Six key factors regarding LatinX U.S. consumers and employees.
I recently attended a breakfast at the L’Attitude conference in San Diego, CA and had the opportunity to hear a panel of speakers, facilitated by Sol Trujillo, who spoke specifically about the most recent LDC Latino GDP Report. I believe this information is important to all business in the U.S.A.
Let me share with you some of the highlights of the report, as they pertain to business in the United States. I would then like to make some suggestions as to why you should pay attention to this segment in your own business.
Strength of Economic Numbers within the Latino population:
The report indicates that the largest factor in Latino GDP growth from 2010-2017 was the personal consumption of this segment of the population. Latino consumption grew 72% faster that all other segments of the population during the same period of time. Know that the data is measured from legal Latino immigrants, and the large number of Latinos born in the USA — this segment of the population is now earning more and consuming at a faster rate than ever.
Latino participation in the national workforce is (Labor Force Participation – LFP) at 67.4%, or a full 5% higher that the rest of the non-Latinos.
The report indicates that this group is only 18% of the population, but they are 82% of the growth in the U.S. labor force since our last recession. This group is not taking jobs away from anyone, as we have some of the lowest unemployment in our history — this group is helping with the growth of our economy.
Remember that we need a growing labor force coming into the market as the baby boomers begin to leave the work force.
The report indicates there are, and will be, a staggering number of jobs that need to be replaced in order to maintain growth in our economy, and to replace the baby boomers who will be leaving the workforce.
From 2010 to 2017, the number of educated Latinos rose by 51%, while the number of non-Latinos grew 21%.
Many of these new employees into the marketplace are native English and Spanish speakers, with educations at all levels. Based on my own experience in the USA, and the 30+ countries I have worked in, education is the key to improving economic status and changing family legacy.
This is an important number, as in the U.S. we have always needed an educated workforce. This group, with their talents, provides an excellent solution to helping our economy grow in.
What should you do about the strength of the Latino economic contribution?
If you are a big or small business in America, you need to add this group of individuals as an important part of your business. In the presentation today they mentioned that 40% of Dallas, Texas is Latino based; here in San Diego, the local San Diego Union Tribune reports that 32% of the population is Hispanic.
If you are a business anywhere in the USA you simply cannot ignore this important group of consumers and employees.
Six factors to think about:
- You might want to have some of your employee manuals, training, and guides prepared in Spanish.
- For success with employees, you might want to take into consideration some of the differences that might exist in Latin culture, not just about their language.
- Make sure you look at your marketing plan and make decisions about what you should have available in Spanish and English. You might want to start with your website. As I have indicated in previous articles, make the investment to have the information professionally translated in the version of Spanish that meets your marketplace, not Google Translate.
- If your local population has anywhere near the number of Spanish speakers that Dallas or San Diego have, you definitely need to think about employing someone who can help you with your business overall, with the cultural and language considerations.
- Get involved in the local Latino organizations. This morning I was invited by the Hispanic e-Chamber of Commerce, a national organization that is helping businesses work with each other and learn how to better perform on the web.
- Ignore the negative news about border, the wall, and the political poker chips being played on the news. I myself am a Latino that legally came across the Canadian border. Yes, Jaime Hernandez was born in Canada, and as a business owner I successfully support and help businesses in almost every country in Latin America, and across the United States, in 3 languages. Like myself, most of this population was raised speaking English, educated in America, and, like most Americans, their ancestors came from another country. Latinos are a tremendous opportunity for business.
I wouldn’t stop here, but these are the basics you should start with. Today’s meeting is reinforcement to what I have been encouraging American-based businesses to think about for a while. The data has actually built a stronger case than I have been writing about.
According to the US Census data, Latino and Hispanic population ranges from 1.9% in Vermont to 99.1% in Puerto Rico (no surprise).
If 18% is the average of Latinos in American, what is the number in your marketplace? I would sit down and make a plan.