Latinos were key in sustaining the U.S. economy during and after the pandemic

At a time when Latino migrants are facing increasing vulnerability in the United States due to President Trump's immigration policies, an academic report highlights their essential role in the country's economy.

Far from being an economic burden, the Latin population has been one of the main drivers of economic growth in the United States over the last decade, particularly during and after the COVID-19 pandemic.

This is indicated by a report published in September 2024 by the Center for the Study of Latino Health and Culture at UCLA and the Center for Economic Research and Forecasting at California Lutheran University.

The study revealed that the Latino Gross Domestic Product (GDP) in the United States reached $3.7 trillion in 2022, making it — if it were an independent economy — the fifth largest in the world, surpassing powers such as India, the United Kingdom, and France.

The report also highlights that, between 2019 and 2022, years marked by the pandemic, Latin America's GDP grew at an average rate of 4.8% per year, compared to 1.5% for the U.S. economy as a whole.

During that period, Latinos accounted for 41.4% of the country's real GDP growth, even though they make up only 19.2% of the national population.

"When COVID-19 struck, many analysts predicted that the economic gains of Latinos would be erased," explained David Hayes-Bautista, a professor of medicine at UCLA and co-author of the report, who added: "But the Latino GDP in the United States has continued to grow."

Since 2010, the Latin American GDP has maintained a steady growth. That year, it was at 1.6 trillion dollars, a figure that rose to 2.8 trillion in 2019 and surpassed 3 trillion for the first time in 2021, even amidst the global health crisis.

This evolution places Latin America's GDP as the third fastest-growing among the world's top 10 economies in the last 12 years, behind only China and India.

A resilient impact, despite the effects of COVID-19

Although the Latino community was severely impacted by the pandemic —COVID-19 was the leading cause of death among Latinos from 2020 to 2021— its recovery in terms of health and economy has been remarkable.

The report indicates that the COVID-19 mortality rate among Latinos decreased by over 50% in 2022, and although it remained slightly higher than that of non-Hispanic whites, the rates for other chronic diseases were significantly lower, contributing to the return of the so-called "Latino health advantage."

This advantage is reflected in life expectancy: in 2019, Latinos lived on average three years longer than non-Hispanic whites.

During the pandemic, that gap was reduced to just six months, but in 2022 it increased again to 2.5 years, according to the report.

"Just last spring, a study announced the disappearance of the Latino health advantage," noted Hayes-Bautista.

"But our latest report highlights the return of that advantage as one of the factors driving Latin America's GDP growth," he emphasized.

A sustained and increasingly visible effort

Researchers attribute this performance to factors such as constant work, family resilience, and the strong labor presence of Latinos in essential sectors, even during lockdowns.

Their involvement in areas such as construction, services, health, transportation, and agriculture was crucial in preventing the country from coming to a complete standstill.

"We believe that the economic data published in the Latin GDP report for the United States illustrates how vital Latin strength and resilience are to the national economy," said Matthew Fienup, director of the Economic Forecasting Center at Cal Lutheran and co-author of the report.

In addition to the national analysis, the Latino GDP Project publishes regional reports throughout the year that delve into the economic impact of Latinos in specific states and metropolitan areas.

In 2024, a report dedicated to the GDP of Latina women was presented for the first time, published on International Women's Day, highlighting their increasing role in the workforce and the country's economy.

“Hard work, self-sufficiency, optimism, and perseverance are the characteristics that explain the strength and resilience of Latinos in the United States,” Fienup concluded.

"These same qualities will continue to drive the nation's economic growth in the coming years," he added.

That same study also emphasized that for the first time in the history of the United States, one in five residents is of Latino origin.

However, in March, President Donald Trump celebrated that wage gains for workers born in the United States surpassed those of immigrant and foreign workers for the first time in 15 months.

Similarly, in last September, the U.S. Secretary of Homeland Security, Kristi Noem, stated that 100% of the new jobs created this year have been filled by U.S. citizens, excluding undocumented immigrants.

According to the most recent data at that time, employment for workers born in the U.S. increased by 284,000, while foreign workers experienced a drop of 87,000 jobs.

Frequently asked questions about the economic impact of Latinos in the U.S.