ICYMI: The Latino-Driven Economy

0:00What if data didn't sit still? What if intelligence moved with us? Not buried in reports, but activated in real time, where lives are being shaped, where decisions are being made. It all starts with a question. Where is the potential? Cotality turns data into clarity, intelligence into insight, insight into action. Because when intelligence moves, we all move forward. Cotality. Intelligence beyond bounds. Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else.

0:44So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com. Hey, everyone. It's Cal Penn. I'm inviting you to join the best sounding book club you've ever heard with my podcast, Earsay, the Audible and iHeart Audiobook Club. Every episode, I nerd out with amazing guests and dive into the best new audiobooks available on Audible. It's the book club for your ears. Listen to Earsay, the Audible and iHeart Audiobook Club on the iHeartRadio app or wherever you get your podcasts.

1:30This is Jacob Goldstein from What's Your Problem. Running a business is hard enough. Don't make it harder with a dozen apps that don't talk to each other. One for sales, another for inventory, a separate one for accounting. That's software overload. Odoo is the all-in-one platform that replaces them all. CRM, accounting, inventory, e-commerce, HR. Fully integrated, easy to use, and built to grow with your business. Thousands have already made the switch. Why not you? Try Odoo for free at odoo.com. That's odoo.com. Bloomberg Audio Studios. Podcasts. Radio. News. You're listening to Bloomberg Businessweek with Carol Masser and Tim Stenevek on Bloomberg Radio.

2:20Let's talk a little bit about the U.S. economy and specifically the role of Latinos in the U.S. economy. According to this year's U.S. Latino GDP report, they found that the GDP from Latinos hit a record high in 2023, up to$4.1 trillion. That's up from$3.7 trillion in 2022. Needless to say, Latinos are a huge part of the U.S. economy. And I think a lot of people have questions right now about what immigration policies and what deportation policies mean for that number. We've got with us right now Ana Valdez. She's president and CEO of the nonprofit, the Latino Donor Collaborative. She joins us this afternoon from Los Angeles.

2:58Ana, good to have you with us this afternoon. Thank you so much, Emily and Tom. Just describe how you look at the definition here of Latinos and of how you're measuring the data and their economic impact here.

3:15Ana Valdez:Absolutely. First, let me tell you that this report that I'm going to talk about was done by Arizona State University. We work with the economic center there. And so what we found is that after measuring the Latino GDP in the United States, and remember, Tom and Emily, that all these numbers are based on official numbers. And we do that so that the credibility is there, so that there is no way out of it. And so after measuring it for eight years this year, which are the numbers from 2023, as you know, those numbers don't come until two years later. The Latino GDP of the United, in the United States, remember, this is U.S.

3:55Ana Valdez:Latinos. They produced four trillion dollars in GDP. And so that you guys and of course our audience understand if Latinos in the U.S. would be an economy by themselves, they would be the fifth largest economy in the world. And these numbers are always surprising when it's the first time you've heard them. Right. Because, of course, there is this, you know, some unfortunate perception that Latinos come to this country and they don't contribute and they are actually working with the system. The truth is that a large part of the GDP of the United States is produced by this cohort. What sectors of the economy are Latinos contributing the most to?

4:42Ana Valdez:So, you know, traditionally, Emily, of course, we see that, you know, manufacturing and, you know, housing and all this, you know, fields, right? The agricultural part were very important and they're still very important. What is really interesting of the latest reports in the last three years is that the sectors like AI, technology, medicine, and all these different fields where you usually not relate, right, you know, Latinos to the growth are happening. And in the report, you'll see that in the case, for example, of AI, Latinos overindex, Latino businesses overindex in terms of use of AI compared to any others.

5:32Ana, I'm wondering about what this impact could be on the economy, because if we think about mass deportation, the images that we're seeing play out right now, what we're seeing happen in cities and around the U.S. right now, how does this affect workforce growth in the U.S.? Because Latinos have been the main force behind workforce growth in recent years. And even though a large portion, the majority of Latinos in the U.S. are U.S. born now. I think this could still have an effect.

6:03Ana Valdez:This has tremendous effects. And Tom, not only because, you know, of the actual happenings, but also because of the perception. Right. People, as you've seen, you know, people that have been here legally, people that are that are citizens are sometimes just generalized within this almost cohort profiling, right, of, you know, deportations, very, very focused on the Latino community. And you asked me, how does this affect? Well, just think about it. According to Department of Labor and the census, 78 % of all the new workforce in the next 10 years will come from the Latino community. So if you are thinking that, as you know, there is a lack of workforce in some of those industries already, right?

6:52Ana Valdez:In actually in all industries already, right? Before the pandemic, there were 11 million jobs not filled because of lack of workforce. After the pandemic, there were today, there are 6 million jobs not filled. So imagine without this workforce, or at least reduced this workforce, you know, and I don't know if you've seen it, but I'm sure you have. You know, we see we hear the the CEO of Target and the CEO of Constellation Brands and the CEO of Jack in the Box saying, what's happening? We need workers. We also need consumers. And last number, because you brought it up, 80 percent of Latinos, 81 percent of Latinos are American citizens.

7:38Ana Valdez:Nine percent are here with documents, which means green card and work permits and student permits. And only 9 % of Latinos are undocumented. But still, the way things are going, you know, this deportation movement is not limited to undocumented people. Well, let's talk about the job market before we let you go. Are there more jobs to be filled for the Latino community specifically? or is there more demand for jobs or more supply of workers than there actually are jobs to be had? Again, we go back to the numbers of Department of Labor, right? And of course, we've heard the industry, the dairy industry, and of course, the agricultural farmers, right, movements, the meatpacking.

8:31Ana Valdez:But also we hear we're, as you know, we're bringing engineers from other places, right? When you have the Latino cohort overindexing in growth in the engineering faculties in the United States. So, Emily, I think we're talking about a lack of workforce in general, but also a lot of opportunity from a community that is extremely young. The average age for Latinos in the United States is 12 years old. The average age of not Latinos is 58 years old. Oh, wow. So imagine how that's going to look in six years if the average age is 12. And another number that will be shocking is 30 percent of all births, according to the census, are Latino.

9:16It's a fascinating demographic story. It's one we're going to continue to follow. Ana, thanks for taking your time and for your patience this afternoon as we covered so much breaking news. Ana Valdez, president and CEO of the nonprofit, the Latino Donor Collaborative.

9:32When you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering, and claims experience. Learn more at thehartford.com slash risk mitigation.

10:07Policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same, the thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment. It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts.

10:39Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. Aging is real, and so are the benefits of adding Vital Proteins Collagen Peptides to your daily routine. New Vital Proteins Collagen Sparkling Water. Your daily glow up now in three fresh flavors. Strawberry blossom, lemon lime, and blood orange. Improved skin health in as little as 30 days thanks to collagen peptides. Cheers to that. Or go with our classic collagen peptides. So you can stay vital, stay you. Visit vitalproteins.com to learn more and where to buy. These statements have not been evaluated by the Food and Drug Administration.

11:12This product is not intended to diagnose, treat, or prevent any disease. Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com.