NEW YORK CITY - Hispanics and Latinos are the fastest growing minority in the United States, a new report by Collage Group reveals in a recent study. The company, which focuses on minority research, found that the multicultural population in the United States is growing fast in size and diversity, with people of this demographic being major players in this trend.
"Hispanics have always been such an influential segment across fashion, sports, and really every category that you can think of," Sudupti Kumar, Director of Multicultural Insights at Collage Group said in an interview with The Latin Times. "That is going to continue, they drive culture in this country and as they grow in size and purchasing power, you cannot ignore their power and influence in the U.S."
The Hispanic population in the U.S. has grown to 63.5 million people in 2023, comprising around 20% of the country's population, the report found.
But despite the clear growth in population, Latinos still face a great deal of challenges.
Disparities in income, employment and education status still remain high between Latinos and Black Americans compared to Asian and White Americans. However, the former groups have seen some growth lately.
Asian and White Americans remain the highest earners in the U.S. by race and ethnicity, with a real median household income of about $108,700 and $81,000 respectively in 2022. Meanwhile, Hispanic and Black Americans saw a $62,000 and $52,000 real median household income in the same year.
These differing incomes can be attributed to a variety of factors. Types of jobs and industries, highest-earned degree and household size are all pointed out as driving characteristics for these numbers, Kumar mentions. But there is a historically overarching theme that seems to be taking the lead when it comes to defining the livelihood of these minorities.
"These challenges have existed for many years, there's a lot of reasons for that, systemic racism being a key one," Kumar said. "That is something that we continue to see, and will probably continue to see on some level in the future."
However, regardless of these clear setbacks, there are also rising opportunities for Hispanics in the U.S.
Hispanics are the fastest growing segment with purchasing power and expenditures. The group's buying power grew to $2.1 trillion in 2022, compared to $1.9 trillion in 2020. This trend can contribute, not only to the growth of the national economy, but also highlight the importance of Hispanics for the country's wellness.
"[Hispanics] are becoming the mainstream. Their influence in the economy is substantial and it is growing significantly, " Jenni Wolski, a senior analyst at Collage said.
Trends of this nature are noteworthy, particularly as the U.S. ventures into presidential elections season. For months now, Congress and the White House have been at odds looking, not only at immigration policies, but also at budget allocation. Studies like this one can help politicians look at their constituents' demographics and best serve their needs.
"We know that multicultural Americans tend to lean more liberal than white Americans, but we do see changes in this depending on acculturation," Wolski said.
The analyst adds that in the research, they asked Hispanics what political party they most closely align themselves with, to which about 20% said none.
"That really matters, it means that they are not fitting into a specific box of what political parties want them to believe in" Wolski said. "This is substantial because it tells us that the way the system is working now doesn't align with their needs, and so understanding how political parties can better communicate with these segments is going to be very substantial and important [in these elections.]"
Looking ahead, increased diversity can be expected in the demographics of the U.S. From sexuality, to ethnicity and race, intersectionality will be a key component at the American populations in the coming years, the researchers predict.
"These intersections are such an important part of Gen Z, our youngest generation, so what is going to be really interesting is to see how society evolves to support this rich diversity in our country," Kumar said.
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