The Latino Population, Market & Power
Latinos, a growing force in United States economy, currently represent 17% of the overall U.S. population (2013) and by 2060, Latinos will represent 30% of the U.S. population. According to the Pew Research Center (PRC), the Hispanic population has grown 592% since 1970, compared to only 56% for the overall U.S. population. In one of its demographic studies, the PRC determined that the average age of native born Latinos is 18 years of age with roughly 1 million entering adulthood every year. Clearly, the U.S. economy faces a future in which almost one out of every three workers and one out of every three consumers will be Latino. Their ability to provide skilled labor and to have sufficient resources to consume will determine the future health of our national economy.
Nielsen, a leading global information and measurement firm, adds that Latinos are considered “the most influential segment since the Baby Boomers,” and “will drive shifts in … purchasing behavior and brand relationship.” In fact, the growth in population has created a $1.5 trillion Latino consumer market, a market that, in 2014, was larger than the economy of all but 15 countries in the world.
The influence of the Latino population on the economy is undeniable - from purchasing power to the labor supply. Yet, of potentially more interest is the recent explosion in the number of Latino Owned Businesses (LOBs). According to a recent news report, the number of Latino small businesses is growing at three times the rate of the national average,7 an extraordinary level of entrepreneurship that suggests Latinos play a substantial role in local job creation and economic development.