Latino Drive surges in California’s economy

If California’s Latino population is its own economy, it will be listed as the largest economy in the world.

California Latin Americans generate more than $1 trillion in economic output in 2023, more than countries such as the Netherlands or Switzerland, a new report from UCLA and Lutheran University shows. Without this contribution, California will decline from the world’s fifth largest economy.

California’s Latino workforce is changing the economy

this California Latino GDP ReportReleased in July 2025, highlighting the importance of Latinos to the state’s economic health. Latino workers, entrepreneurs and consumers drive nearly a quarter of the U.S. Latino GDP, which exceeded $4 trillion nationwide last year. In California alone, Latinos contributed more than $1 trillion to the state’s $3.9 trillion GDP.

“Latinos have been driving California’s economy for 250 years.” David Hayes-Bautistaprofessor of medicine at UCLA and co-author of the report. “The state needs to maximize its investment in the health and education of young Latinos. Anything that hurts this investment will hurt California’s future.”

What promotes growth?

The report points to a series of strong overlapping trends:

• Labor growth: California’s Latino workforce is growing 15 times faster than non-Latino workforce.
• Educational benefits: Latino education is growing 3.4 times faster than non-Latinoans.
• Higher participation: Latinos are more likely to work than non-Latinos.
• Immigration donations: 41% of working-age Latinos are immigrants, with an estimated annual output of $400 billion.
• Health Advantages: Among the five major causes of death, Latinos have lower age-adjusted mortality rates and life expectancy exceeds non-Latino whites.

Diversified industries and expand opportunities

The report also found that California’s Latino economy is more diverse than the broader country’s economy. Top departments include:

• Finance and real estate
• Professional and commercial services
• Government Services
• Education and health care
• Retail Trade

In finance and real estate alone, Latino workers have produced more than $137 billion Output.

“The vitality of California’s overall economy depends largely on the intensity of economic activity in Latin America.” Matthew Fienupexecutive director of Cal Lutheran’s Center for Economic Research and Forecasting, and co-author of the report.

Why is important to the future of the country

The authors of the report warn that California’s continued economic power depends on supporting Latino youth, especially in areas such as education, health care and workforce development. As Hayes-Bautista points out, GDP growth can increase wages better, higher standards of living and greater liquidity – not just Latinos, but the entire state.

This year’s discovery is part of a broader national research effort. Except for the year Latino GDP report in the United States and inauguration ceremony Latina GDP ReportNow, researchers are now focusing on major metro areas and other high-growth countries such as Florida, Texas and Arizona.

As the Latino population continues to grow, so does its economic impact. The California story provides a vivid case study of immigration, entrepreneurship and demographic transformation that shapes not only communities but also the economy as a whole.

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