Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Growth Latino Gdp topic
No spam. Unsubscribe anytime.
California Latino GDP tops $1 trillion, researchers tell Senate committee
Summary
Researchers told the California State Senate select committee that Latinos in California generated more than $1 trillion in direct economic activity in 2023, driving labor-force growth and consumption that underpin the state's overall economy.
State Senator Susan Rubio convened the California State Senate Select Committee on Minority Economic Development for a briefing in Sacramento where researchers from the Latino GDP project presented new findings showing the direct economic contribution of Latinos living in California exceeded $1,000,000,000,000 in 2023.
Matthew Fienup, a researcher with the Latino GDP project, told the committee the figure reflects rapid growth across labor force participation, education and consumption. “In that year, the direct economic contribution of Latinos living in California passed $1,000,000,000,000 for the first time,” Fienup said. He added Latino consumption in California now tops more than $700,000,000,000, and that Latino GDP has grown more than twice as fast as non‑Latino GDP over the period the project studied.
David Hayes Bautista, who founded the research initiative, told the committee the Latino component of California’s labor force is expanding particularly quickly: “In California, the Latino labor force is growing 15 times faster than the non‑Latino labor force,” he said, and noted that the recent rise in overall state GDP ranking is substantially linked to Latino economic activity.
Researchers described the demographic driver as intergenerational: young U.S.‑born Latinos are entering the workforce in large numbers. Fienup said that under age 25 California’s Latino population is “overwhelmingly U.S. born,” and that intergenerational gains in educational attainment are contributing to productivity growth.
The presenters also flagged immigration and policy risks. Fienup noted about 41% of California’s Latino labor force are immigrants, accounting for hundreds of billions in economic activity, and cited a Dallas Federal Reserve scenario cited by the researchers that forecast recent shifts in immigration could reduce U.S. GDP growth relative to baseline forecasts over a near term period. The researchers said these kinds of demographic and policy variables underline the value of data‑driven investment in education, healthcare, homeownership and entrepreneurship to sustain growth.
Committee members pressed for implications: Senator Suzette Valladares asked whether housing costs could drive out the Latino labor force from high‑cost counties; presenters said county‑level data show recent declines in Latino population in some high‑housing‑cost counties while growth continues in lower‑cost regions such as the Inland Empire.
The researchers asked the legislature to consider ongoing investment in higher‑frequency data and modeling. Fienup described plans for an economic‑development dashboard to deliver quarterly and monthly indicators and to permit policy scenario analysis, saying it would allow the state to measure returns on investments in education, health and housing more rapidly.
The committee did not take formal action during the session; members said they would invite the researchers back for follow‑up and explore how to integrate the findings into upcoming committee hearings on access to capital and workforce development.
