Latinas are a powerhouse in the US economy. According to a 2021 Bank of America report, they added $1.3 trillion to the nation’s GDP. That’s more than double what they added in 2010, which was $661 billion. The growth of Latinas’ economic impact is part of a broader trend of resilience, hard work and unrealized potential in the Hispanic community.
Latinas’ Output: Bigger than Some States
The numbers are huge. In 2021, Latinas’ output was bigger than the entire state of Florida, bigger than most US states. Only California, Texas and New York produced more GDP that year. The growth in Latina-driven economic activity was a real 51% between 2010 and 2021, 2.7 times faster than the non-Hispanic population.
Why the Numbers Could Be Even Bigger
Despite these big numbers, many economists believe the numbers don’t capture the full impact of Latinas on the economy. A big chunk of their work, particularly in caregiving roles, is unpaid and uncounted. For example, many Latinas provide childcare, often for neighbors or extended family, a service that allows others to participate in the labor market. That unpaid work may not be counted in GDP numbers but it’s part of the overall economy.
Professor Belinda Román from St. Mary’s University notes the data gap, pointing out that a lot of the caregiving done by Latinas is not counted in the official numbers. Professor Mónica García-Pérez from Fayetteville State University mentions the challenges Latinas face in certain industries like retail and hospitality where there’s high mobility and turnover making it hard to measure their full economic impact.
Resilience in the Face of Adversity
Latinas’ resilience in the workforce is another key part of their economic contribution. Between 2000 and 2021, Latinas’ labor force participation increased 7.5 percentage points, more than non-Hispanic women whose participation was flat during the same period. This resilience was evident during the COVID-19 pandemic where the labor force growth rate for Hispanic women and men was positive even as others were declining.
Latinas work in industries like healthcare, retail and hospitality which can make them more susceptible to economic shocks. But those same industries have lower barriers to re-entry so Latinas can bounce back quickly after a downturn. Their flexibility has been key to labor force growth and keeping certain industries afloat during tough times.
A Growing Force for the Future
Looking ahead, Latinas will be a bigger force in the US economy. Demographic trends show younger generations of Latinas are entering the workforce in greater numbers and with more education than their predecessors. As those younger women fill the roles left by older generations, their impact will grow, both in size and significance.
David Hayes-Bautista, Director of the Center for the Study of Latino Health and Culture at UCLA, says this generational shift is already happening. He notes as the first-generation immigrant workforce ages out, their daughters and granddaughters, who are more educated and more numerous, are stepping in, bringing human capital.
The Path Forward
The $1.3 trillion of Latinas in the US economy is just the beginning. As Latinas grow in the labor market and overcome barriers, their economic impact will only get bigger. With more opportunities, more education and the resilience they’ve shown, Latinas aren’t just in the economy — they’re driving it.
Luyanda is a digital marketing & SEO professional. She is a part of the Minority Business Review digital marketing team. She is a Boston Media House Graduate who obtained a Diploma in Media Practice majoring in Digital Marketing.