Oct 21 2015

Latinos Have Significant Impact on U.S. Economy

But Education, Income, Wealth Lag

Related Image
WASHINGTON – A new report out Wednesday finds that conditions are ripe for young Latino Americans to improve their economic security because those born in the U.S. typically are better educated and therefore more likely to earn larger incomes than those who immigrate to the U.S.

The Joint Economic Committee (JEC), in collaboration with the Congressional Hispanic Caucus (CHC) unveiled the “The Economic State of the Latino Community in America” report focusing on the economic conditions of the largest ethnic population in the nation. In 45 years, one-third of all Americans are expected to identify as Hispanic or Latino. Currently, only 17 percent of all Americans identify as such

Because of their increasing numbers and growing purchasing power, Latinos are expected to contribute over $1.7 trillion to the economy by 2020.

Latinos already are having a powerful impact. They are 1.5 times more likely than the general population to become entrepreneurs. Their creation of new businesses outpaces the entrepreneurial efforts of everyone else and those businesses contribute almost $500 billion in economic activity each year.

Nevertheless, Latinos are twice as likely to live in poverty as non-Latino white Americans, and they lag behind non-Latino whites in education, income and wealth. Latinas face a large gender pay gap, earning just 55 cents for every dollar earned by non-Latino white men.

The Latino unemployment rate is down to 6.4 percent, less than half of its high of 13 percent over six years ago. The recovery benefitted Latinos disproportionately, with Latinos accounting for 40 percent of the job gains since 2010.

The report also found:

• Overall, Hispanic workers earn 72 percent of what non-Hispanic white workers earn.

• The median income of Hispanic households is $42,500—about $18,000 less than the median income of non-Hispanic white households.

• The median net worth of Hispanic households is approximately one-tenth that of non-Hispanic white households.

• Almost 30 percent of Latino children live in a food-insecure household.

                                                                    Read the report here

                                                                    View graphics here

                                                                                 ###

Related Files