Latina GDP rockets despite wage disparity, report shows
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Latinas celebrate Mexican Independence Day. Photo: Andrew Lichtenstein/Corbis via Getty Images
The total economic output of U.S. Latinas has grown by more than 51% since 2010 and is now larger than all but three states, per a new report.
Why it matters: Despite facing significant economic disparities, Latinas are a driving force in the U.S. economy.
- Latinas make only 51 cents compared to every dollar that white, non-Hispanic men earn, and they lose nearly $1.3 million over a 40-year career due to the wage gap.
The big picture: Altogether, U.S. Latinos saw their GDP reach $3.6 trillion in 2022, growing faster than most wealthy global economies.
- If U.S. Hispanics were an independent country, they'd have the fifth largest economy in the world for the second consecutive year.
- A new report from Bank of America, in partnership with UCLA and California Lutheran University, attributes the rise in Latino GDP mainly to the economic output of Latinas.
By the numbers: The 2021 U.S. Latina GDP was $1.3 trillion, up from $661 billion in 2010, and about 5.6% of the overall U.S. GDP, the analysis of the latest available data determined.
- The total economic output of Hispanic women in 2021 was larger than the entire economy of the state of Florida. Only the GDPs of California, Texas and New York are larger than the U.S. Latina GDP, per the report.
- From 2010 to 2021, the real GDP of Latinas grew at 1.2 times the rate of Hispanic men's GDP and at 2.7 times the rate of the non-Hispanic GDP.
What they're saying: "Latinas are just a force to reckon with," Raquel González, president of Bank of America Silicon Valley, tells Axios.
- González says the Latina GDP is primarily driven by consumption, reflecting their strong spending power despite not earning as much as their male counterparts.
- "But the population of Latina is growing roughly six times faster than the non-Hispanic population in the U.S. They also are entering the labor force at unprecedented rates."
Yes, but: Latinas stand to lose $2,672 every month, or $32,070 every year, because of wage disparity, according to the National Women's Law Center.
- These lost wages could have paid for a full year's rent and rob Latinas of the opportunity to invest in education, homeownership and retirement, the center says.
Zoom out: New Mexico State Treasurer Laura Montoya, the nation's first Latina elected state treasurer, tells Axios this wage disparity hurts New Mexico, which has the highest percentage of Latino residents in the nation.
- That disparity is a crucial factor in the state's high poverty rate, but news of the Latina GDP growth shows that New Mexico could boom if the right resources are in place, Montoya says.
- She says the state needs more financial literacy and to push to get Latinos to talk openly about financial health, from retirement to investing in stocks.
The bottom line: The rising Latina GDP is an underreported potential boost to the U.S. economy that could spark even more expansion.
