Key Takeaways:
– Latina women’s economic contribution grew 51.1% between 2010 and 2021
– Their total output in 2021 exceeded that of the entire state of Florida
– Educators opine actual contributions could be higher due to unmeasured economic activities by Latinas
U.S. Latinas Drive Economical Growth
A group of women in the U.S. is making a noteworthy economic impact. According to a recent Bank of America report, U.S. Latinas were pivotal in adding $1.3 trillion to the economy in 2021. This figure represents a surge from the $661 billion in 2010. Translating this impressive climb, Latina women registered a real GDP growth rate of 51.1%.
Outpacing the Rest
Indeed, Latinas’ economical contribution exceeds that of the non-Hispanic population by 2.7 times during 2010-2021. Furthermore, the analysis revealed if this output were a state economy; its 2021 output would outpace Florida.
More than Meets the Eye
St. Mary’s University’s Associate Economics Professor Belinda Román suggests that Latinas’ actual contributions might be significantly higher. Certain unmeasured activities, such as unpaid child care, massively contribute to the economy but often go unnoticed.
Likewise, economist Mónica García-Pérez from Fayetteville State University shares this sentiment. According to her, unmeasured activities like at-home care for neighbors’ children enable other demographics to take part in the labor market. She also mentions Latina’s extensive presence in sectors with high mobility and turnover, contributing less visible but significant value.
Responding to Crisis Circumstances
When crisis hits, the important economic role Latinas play becomes even more visible. One case in point is the Covid-19 pandemic. Sudden job loss rates during a recession are typically higher for Latinas owing to their heavy involvement in health care, retail, and hospitality. Yet, due to the lower barriers of entry in these sectors, Latinas also show strong resilience by returning to work faster.
Latina’s Growing Influence in Labor Force
Between 2000 to 2021, Latinas’ rate of labor force participation spiked 7.5 percentage points. During the same period, non-Hispanic women’s participation remained stagnant. Hispanic men and women maintained positive growth even as overall labor force growth slowed in 2020. In contrast, the non-Latino labor force experienced negative growth, implying more workforce exits than entries.
Even in GDP growth, Latina women overshadowed non-Latino GDP, registering growth of 7.7% against 1.5%, respectively. At the same time, Hispanic men outpaced non-Latino GDP growth four times over, scoring a GDP growth rate of 5.9%.
Consistent Expansion despite Challenges
A gradual rise in Latina employment has been observed since the late seventies. From a 41.6% employment-to-population ratio in 1978, Latinas boasted a 56% ratio by 2023. Experts attribute this growth to an expansion of opportunities for women and the necessity to work harder due to lack of wage growth.
Furthermore, Latina’s improving labor force participation and educational attainment are driving income gains for the demographic, attributing about 2.5 times those of non-Hispanic women.
Direction of Change
Studies highlight the role of fast population growth among Hispanic women, as well as generational shifts, as major drivers of the change. Younger generations are filling the gap as the first-generation immigrants retire, bringing improved skills and larger numbers to the labor force.
The focus on U.S. Latinas’ economic contributions is expected to grow, given the trend. It is undeniable that Latinas will play an increasingly crucial role in the U.S. economy.