Latinas are drivers of the US economy, new report finds

Latinas injected 1.3 trillion dollars into the US GDP in 2021, a new report found. The investigation used demographic and economic data from American public agencies.

Bank of America funded the report, conducted by professors at California Lutheran University and UCLA. It supplements six previous investigations.

According to AP News, Latinas contributed to the US economy as much as Florida's GDP and only below California, Texas, and New York.

The report also showed rapid economic growth among Latinos in general. Their contribution was $661 billion in 2010, a rate nearly triple that of the other demographics.

According to the authors' press release, Latinas outpace their gender and ethnic peers in labor participation, education attainment, and income growth. Latino labor force grows nine times faster than other demographics.

Economist Matthew Fienup, one of the study's authors, told AP News the data shows that "Latinas are drivers of economic vitality in the United States, giving life to the US economy."

Mr. Fienup also said that the report showed the country is "moving in the right direction" and "closing the wage gap" despite Latinas facing some disadvantages relative to other demographics.

According to AP News, the improvement in women's wage gap has stalled for about 20 years in the US. Black and Latina workers experience the most significant pay gap of any group.

Still, Mr. Fienup explained that Latinas are investing more toward starting businesses and homeownership than other groups despite having less access to capital.

There are many factors behind the fast-paced economic growth Latinas have experienced in the last decade, David Hayes-Bautista, a report co-author, explained to AP News.

As older immigrant Latinas age out of the workforce, their more educated and bilingual daughters are taking their place. Their higher preparation is creating a slingshot effect, he said.

"These daughters and granddaughters of immigrants are combining the extraordinary and selfless work ethic of their elders with the rapid growth of human capital," Mr. Hayes-Bautista told AP News.

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