Despite the inaccurate stereotypes often perpetuated against Latinx people, their impressive contributions to the economy prove outdated stigmas wrong.
A new study by California Lutheran University found that the total Gross Domestic Product (GDP) of Latinx in the U.S. in 2017 was $2.3 trillion. That means if the population were an independent country, it would be the eighth largest GDP in the world, outranking the likes of Brazil, Italy, Canada and even Russia.
The report notes that Latino GDP is remarkable not just for its size, but its growth.
“Among the ten largest GDPs in the world, the Latino GDP is the third fastest growing, and it is the single fastest growing among the fully developed economies,” the report stated. “The growth rate of the broader U.S. economy ranks sixth, well behind the Latino GDP.”
This is great news for the United States which, according to the study, is otherwise approaching an imminent demographic disaster. With the rate of retirement set to peak in 2022, the U.S. would need to add more than 300,000 jobs per month to account for resulting shortages in the labor market. Taking into consideration the anticipated monthly loss of nearly 350,000 workers due to retirement, the U.S. will need nearly 650,000 new workers each month, or 8 million new workers each year. With the U.S. confronting a dangerous shortage of workers, it is highly unlikely they will be able to fulfill that need.
Luckily, Latinx are playing a big role in rescuing the U.S. from its economic tribulations.
“Given the strong health profile, robust population growth and high Latino labor force participation detailed here, along with strong increases in educational attainment and income and personal consumption growth among Latinos, we expect that the economic growth premium that Latinos enjoy relative to Non-Latinos in the U.S. will be maintained in the years ahead,” the report stated. “Latinos currently are and will increasingly become a critical foundation of support for the new American Economy.”
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