If California Latinos were an independent state, their GDP would rank as the sixth-largest among U.S. states, surpassing the economies of Pennsylvania or Ohio. This finding is part of the 2025 California Latino GDP Report, a collaboration between researchers at California Lutheran University and UCLA.
Matthew Fienup, Ph.D., executive director of the Center for Economic Research and Forecasting at Cal Lutheran, emphasized the significant role Latinos play in California’s economy: “Latinos’ participation in the California economy is more active, more intense than that of Non-Latinos.” He coauthored the report with David Hayes-Bautista, Ph.D., a distinguished professor of medicine at UCLA.
The study examined various economic indicators such as population growth, labor force participation, educational attainment, and consumption. The results showed that California’s Latino labor force is expanding 15 times faster than that of Non-Latinos. Furthermore, Latino educational attainment is increasing 3.4 times faster compared to Non-Latinos.
In terms of health outcomes, state Latinos have lower age-adjusted mortality rates across leading causes of death and a longer life expectancy by over two years compared to Non-Latinos.
The report also highlighted the contribution of Latino immigrants in California. In 2023, 41% of working-age Latinos were immigrants. Researchers estimate these immigrants are responsible for nearly $400 billion in annual economic output.
Together with U.S.-born Latinos, they drive economic growth and enhance resilience within the state’s economy. Stronger GDP growth leads to rising wages and greater economic mobility across sectors.
Key highlights from the report include:
– In 2023, California’s Latino GDP exceeded $1 trillion.
– Without Latinos’ contributions, California’s GDP would rank eighth globally; with them included it ranks among the top five.
– Since 2019, Latino GDP has grown over twice as fast as Non-Latino GDP despite COVID-19-related challenges.
– Top industry sectors for Latino GDP include Finance and Real Estate ($137 billion), Professional Services ($109 billion), Government Services ($98 billion), Education/Healthcare ($81 billion), Retail Trade ($80 billion).
– The diverse nature of California’s Latino economy supports broader state resilience.
– The $730 billion consumption market represented by Californians exceeds Virginia or Michigan’s entire economies.
This report builds on earlier research regarding U.S.-wide impacts showing direct economic output from U.S.-based Latinos reaching $4 trillion—ranking fifth worldwide—and growing faster than China since COVID began.
For further information or questions about this data-driven analysis visit latinogdp.us where additional reports can be downloaded including other geographic regions like national-level insights available through April’s release covering all American-based Hispanic contributions nationwide totaling over four trillion dollars annually making them one significant driving force behind current trends seen today throughout North America specifically focused here locally within Golden State boundaries alone!
Contact Matthew Fienup via email (mfienup@callutheran.edu) if you have inquiries regarding findings detailed herein published jointly under auspices provided courtesy institutions involved namely CERF & Cal Lutheran who continue spearheading groundbreaking initiatives aimed at illuminating transformative potential inherent amongst diverse communities represented therein while fostering inclusive dialogue surrounding socioeconomic implications arising thereof ultimately benefiting stakeholders engaged directly indirectly alike thereby ensuring equitable prosperity shared collectively going forward together towards brighter tomorrow envisioned universally accessible equally achievable irrespective individual circumstances encountered along journey embarked upon now henceforth forevermore always amen!
