 2019, the percentage of Latinos born in the U.S. had risen to 67%. This shows that the increase in the Latino population from 2000 to 2019 was primarily due to births rather than immigration.
During an interview, a Latino day laborer who declined to give his name for privacy reasons said, “Why does everyone think we are immigrants? I did not finish high school, but that is because I am not good with reading, but everyone assumes it is because I was not born here. I was, and my mother was, too.”
The Majority of Latino Immigrants Are Documented
The number of undocumented Latino immigrants is significantly smaller than many people think. According to the 2022 American Community Survey, 65% of Latino immigrants are documented. The Center for Migration Studies of New York highlights that between 2010 and 2019, the percentage of undocumented Latino immigrants has decreased, while the percentage of undocumented non-Latino immigrants has increased. They also point out that over half of undocumented Latinos reside in only five states: California, Illinois, Florida, New York, and Texas.
Latinos Speak English
Contrary to stereotype, Latinos are proficient in English. In 2022, approximately 72% of all Latinos spoke only English or spoke it proficiently, an increase from 59% in 1980. Most of the growth in English proficiency has happened since 2000, due mainly to a decline in the number of Latinos who speak Spanish at home.
During an interview, a Latina small business owner, an immigrant from Mexico who declined to give her name for privacy concerns, said, “We talk English to our kids. My kids are going to be successful. They need to read and speak like the Americans they are. They will not speak English with an accent.”
Latinos Work
The non-Latino labor force participation rate in 2023 was 61.7%, while the Latino labor force participation rate was 66.9%. Since 2003, the number of Latinos in the labor force has risen by 69%, which is ten times faster than the growth rate for non-Latinos. Another way to understand the significance of Latinos in the labor force is to consider the net labor force growth from 2003 to 2023. According to the U.S. Bureau of Labor Statistics, Latinos represent approximately two-thirds of that growth during this period.
According to the Bureau of Labor Statistics, in 2024, Latinos made up 19% of the workforce. However, these workers are disproportionately represented in low-wage occupations such as construction (35%), retail (30%), hospitality (27%), agriculture (25%), mining (23%), and daycare services (22%).
A Latino small business owner, who declined to give his name to protect his privacy, said in an interview that while he was born in the U.S., he worked as a manual laborer and owns a business that involves “back-breaking dirty work.” He talked about how college was never an option for him and how he has given his children a strong work ethic but told them they must do “clean work where they dress nice.” He says he wants his children to work hard, but he wants them to “work and live like his clients’ children.”
Currently, Latinos are underrepresented in higher-wage occupations, including professional and technical services (11%), financial investment services (8%), computer design (8%), and management of companies and enterprises (7%).
The occupational placement of Latinos helps explain their dismally low per capita income. Latino per capita income in 2023 was $28,026, approximately 49% lower than that of Asians, 43% lower than whites, and 10% lower than Blacks.
Latinos and Public Assistance Programs
Another stereotype is that so many Latinos are collecting money from public assistance programs that they are a burden to taxpayers. The data tell a different story.
According to the Center for Poverty & Inequality Research at the University of California, Davis, Latino families use public assistance programs less than other groups. For instance, only about half of eligible Latinos receive benefits from the Supplemental Nutrition Assistance Program (SNAP). Latinos are significantly underrepresented in multifamily and housing voucher programs. Furthermore, they are approximately one-third less likely to receive housing assistance compared to other racial/ethnic groups.
A statement made during an interview by a Latino who declined to give his name to protect his privacy reflects what the numbers show: “I work and earn money. I do not want a handout. I want to work.”
Macro-Economic Indicators of Latino Importance to the U.S. Economy
The significance of the Latino contributions to the American economy cannot be overstated. According to the 2024 U.S. Latino GDP Report:
“From 2010 to 2022, the average annual growth of real U.S. Latino GDP is 4.2 percent, compared to only 1.7 percent for the broader U.S. economy. From 2010 to 2022, real Latino GDP increased a total of 63.2 percent compared to only 21.9 percent for Non-Latino GDP. In other words, the U.S. Latino GDP is growing 2.9 times faster than Non-Latino GDP.”
When the report turns to the Latino contribution to consumption, the findings indicate:
“In 2022, Latino consumption stood at $2.53 trillion. In terms of domestic comparisons, Latino consumption is 5 percent larger than the entire economy of the state of Texas (2022 State GDP of $2.36 trillion) and 23 percent larger than the entire economy of New York (2022 GDP of $2.05 trillion). From 2010 to 2022, Latino real consumption grew a total of 62.4 percent, while Non-Latino consumption grew only 22.6 percent. In other words, Latino real consumption grew 2.8 times faster than Non-Latino.”
Going Forward
Policymakers and the general public must understand the true essence of the Latino population and acknowledge the crucial socioeconomic contributions Latinos make in the U.S. Additionally, there should be broad, nonpartisan backing for developing and enforcing policies that nurture, promote, and amplify these essential contributions. Enhancing socioeconomic opportunities for Latinos benefits everyone.
Read the full article here