If California’s Latino population were its own economy, it would rank among the world’s largest.
A new report from UCLA and California Lutheran University reveals that California Latinos generated over $1 trillion in economic output in 2023—more than the GDP of nations like the Netherlands or Switzerland. Without this contribution, California would have dropped from the fifth- to the eighth-largest economy in the world.
California’s Latino Workforce Is Transforming the Economy
The California Latino GDP Report, released in July 2025, highlights just how vital Latinos are to the state’s economic health. Latino workers, entrepreneurs, and consumers drove nearly a quarter of the total U.S. Latino GDP, which surpassed $4 trillion nationally last year. In California alone, Latinos contributed over $1 trillion to the state’s total $3.9 trillion GDP.
“Latinos have been driving California’s economy for 250 years,” said David Hayes-Bautista, professor of medicine at UCLA and co-author of the report. “The state needs to maximize its investment in young Latinos’ health and education. Anything that detracts from that investment detracts from California’s future.”
What’s Fueling the Growth?
The report points to a set of powerful, overlapping trends:
- Labor force growth: California’s Latino labor force is growing 15 times faster than the non-Latino workforce.
- Educational gains: Latino educational attainment is increasing 3.4 times faster than among non-Latinos.
- Higher participation: Latinos are 5.6 percentage points more likely to be working than their non-Latino counterparts.
- Immigrant contributions: 41% of working-age Latinos are immigrants, accounting for an estimated $400 billion in annual output.
- Health advantages: Latinos have lower age-adjusted mortality rates across the five leading causes of death and a life expectancy over two years longer than non-Latino whites.
Diverse Industries, Expanding Opportunity
The report also found that the Latino economy in California is more diversified than the broader state economy. The top sectors include:
- Finance and real estate
- Professional and business services
- Government services
- Education and health care
- Retail trade
In finance and real estate alone, Latino workers generated more than $137 billion in output.
“The vitality of the overall California economy greatly depends on the intensity of the economic activity of Latinos,” said Matthew Fienup, executive director of the Center for Economic Research & Forecasting at Cal Lutheran and co-author of the report.
Why It Matters for the State’s Future
The report’s authors warn that California’s continued economic strength hinges on supporting Latino youth, especially in areas like education, healthcare, and workforce development. As Hayes-Bautista noted, GDP growth leads to better wages, higher living standards, and greater mobility—not just for Latinos, but for the entire state.
This year’s findings are part of a broader national research effort. In addition to the annual U.S. Latino GDP Report and the inaugural Latina GDP Report, researchers are now focusing on major metro areas and other high-growth states like Florida, Texas, and Arizona.
As the Latino population continues to grow, so does its economic influence. California’s story offers a vivid case study in how immigration, entrepreneurship, and demographic shifts are shaping not just communities—but entire economies.
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