Latinxs: The labor force to the rescue of the economy
By 2060, 30 million Latinxs will join the U.S. labor market.
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Latinx Labor Force Participation (LFP) is one of the key factors in U.S. economic recovery in the coming years. During the first months of the pandemic there was already a growth in this indicator.
From April to June 2020, as government-mandated closures began to lift, Latinx Labor Force Participation increased by 1.1% on average per month. Also, during the summer, it grew at more than twice the rate of the Non-Latino population. Over the same three months, this sector only recovered by an average of 0.5% per month.
This data is contained in the 2020 LDC U.S. Latino GDP Report, led by the non-profit Latino Donor Collaborative (LDC) and made by four researchers from the California Lutheran University and the UCLA Geffen School of Medicine.
According to the same document, this growth in the Latino workforce is linked to its population growth. The increase in the Latinx population is 7.6 times faster than that of the non-Latino population. Added to that is the advantage that Latinos have a younger average age: until 2018 it was 29.5 years old, while for Non-Latinos it was 40.6 years old. The youth allow them to join and grow into the critical group of adults of working age: 18 to 64 years old.
In fact, according to projections by the U.S. Census Bureau, 30 million Latinxs will be added to this important segment by 2060.
Latinxs, then, will fill the gaps that Non-Latino Baby-Boomers are leaving. Federal Reserve economists expect the number of retirees to increase substantially in the next two years. By 2022, this rate will reach its peak: about 350,000 people, mostly Non-Latino Baby-Boomers, will retire each month.
The Latino Donor Collaborative report adds that young Latinxs are also more likely to be working or searching for a job. In 2018, Latinx Labor Force Participation (LFP) was 66.7%, more than five percentage points higher compared to the Non-Latino population.
Another finding is that although the Latinx community occupies only 18.3% of the total population in the United States, it has been responsible for a 78% growth in the nation's workforce since the Great Recession.