If Latinos were to match their spending to their share of the population, Latino consumers would spend approximately $554 billion more than today.

In order to close this gap, employers and society must address both the income and the savings gaps between Latinos and their non-Latino White counterparts. The US economy would benefit greatly if companies provided more Latinos with job positions that include advancement or leadership opportunities.

By pursuing greater success, the Latino community has increased its share of professional roles to twenty-five percent. This represents a five-percentage point increase over the past decade. Despite this growth, Latinos still face barriers, in the workplace such as discrimination, implicit biases, or a lack of advancement opportunities. According to a recent McKinsey study, “if Latinos were represented at job levels in line with their share of the population, and paid the same as non-Latino Whites, they would receive an additional $281 billion in annual income that could be further deployed to drive economic growth.”

Latinos who save have only one-fifth of the median wealth of their non-Latino White counterparts. Today, almost fifty percent of Latinos have little to no retirement savings, and only twenty-three percent of Latinos are considered financially healthy in 2022. That is twelve percent less than non-Latino Whites. Despite these challenges, Latinos’ net wealth is continuing to increase at a larger rate than other groups – nine percent for Latinos compared to four percent for non-Latino Whites. As the gap continues to narrow, Latino households could reach an average net worth of $47,000 in 2023.

The Latino community holds approximately half as much debt as non-Latino White counterparts. This is due to Latinos having limited access to appropriate financial products and resources. Compared to their non-White counterparts, Latinos are 1.7 times more likely to be denied a loan. Furthermore, thirty percent of Latinos are unbanked or underbanked compared to twelve percent of non-Latino White. This gap presents a significant opportunity to financial institutions to serve a vast consumer market.

To read the full report, visit: McKinsey.com