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Hispanics, Not Trump, Are the Biggest Engine Of U.S. Economic Growth

Hispanics, Not Trump, Are the Biggest Engine Of U.S. Economic Growth

Excerpt Forbes:

In ground breaking research that has significant implications for U.S. policymakers and financial institutions, Peterson Institution for International Economics (PIIE) researchers found that “The Hispanic community in the United States has contributed significantly to US economic growth in recent decades and will continue to do so over the next 10 to 20 years.”

Gonzalo HuertasPIIE

Research Analyst Gonzalo Huertas and Senior Fellow Jacob Funk Kirkegaard, in their recently published working paper, The Economic Benefits of Latino Immigration: How the Migrant Hispanic Population’s Demographic Characteristics Contribute to US Growth, present an incredible diversity of quantitative analysis that proves that “The outsized contribution of Hispanic immigrants to US economic growth results from the quality of the workforce, not just quantity.

Jacob F. KirkegaardPIIE

Given the growth of Hispanics in the U.S. workforce, they represent significant market opportunities for every type of financial institution, including banks, insurance companies, asset managers, and fintech.  Unidos US, a non-partisan Latino civil rights and advocacy organization projects that in five years, Hispanics will account for about 20% of the U.S. workforce and over 30% by 2050.

Hispanics will soon be 1/3 of the U.S. workforceUNIDOUS

Huertas’ and Kirkegaard’s research shows that “the increase in Hispanic labor could contribute around 0.21 percentage points to annual real GDP growth in the United States over the next three decades if the Hispanic community catches up to the rest of the country in labor productivity.” By 2025, the increase in employed Hispanic labor could contribute more to US GDP growth than non-Hispanic labor.

Sources: Huertas’ and Kirkegaard’s calculations, based on data from Congressional Budget Office (CBO 2017, 2018a, 2018b); Federal Reserve Bank of St. Louis (2019); Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey (accessed January 2019); and US Census Bureau.

Projected contribution to GDP growth from changes in employed laborPIIE