Inaugural U.S. Latina GDP Report Finds Latinas Contribute $1.3 Trillion in GDP

Rhea-AI Summary

The inaugural U.S. Latina GDP Report, funded by Bank of America (NYSE: BAC), reveals that Hispanic women in the U.S. contributed $1.3 trillion to the GDP in 2021, representing over 50% growth in a decade. Key findings include:

1. U.S. Latina GDP grew 2.7 times faster than non-Hispanic GDP from 2010 to 2021.
2. Latinas are responsible for 30.2% of U.S. labor force growth since 2010.
3. Latina educational attainment is growing 2.7 times faster than non-Hispanic females.
4. Latina real income growth is 2.5 times that of non-Hispanic female counterparts.

The report highlights Latinas as a driving force in the U.S. economy, outpacing their gender and ethnic peers in key economic measures.

Positive

• U.S. Latina GDP contribution of $1.3 trillion in 2021, larger than Florida's economy
• 51.1% growth in U.S. Latina GDP from 2010 to 2021, 2.7 times faster than non-Hispanic GDP
• 32.9% growth in Hispanic female labor force from 2010 to 2021
• 103% increase in Latinas with bachelor's degree or higher from 2010 to 2021
• 46% growth in real incomes of U.S. Latinas from 2010 to 2021, 2.5 times that of non-Hispanic females

Negative

• None.

Insights

Economic Analyst

The inaugural U.S. Latina GDP Report reveals a significant economic impact, with Latinas contributing $1.3 trillion to the U.S. GDP in 2021. This figure represents over 50% growth in a decade, outpacing the overall economy. Key findings include:

• Latina GDP grew 2.7 times faster than non-Hispanic GDP from 2010 to 2021.
• Latinas account for 30.2% of U.S. labor force growth since 2010, despite being only 9.3% of the population.
• Educational attainment among Latinas increased 103% between 2010 and 2021, 2.7 times faster than non-Hispanic females.

These trends indicate a rapidly growing economic powerhouse within the U.S. economy, with potential long-term implications for workforce dynamics, consumer markets and economic growth strategies.

Demographic Trends Analyst

The report highlights a demographic shift with significant economic implications. Second- and third-generation Latinas are entering the workforce with higher education levels and stronger economic contributions than previous generations. This trend suggests:

• A cultural evolution combining immigrant work ethic with increased access to education and opportunities.
• Potential for long-term economic benefits as this demographic continues to grow and integrate into higher-skilled sectors.
• Challenges for businesses and policymakers to adapt to and leverage this growing economic force.

The 7.5% increase in Latina labor force participation since 2000, compared to flat rates for non-Hispanic females, indicates a shifting landscape in workforce composition and potential changes in consumer behavior and market dynamics.

Financial Sector Analyst

Bank of America's funding of this research signals the financial sector's recognition of Latinas as a key economic driver. This has several implications:

• Increased focus on tailored financial products and services for this demographic.
• Potential for more targeted investment strategies in sectors benefiting from Latina economic growth.
• Opportunities for wealth management services as Latina incomes grow 46% from 2010 to 2021, 2.5 times faster than non-Hispanic females.

The financial sector may need to reassess risk models and growth projections to account for this rapidly expanding economic segment. Investors should consider the potential impact on consumer-focused companies, education sector and industries with high Latina workforce participation when evaluating long-term market trends.

Dando vida a la Economía: Giving Life to the U.S. Economy
U.S. Latina GDP Report Indicates Tremendous Growth and Key Drivers

LOS ANGELES, Aug. 26, 2024 /PRNewswire/ -- New data from leading researchers indicates that female Hispanics in the U.S. have contributed $1.3 trillion in 2021 to the gross domestic product (GDP), representing over 50% growth in a decade. The U.S. Latina GDP Report, funded by Bank of America, is first of its kind research on the significant and rapidly growing economic contribution of the nation's Hispanic female population. Led by professors Matthew Fienup, Ph.D., California Lutheran University, and David Hayes-Bautista, Ph. D, UCLA Geffen School of Medicine, the Latina GDP report found that U.S. Latina GDP grew at 2.7 times the rate of the GDP of Non-Hispanics between 2010 to 2021. Today, the Latina GDP is larger than the entire economy of the state of Florida. 

"This exciting body of work captures the positive growth and contributions that U.S. Latinas from multiple generations have been making to the U.S. economy, and confirms that Latinas are a driving force. We see similar momentum reflected in our overall business as well as many of the same key drivers found in our own research," said Jennifer Auerbach-Rodriguez, Strategic Growth Markets & Client Development Executive, Merrill Wealth Management.

"Following notable reports on U.S. and Metro Area Latino GDP, this new report provides much needed attention to the extraordinary contributions of U.S. Latinas. This research reveals that Latinas outpace their gender and ethnic peers in key economic measures, including record levels of Latina workforce participation, educational attainment, and income growth. It reveals that Latinas are drivers of much-needed economic vitality for the nation," said Dr. Fienup.

The key findings in the U.S. Latina GDP Report include:

• Economic Output
  • The total economic output of U.S. Latinas is $1.3 trillion in 2021, up from $661 billion in 2010, and larger than the economies of all other states except California, Texas and New York.
  • From 2010 to 2021 real U.S. Latina GDP increased a total of 51.1% compared to only 18.8% for non-Hispanic GDP. In other words, the GDP of U.S. Latinas is growing 2.7 times faster.
• Labor Force Participation
  • From 2010 to 2021, the number of Hispanic females in the U.S. labor force grew a total of 32.9% compared to only 2.7 percent for non-Hispanic females. Despite being just 9.3% of the U.S. population, Latinas are responsible for 30.2% of the growth of the U.S. labor force since 2010.
  • From 2000 to 2021, the Latina labor force participation rate increased 7.5 percentage points, while the rate for non-Hispanic females was flat. U.S. Latinas, who started the century with a participation rate a full 5.0 percentage points lower, are now 2.5 percentage points more likely to be actively working than their non-Hispanic female counterparts.
• Educational Attainment
  • The number of Latinas with a bachelor's degree or higher education increased 103% between 2010 and 2021, while the number of highly-educated non-Hispanic females increased only 38.3%. Latina educational attainment is growing 2.7 times faster than that of non-Hispanic females.
• Real Income
  • From 2010 to 2021, the real incomes of U.S. Latinas grew a total of 46.0 percent compared to only 18.5 percent for Non-Hispanic females. In other words, Latina income growth is 2.5 times that of their Non-Hispanic female counterparts.

"U.S. Latinas coming of age and entering the U.S. labor force are overwhelmingly second- and third-generation Americans. These daughters and granddaughters of immigrants are combining the extraordinary and selfless work ethic of their elders with rapid growth of human capital to give life to the U.S. economy," said Dr. Hayes Bautista.

This data builds directly upon six annual U.S. Latino GDP Reports as well as eight State and a dozen Metro Area Latino GDP Reports released since 2018. Using publicly available data from major U.S. agencies, those reports reveal that Latinos are drivers of economic growth and a critical source of resilience for broader U.S. economy. They document substantial economic growth premiums enjoyed by Latinos of all genders, relative to non-Latinos in the U.S.

For example, labor force growth of male and female Hispanics in the U.S. is nine times the growth of the non-Hispanic labor force. Real Latino GDP growth is 2.5 times the growth of non-Latino GDP. These premiums exist across a wide range of economic indicators – labor force participation, educational attainment, real income, consumption, and more.

To download the full report, please visit:  www.LatinaGDP.us 

The U.S. Latina GDP Report is produced by the Latino GDP Project, a project of Community Partners (www.CommunityPartners.org) with the Center for Economic Research & Forecasting at California Lutheran University (www.clucerf.org) and the Center for the Study of Latino Health & Culture at UCLA (www.uclahealth.org/ceslac). For questions about the report, please contact: Matthew Fienup, Chief Economist (mfienup@callutheran.edu); and David Hayes-Bautista, Chief Demographer (dhayesb@ucla.edu).

Center for Economic Research & Forecasting (CERF)

CERF is a nationally recognized economic forecasting center, which provides county, state and national economic forecasts and custom economic analysis for government, business and nonprofit organizations. CERF economists Matthew Fienup and Dan Hamilton are members of the Wall Street Journal Economic Forecasting Survey, the National Association of Business Economics (NABE) Economic Outlook Survey, and the Zillow Home Price Expectations Survey (formerly, the Case-Shiller Home Price Expectations Survey). CERF was awarded 2019, 2020 and 2021 Crystal Ball Awards for the Zillow Home Price Expectations Survey. CERF's U.S. home price forecast received multiple top-3 rankings among more than 100 forecasts included in the survey. CERF is housed at California Lutheran University, a federally designated Hispanic Serving Institution.

Center for the Study of Latino Health & Culture (CESLAC)

Since 1992, CESLAC has provided cutting-edge research, education and public information about Latinos, their health and their impact on California's economy and society. Part of the UCLA Geffen School of Medicine, CESLAC is a resource for community members, business leaders and policy makers who want to gain insightful research and information about Latinos. It offers unparalleled insight into Latino issues through an approach that combines cultural research, demographic trends and historical perspective. In addition, it has helped the University of California meet its public service goal by increasing the effectiveness of their outreach to the Latino community.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:

Carla Molina, Bank of America
Phone: 1.512.397.2402
carla.molina@bofa.com

Barbra Ramos, UCLA Strategic Communications
Phone: 1.310.844.3582
bramos@stratcomm.ucla.edu

Tom Hoener, California Lutheran University
Phone: 1.805.493.3890

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SOURCE Bank of America Corporation

FAQ

What is the total economic output of U.S. Latinas in 2021 according to the report?

According to the U.S. Latina GDP Report, the total economic output of U.S. Latinas in 2021 was $1.3 trillion, up from $661 billion in 2010.

How does the growth of U.S. Latina GDP compare to non-Hispanic GDP between 2010 and 2021?

The U.S. Latina GDP grew 2.7 times faster than non-Hispanic GDP. Specifically, U.S. Latina GDP increased by 51.1% compared to 18.8% for non-Hispanic GDP between 2010 and 2021.

What percentage of U.S. labor force growth are Latinas responsible for since 2010?

Despite being just 9.3% of the U.S. population, Latinas are responsible for 30.2% of the growth of the U.S. labor force since 2010.

How does the educational attainment growth of Latinas compare to non-Hispanic females?

The number of Latinas with a bachelor's degree or higher increased 103% between 2010 and 2021, growing 2.7 times faster than that of non-Hispanic females, which increased by 38.3%.

What is Bank of America's (BAC) role in the U.S. Latina GDP Report?

Bank of America (NYSE: BAC) funded the U.S. Latina GDP Report, which is the first of its kind research on the economic contribution of the nation's Hispanic female population.