AZ Snapshot: How Latinos Drive the Economy

Posted on November 3, 2016 • Category: Economy



42.5 billion

How much Arizona Latinos are projected to spend in 2016.

Selig Center for Economic Growth, 2014 in DATOS: The State of Arizona's Hispanic Market
Arizona Hispanic Chamber of Commerce, Sept. 2016

WHY IT MATTERS

The buying power of Arizona Latinos is projected to increase another 33% by 2020. They are purchasing homes and starting businesses at a faster rate than ever before.

The 20th edition of DATOS, released by the Arizona Hispanic Chamber of Commerce in September, is an important report. The results align closely with national reports on the increasing impact of Latinos as consumers, home owners, workforce talent and business owners.

This AZ Spotlight focuses on some of the economic highlights of both the AZ Hispanic Chamber’s report and several national reports. Future issues will provide information about the impact of Latinos on other issues relevant to the state’s future.

Key economic findings of Arizona’s Latino population:

 

Latinos as Percentage of Total Population

Mexican immigration to the U.S. has been declining since 2007 and unauthorized immigrants from all nations make up less than 5.1% of the U.S. labor force.

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Latino Buying Power (2015)

U.S. Hispanic buying power has grown from $21 billion in 1990 to $1.5 trillion in 2015. It is expected to grow another 33% by 2020. In Arizona, Hispanic buying power is growing by about $2.2 billion per year.

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Growth in Hispanic-Owned Businesses (2007-2012)

A majority of Hispanic-owned businesses in Arizona are owned by Hispanic women, the fastest growing segment of all small businesses nationwide.

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Trade with Mexico (2015)

One in every 24 jobs nationwide depend on U.S.-Mexico trade. It is estimated that 111,000 Arizona jobs rely on trade with Mexico.

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Growth in Hispanic Homeownership (2015)

Estimates indicate that Latinos will account for roughly 40% of all new household formations in the U.S. by 2020.

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The Importance of Demographics

A recent Time Magazine article quoted Patricia Peneda, vice president of the Hispanic Business Strategy Group, who said that “…every 30 seconds, two non-Hispanics reach retirement age, while a new Hispanic customer turns 18.” Time also points out that Latinos have an average life span of 81.5 years, which is longer than both non-Hispanics and Blacks. Sept. 26, 2016

 

OTHER NEWS
52% Hispanics are projected to account for more than half of all new U.S. homeownership between 2010 and 2030.
State of Hispanic Homeownership Report  

National Association of Hispanic Real Estate Professionals, March 15, 2016

 

$42.5 B How much Arizona Latinos are projected to spend in 2016.
Selig Center for Economic Growth, 2014
in DATOS: The State of Arizona’s Hispanic Market  

Arizona Hispanic Chamber of Commerce, Sept. 2016

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Lattie F. Coor

"We are very pleased to provide AZ Snapshot, a regular publication of CFA. Each one is designed to help Arizonans understand more about who we are as a state today and the issues that most challenge us. I hope you find the information interesting and helpful in all you do on behalf of your community and Arizona."


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