One Year Later: Revisiting ‘Making Jobs Work for Latinas’ on Equal Pay Day

As we observe another Latina Equal Pay Day this October 3, we revisit the findings of our 2023 report, “Making Jobs Work for Latinas,” to assess the progress and persistent challenges facing Latina workers in the U.S. This day, which marks how far into the year Latinas must work to earn what their white, non-Hispanic male counterparts earned in the previous year, provides a timely opportunity to refresh our understanding of how Latinas are faring in today’s economic landscape.  

One year after our initial report, we continue to observe Latinas’ resilience in light of persisting barriers: nearly two-thirds of Latinos say they are very concerned about the increasing cost of living and housing costs. Many are worried about earning enough money to make ends meet, with more than half of Latinos concerned about paying next month’s rent or mortgage.  

At the same time, our follow-up analysis reveals that Latinas continue to play an increasingly vital role in the future of our economy. The economic output of U.S. Latinos has reached a staggering $3.2 trillion, rivaling the gross domestic product (GDP) of the world’s fifth largest nation. As a group, Latinas make up almost half of the economic output. Recent research shows Latinas hold a GDP of $1.3 trillion, their economic output growing larger than the entire economy of the state of Florida. By 2031, the number of Latinas in the workforce is expected to grow by approximately 26%. No other demographic group, including Latino men, is projected to grow by as much.  

Unfortunately, a persistent wage gap remains a significant concern. In the past year, the Latina pay gap has narrowed by one penny, with Latinas now earning 58 cents for every dollar earned by non-Hispanic white men. While Latinas may be doing their best to manage household finances, you can’t stretch 58 cents to cover what a full dollar could, no matter how financially savvy.  

A year later, Latinas are still unable to reap the full benefits of working. As we’ve previously reported, Latinas have the least access to employment-related benefits such as paid family and medical leave or paid sick days—which, in a crisis, can force them to choose between economic achievement and family obligation. Latinas are also the least likely of any group to have access to retirement benefits, maternity leave, health care coverage or other traditional employment benefits. Shockingly, nearly two-thirds of Latinas work without employer-based benefits. Despite their substantial and persistent economic contributions, Latinas—who live at the intersection of disparities associated with gender, race and immigration status—face a steep climb to economic prosperity.  

Still, Latinas have seen a year of progress in key indicators: 

• Latinas remain at full employment. The unemployment rate for Latinas has remained steady at 4.2%, typically considered full employment. In other words, every Latina able or willing to work is employed. Though Latinas’ unemployment rate continues to be higher than the national average, it represents the lowest unemployment levels for Latinas in decades.
• Workforce participation continues to grow. Since our report last year, approximately 1.3 million more Latinas have entered the workforce, totaling 13.9 million.  
• Latinas are keeping Main Street alive. The Stanford Latino Entrepreneurship Initiative estimates that Latinas own more than a quarter of all Latino-owned businesses in the United States. 
• Labor force participation rate (LFPR) outpaces the national rate. Our 2023 report highlighted that from 2010 to 2019, the Latina LFPR grew by 0.9 percentage points, contrasting with a national decline of 1.6 points. Today, Latinas continue to show the highest LFPR growth of 1.4 points from 2022 to 2023, compared to a modest national growth of 0.4 points. 

There’s more good news: policymakers have the power to create well-earned paths to prosperity for Latinas. Policymakers must ensure that Latinas can flourish by eliminating barriers and enacting policies to generate opportunity in four key areas. Specifically, such steps should include: 

• Fair Wage Policies. Latinos are concentrated in low-wage jobs and are disproportionately affected by an outdated minimum wage. Policies that raise the federal or state minimum wage, and eliminate the tipped minimum wage, are critical to create economic opportunities for Latinas. 
• Improvements to Tax Equity and Family Supports: Policies that expand coverage for existing tax benefits, like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), would assist Latina-led households by expanding the benefits and making them available to those with very low household income levels. 
• Fuller Access to Earned Benefits from Work: To harness Latinas’ full economic potential, policies that expand paid leave, support affordable and accessible childcare, and delink retirement plans from employment or make them portable are essential. 
• Improved Workplace Conditions & Protections: Latinas cannot thrive if their employment settings remain unpredictable and unsafe. Policies that ameliorate workplace conditions and protections include federal protections against sex-based wage discrimination, like the Paycheck Fairness Act, fair scheduling practices to provide more stable and predictable workplaces, expanded coverage of labor and workplace protections to cover the excluded labor groups in which Latinos are concentrated, and increasing federal enforcement of labor protections. 

As we look to the future, this one-year update underscores the importance of closing the wage gap as Latinas continue to grow in influence and economic output. Let’s close the wage gap now to ensure equal pay for equal work!