Balta is director of solutions journalism and DEI initiatives for The Fulcrum and a board member of the Bridge Alliance Education Fund, the parent organization of The Fulcrum. He is publisher of the Latino News Network and a trainer with the Solutions Journalism Network.
Drawing from the anti-immigrant playbooks he used in 2016 and 2020, former President Donald Trump is now bolstering his plan for mass deportations if he returns to the White House, basking in the approval of roaring crowds chanting “Get ’em out” and “Send them back.”
In his speech accepting the nomination for president at the Republican National Convention, in the debate with Vice President Kamala Harris and on the campaign trail, Trump claimed an invasion was taking place on the southern U.S. border.
He is absolutely right.
Except it isn’t an invasion of people who are attacking “villages and cities” in America, taking “Black jobs” and “Hispanic jobs,” or abducting and eating pets — just a few of the most recent outlandish, unfounded claims Trump has made.
What we are seeing is an advance of communities playing a significant role in shaping the cultural, social, and economic landscape of the United States. When it comes to Hispanic and Latino immigrants, a frequent favorite target of the former president, the contributions have historically been pivotal in the nation's development.
As the Nov. 5 election draws nearer, the economy remains a key issue for voters. Here's how Hispanic Latinos continue to serve as an engine of economic growth in the United States.
The economy
UCLA and California Lutheran University report that the U.S. Latino gross domestic product reached $3.7 trillion in 2022, the highest mark since the figure was first tracked and would be the fifth largest national GDP in the world. Latinos helped propel the U.S. economy during the Covid-19 pandemic and then quarterbacked the nation’s economic recovery, according to the study.
“When COVID-19 struck, many analysts predicted that earlier Latino economic gains would be erased,” wrote David Hayes-Bautista, co-author of the report. “But the U.S. Latino GDP has continued to roar on.”
A considerable contribution to the U.S. economy is coming from Latinas. According to another report, funded by Bank of America, the female Hispanic population contributed $1.3 trillion to gross domestic product in 2021, an increase from $661 billion in 2010.
“Whereas all Latinos are a source of economic strength, Latinas are drivers of vitality that the economy needs,” said economist Matthew Fienup.
The workforce
According to the Latina GDP report, Latinas are demonstrating impressive growth in labor force participation compared to other demographic groups. In 2000 and 2021, the participation rate for Latinas increased by 7.5 percentage points, while the participation rate for non-Hispanic women remained relatively unchanged during the same period.
Additionally, the report highlights that Hispanic workers, women and men, showed resilience in the face of economic challenges. While overall labor force growth slowed in 2020, the rates for Hispanic individuals remained positive, reflecting their continued engagement in the workforce.
Hispanics make up about 19 percent of the U.S. workforce and exhibit a higher labor force participation rate than the national average. One contributing factor to this trend is the relatively younger demographic of Hispanic workers, with a median age of 38.5 years, which positions them favorably for future labor market participation.
In states like California, Texas, and Florida — home to the largest Latino populations in the U.S. — more than a quarter of the labor force comprises Hispanic or Latino individuals, underscoring their significant role in these regions' economies.
The ready-to-work immigrant population has boosted the labor force and job growth in the post-pandemic U.S. economy. Estimates from the Hamilton Project suggest higher immigration fostered payroll job growth by 70,000 jobs per month in 2022, 100,000 jobs per month in 2023, and the same so far in 2024.
Driving small business growth
Latino-owned businesses contribute billions of dollars to the economy each year.
According to an analysis of Census Bureau data, new businesses owned by Latinos account for 36 percent of launches in 2023.
"The entrepreneurial spirit and drive to achieve the American dream of business ownership runs strong among Hispanics, including those who have been here for generations and those who have recently arrived," writes Beto Yarce, the Seattle-based Pacific Northwest regional administrator for the Small Business Administration.
According to State of Latino Entrepreneurship, a 2023 report by Stanford University, nearly 5 million Latino businesses generate more than $800 billion in annual revenue. Additionally, these businesses pay an impressive $100 billion in employee wages.
"In the Pacific Northwest in fiscal year 2023, the SBA’s two most popular loan programs, 7(a) and 504, were used by 225 Hispanic-owned businesses that leveraged the $75.5 million to grow and strengthen their companies," writes Yarce. "So far this fiscal year, both the loan volume and dollars are already exceeding FY 2023: 269 businesses approved for nearly $77 million in loans."
Latino business owners like Dayana and Jessica Klein, the Venezuelan sisters behind Klein’s Bakery in Chicago, are playing a pivotal role in Illinois’ economy by bringing new products and services to the neighborhoods where they operate and generating local jobs and tax revenue.
In the series premiere of “ ¡Presente!,” host Francia Garcia Hernandez spoke with the Klein sisters about the opportunities and challenges of opening and growing a small business. “When we moved here, we had to reinvent ourselves and went back to our origins,” Jessica Klein said about opening the bakeries. Starting a new business was riddled with challenges, from introducing customers to Venezuelan flavors like golfeados, which are sweet bread rolls, to dealing with language barriers.
According to the Stanford study, immigrant Latinos own more businesses than white immigrants. Immigrants own 52 percent of Latino-owned businesses, while only 7 percent of white-owned companies are owned by immigrants. Yet, they face more challenges than U.S.-born small business owners.
Paying in without a payoff
“These millions and millions of people coming in, they’re trying to put them on Social Security. He will wipe out Social Security,” Trump said of President Joe Biden during their debate earlier this year.
While it is true Social Security is at risk, resolvable only if lawmakers enact substantial policy corrections, Social Security’s problems are not caused by immigrants.
Karen Holden, a University of Wisconsin-Madison professor emerita of public affairs and consumer science focusing on Social Security, said the truth is almost the opposite: “If anything, we’re gaining from undocumented immigrants.”
Unlike citizens, undocumented workers who are paid off the books or use fabricated Social Security numbers cannot receive Social Security benefits. They are, in essence, paying into the system without receiving a payout.
There are many problems with the U.S. immigration system. There's plenty of blame to go around to Republicans and Democrats. But demonizing vulnerable people for political points isn't going to solve anything.
So, the next time someone indignantly tells you, “Illegal aliens are invading our country!” (which is an incorrect derogatory term by the way — the topic of a future column perhaps) I hope you will say, “Yes. Yes, they are!” And share the link to this article with them.
