4 minute read 6 Sep 2019
Latin american coworkers reviewing paperwork

Five ways to leverage the economic benefits of Latino immigration

By

Karyn Twaronite

EY Global and EY Americas Diversity & Inclusiveness Officer

Driver of diversity and inclusiveness programs to provide equitable opportunities and experiences for all. Passionate advocate for creating a sense of belonging.

4 minute read 6 Sep 2019

Ground-breaking research reveals the Latino community as a crucial driver of US economic growth.

In today’s world, the discourse surrounding Latino immigration to the US is unquestionably divisive. At EY, it prompted us to dig deeper for the facts: how can we measure the Latino community’s impact on the US economy? And, how can businesses better understand the implications and take action?

Our study with the Peterson Institute of International Economics yielded powerful and surprising findings. We uncovered that Latinos are twice as likely to start a new business as the rest of the US population and between 2019 and 2048, Hispanics will account for 85% of new job holders in the US workforce.

These findings and others support the notion that the Hispanic population plays a disproportionately large role in US economic growth, through expanding the economy by creating new businesses and jobs for all Americans, driving new demand for US companies’ goods and services and replenishing an aging workforce with young, well-educated and entrepreneurial workers.

Economic benefits of the Latino community

At EY, we believe that a diverse and inclusive environment is central to making people of all backgrounds experience a sense of belonging in the workplace and helping us achieve better business outcomes. In our EY Belonging Barometer survey of 1,000 working US adults, we found that 27% of Hispanic respondents said that they feel they belong most at work when their unique contributions are valued. 

The entrepreneurial spirit, as exemplified by the Latino community, is crucial to our success as an organization and to the working world. But this isn’t just for the benefit to our bottom lines – it extends to the health of the communities around us and the wellbeing of all our people.
Karyn Twaronite
EY Global and EY Americas Diversity & Inclusiveness Officer

Five corporate imperatives

Businesses should consider taking the following actions to leverage the economic growth potential of the Latino community:

1.  Establish recruitment, training, promotion and retention programs focused on the Latino community

More than half of the increase in US population over the next five years will be driven by an expanding Hispanic population. Members of this community – both US-born and immigrants – are our future business leaders. They need education and training.

2.  Target Latino firms as investment and M&A targets

The Latino community will be responsible for significant growth in the GDP over the next 25 years. It exhibits significantly higher levels of opportunity-driven entrepreneurship than the rest of the US population. Business should encourage capital investments and financial programs focused on Latino business leaders and entrepreneurs.

3.  Reach and work with the growing Latino population

To leverage the growing population to the advantage of your business growth, develop ties with Hispanic contractors, pioneer targeted service offerings and market and advertise to the Latino community specifically.

4.  Invest and collaborate with programs and organizations focused on enhancing the Latino community

It is important to understand the skill sets of the Latino community through partnerships with think tanks focused on highlighting those opportunities. It’s also crucial to invest part of your corporate social responsibility budget in programs focused on the Latino community – particularly in STEM and technology.

5.  Champion the contributions of the Latino community and lead with those opportunities in mind

Emphasize the positive economic and social impact of the Latino community. Put leaders in place to advise your employees and clients on how to prepare for these economic growth opportunities.

Summary

A new study underscores the Latino community’s outsized role in expanding the US economy. From creating businesses and jobs, to replacing an aging workforce with young, well-educated workers, Hispanics drive growth for everyone. How can business best leverage the study’s powerful findings? EY offers five key takeaways.

About this article

By

Karyn Twaronite

EY Global and EY Americas Diversity & Inclusiveness Officer

Driver of diversity and inclusiveness programs to provide equitable opportunities and experiences for all. Passionate advocate for creating a sense of belonging.