Forbes Calls Hispanics “Biggest Engine” of US Economy
In an article published earlier this year, Forbes magazine gathered quantitative evidence to conclude that Hispanic community has “contributed significantly” to the growth of the US economy.
The recognition of Hispanic power in the workforce comes from a research paper titled “The Economic Benefits of Latino Immigration: How the Migrant Hispanic Population’s Demographic Characteristics Contribute to US Growth” by Gonzalo Huertas and Jacob Kirkengaard. Forbes highlights the paper’s acknowledgement of positive changes in economic development thanks to the high quality of work provided by Hispanic immigrants. Huertas and Kirkegaard also believe the Hispanics “have exceeded” other US demographics in the workforce through demonstrating exceptional entrepreneurial potential.
Other key takeaways from their research include the fact that Hispanics are the largest demographic that take part in new business opportunities. Circumstances like these are especially and increasingly appealing to the younger generation, thanks to the significant efforts made to make education more accessible and affordable. According to Huertas and Kirkegaard, there has been up to a 90% increase in high school graduation rates within the Hispanic community over the past 20 years.
The Peterson Institute for International Economics (PIIE) also notes the recent decrease in offspring may benefit the Hispanic community financially in the long run. Having fewer children in the family means more disposable income, and “the community will still account for the majority of the contribution to GDP growth from labor input in the future, a finding that underlines that it is important to continue fostering increased labor productivity among Hispanics.”
Even so, much more still needs to be done. UnidosUS Senior Strategist Sabrina Terry tells Forbes that Hispanics have difficulty obtaining credit, which may result in “predatory lender.”
“Financial institutions need to learn about other metrics, alternative data, to better understand the credit worthiness of Latinxs and that show that they are responsible and can pay back their debt,” Terry says.
PIIE also urges Hispanics to not lose sight of their entrepreneurial ambitions by sustaining their overall performance in academics.
“The continued numerical growth of the Hispanic community makes it imperative that their positive trend in educational attainment be sustained and strengthened to include the highest tertiary levels of education,” says PIIE. “Only then can the Hispanic community reap the full demographic dividend and convergence in wage levels be achieved.”