There are big reasons to celebrate Hispanic Heritage, an increasingly indispensable powerhouse to the stability of the entire country.
In less than 10 years, the U.S. Latinx labor force has grown to become a powerhouse that rivals the economic power of entire countries, such as India, France, and Italy. That fact, combined with the most recent Census data, shows that the U.S. Hispanic communities are the driving force of population and economic growth and aid in the ongoing development of our country.
This Hispanic Heritage Month—which runs September 15 through October 15—we highlight the contribution of the Latinx community in the United States and their monumental importance to the present and future of America.
The Latinx population in the U.S. continues to grow
Every 10 years, the Census Bureau conducts a massive survey to update the demographic and population data of the country’s inhabitants. The data revealed in each Census helps to paint a clearer picture of our country. For example, this information is used to determine and redistribute electoral districts to better represent the general population in elections.
Last August, the United States Census released the 2020 population data. It found that:
- The population of the country increased by 7.4%
- More than half of that growth came from the Latino population in the United States.
- There are now 62.1 million Latinx citizens in the United States. That’s 18.7% of the total population.
- In 2000, the Hispanic population was almost half that amount, with just 35.7 million inhabitants.
Hispanic population growth will continue for decades to come
The Latinx population is expected to grow 29% by 2030, while the Anglo population could decrease by 6%, according to L’Attitude, an organization focused on highlighting the economic potential of the Hispanic community in the United States. By the year 2060, the Census estimates that Hispanics in the United States will reach 111.2 million inhabitants or almost 30% of the population.
The Hispanic population will be a more representative sector of the general U.S. population as each year passes, and in some places, even the majority.
In California, Hispanics became the new majority thanks to their growth, which grew from 37.6% to 39.4% of the population. At the same time, people who identified as white (40.1% in 2010) decreased to 34.7% in the most recent Census.
Latinos in the United States: 8th Largest Economy in the World
The rapid growth of Hispanics is even more impressive economically. If the Hispanic community in the United States were a country, its gross domestic product (GDP) would rank eighth in the world, even richer than Italy, Brazil, and South Korea.
Hispanics accounted for 82% of the growth of the workforce during 2010-2017, according to CNBC, even though this group represents less than 20% of the general population.
The economic output increased by $900 billion, which globally represents the third fastest growing GDP. By 2025, the gross domestic product is expected to become #5 in the world, according to L’Attitude.
Rising inflation hits the Hispanic communities hard
While inflation is hurting everyone, the Latino community is especially affected. Differences in consumption habits have seen this group spend a significant portion of their income on food and gas, two necessities that have seen substantial increases.
The Bureau also conducts a Consumer Expenditure Survey (CEX) that shows how different demographics allocate their spending in different categories.
Findings from the New York Fed estimate that Latinos are experiencing a 0.6% higher inflation rate than average. While this may seem relatively low compared to the overall inflation rate of 9.2%, it shows an increase. Many speculate that Hispanic and Black Americans are being squeezed even more due to the consumption of the amounts and types of goods. In addition to that, people in various locations face different prices for the same goods and lower-income Americans face higher price growth.
The pay gap
Throughout the years, the Hispanic community has overcome many obstacles, but the wage gap is something that is still a problem today. While US-born Hispanics earn a significantly higher income than those born internationally, each group is far below the average salary of White Americans. In a report by Census.gov, it is noted that the average Hispanic household earns just $.74 per dollar, a rate unchanged from 2018.
Another factor that can influence salaries is adapting to the financial and credit system of the United States. Many Latinos come from financial systems that work differently from the United States, so understanding how it works and what to do to improve their financial standing can be a difficult task. For example, most loans to buy a home, buy a car, or study is based on credit score or good savings.
Consolidated Credit is proud to assist the Latinx community
Building financial literacy that promotes financial stability in the Latinx community is vital to America’s economic growth. But the Hispanic sector is often at a financial disadvantage compared to other sectors, despite being the most powerful driver of economic development in the country.
Consolidated Credit is here to help people in the Hispanic community with financial crises and help solve money management problems through education, motivation, and professional counseling.
If you want to be financially successful, you must take steps to improve every aspect of your financial picture.
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