Latinos are the largest contributor to Arizona's growing workforce, primarily because they tend to be younger and have higher birth rates than the rest of the population, according to a new report.
However, because Latinos tend to work in lower-paying jobs and therefore earn lower wages on average than their peers, their economic output lags behind their share of the overall population, the report said.
The report, prepared by the Latino Donor Collaborative, a nonprofit research group, and Wells Fargo, aims to highlight the economic contributions of Latinos and underscore their potential to contribute to future economic growth through investments in education and training.
The report, presented during a symposium of business and community leaders Thursday at Arizona Public Service headquarters in Phoenix, also aims to change perceptions of Latinos, said Ana Valdez, president and CEO of the Latino Donor Collaborative.
The report “empowers Latinos, empowers who we really are, not just the perception but the reality of who we are, which is that we drive the economy. We are a gift to this country. We are the hardest working people,” Valdez told attendees in a video address from Los Angeles.
What does the data say?
With nearly 1.05 million workers, Latinos make up about 33% of Arizona's workforce. Between 2011 and 2021, Arizona's workforce grew by 400,000 workers. Of the 400,000, 276,000 were Latino. That means Latinos accounted for 68.6% of the state's total workforce growth, the report said.
During the same period, Arizona's labor force grew at an annual rate of 1.4%, the report said. But the Latin American labor force grew more than twice as fast, at 3.1%, the report said.
“The main message here is that Latinos make up a significant portion of the labor force and account for most of the state's labor force growth,” said Jose Jurado, an ASU economist and co-author of the report with ASU economist Dennis Hoffman.
The reason for this is: “Latinos tend to be much younger and have a higher birth rate than their peers, and that allows them to fill jobs in the workforce as the U.S. population stagnates and the birth rate decreases,” said Jurado.
“A National Economic Tidal Wave”
Latinos contribute $72.6 billion to Arizona's economy, meaning Latinos account for about 17.3% of the state's economic output, the report said.
However, this share of 17.3% falls short of the Latino share of the overall population, Jurado noted in an interview. Latinos make up about 33% of the state's 7.4 million residents.
That's because Latinos, on average, have lower annual incomes due to their lower levels of education, Jurado said.
Latinos also tend to have fewer assets that pay dividends or interest, he said.
“Closing this complex gap requires decisive public action, including reducing the educational attainment gap between members of this population. Even today, a college degree is associated with lifetime earnings increases,” Jurado said in an email.
“The gap underscores the need to invest in Arizona’s Latino workforce to drive the state’s economy going forward,” noted Jeffrey Guldner, president and CEO of Pinnacle West Capital Corp., which owns `S.
“What you're seeing is that this demographic shift really means investments that we need to make to continue to shape our workforce to reflect the communities in which we operate,” Guldner said during a panel discussion. “It’s a really important population that we need to pay attention to.”
The data shows that Arizona's economy is driven by the state's growing Latino population, increasing Latino purchasing power and the increasing number of Latinos pursuing education beyond high school, said Chris Camacho, president and CEO of the Greater Phoenix Economic Council.
Latinos, he said, represent “a national economic tidal wave.”
“I hope reports like this will be embraced by the broader business and civic community,” Camacho said. “We're one of the states that has this really strong tailwind of really positive demographic change, and that's a small indicator of the bigger picture for the U.S.”
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