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In the last presidential election, many Latinos gave Republicans and Donald Trump a chance to lead the country. Support was the highest among Latino men under 40. Economic concerns played a central role as Trump pledged to cut expenses, and many saw him as someone who could improve their financial situation.
The data, though, tells a different story. Inflation, stagnant wages, and rising costs are hitting middle- and lower-income Americans — particularly Black and Latino communities — the hardest. However, it is unclear whether Democrats can capitalize on this failure without effectively communicating an alternate economic vision that alleviates the problem.
During the 2024 election cycle, Trump promised that the economy would be his top priority. He said that from his first day in office, he would address inflation, gas prices, and affordability.
None of these campaign promises have come true. Inflation and grocery prices have risen, straining consumer wallets. Gasoline is over $4 a gallon.
Affordability is the “defining challenge” when it comes to economic mobility, according to a new report by the McKinsey Institute for Economic Mobility and the W.K. Kellogg Foundation. The survey of 30,000 Americans across income levels found that 90 percent of those polled cited groceries and food prices as a top cost concern, even over other key expenses, such as housing and healthcare.
In July, Trump’s approval rating on the economy stood at roughly 33 percent to 38 percent, with about 60 to 65 percent of Americans disapproving. These are historic lows for his presidency on an issue previously viewed as a core political strength.
Latino Economic Importance
Statistics show the U.S. Latino economy reached $4.4 trillion in 2024. This makes our community the fourth-largest economy in the world. Latinos drove 28.2 percent of all U.S. economic growth in 2024, showing that their impact is far bigger than their population share alone.
Latino income, spending, business ownership, and household formation are all growing quickly. U.S. Latino Gross Domestic Income reached $3.4 trillion in 2024, while Latino household consumption reached $2.8 trillion. From 2019 to 2024, Latino household consumption grew nearly three times faster than non-Latino consumption, and in 2025, Latino households accounted for 92.6 percent of all new household formation in the U.S., and 51 percent of Latino households were homeowners.
This growth is concentrated in specific places and communities: local Latino economies reached $1.1 trillion in California, $820 billion in Texas, $444 billion in Florida, and $329 billion in New York. In addition, Latinos of Mexican descent alone — 57 percent of all U.S. Latinos — account for $2.3 trillion of this economic output. The Latino economy is growing because of workers, consumers, entrepreneurs, and families building wealth over time.
Nearly 5 million Latino-owned businesses contribute over $800 billion to the U.S. economy annually. These businesses employ about 3 million workers.
Latinos account for one-fifth of the U.S. population. They are the fastest-growing workforce group, making up roughly two-thirds of the net labor force increase from 2003 to 2023.
Latino population growth is driven largely by births, not immigration. The population growth increased by 3.2 million between 2020 and 2024, while the non-Latino population declined. Signs suggest this growth is slowing, but it still outpaces the overall national average.
Loss of Economic Security
Although American families are experiencing economic challenges differently, many share a sense that rising costs are making it difficult to get ahead. The Latino community is suffering a disproportionate impact.
Rising Unemployment & Slowdown: The Latino unemployment rate climbed to 5 percent in November 2025, with job growth slowing to 64,000 in a recent report, lagging behind the national 4.6 percent rate.
High Cost of Living: 53 percent of Latino voters identified the high cost of living and inflation as top issues for government action.
Financial Insecurity: About one in three Latinos reported difficulty paying for food, medical care, or housing. Notably, full-time workers were as likely as the unemployed to struggle with costs, including 30 percent reporting issues paying rent or mortgages.
Impact of Policies: According to a November 2025 survey from the Pew Research Center, 61 percent of Latinos reported that Trump’s policies made the economy worse.
Tax and Trade Impacts: An analysis from Americans for Tax Fairness found that new tariffs and the expiration of tax credits increased the tax burden by $850 for most Latino families, while another report from them indicates that the Latino share of national wealth fell 20 percent.
Workforce Vulnerability: While Latina employment drove initial resilience, many families remained vulnerable due to high inflation, as documented in studies.
Buyer’s Remorse
Among Latinos who think the country is going in the wrong direction, nearly 70 percent say that elected officials should focus on addressing the high cost of food and basic living expenses. Latinos are viewing this as Trump’s economy, with 61 percent of independent Latino voters and 27 percent of Latino Republicans saying they blame Trump the most for the rising cost of living.
Whether the Democrats will benefit at the ballot box without visibly helping the Latino community is an open question. When asked what they think Democratic members of Congress should be doing, 60 percent say they should be fighting hard against the Trump administration and his policies. Half of Latinos believe Democrats would do best at addressing their top concerns, including 52 percent who want Democrats to address rising inflation and the cost of living.
Political leaders who hope to secure the support of the Latino community need to understand that Latinos’ economic stability varies by race, gender, immigration status, country of origin, and geography.
However, we share a desire for employment, access to education, affordable housing, healthcare, and a safe future. A political leader who enacts policies that improve our community’s economic well-being will earn back Latino support.
Mauro Morales is a retired attorney and civil rights leader who spent 25 years in federal service, most recently as Staff Director of the U.S. Commission on Civil Rights. He also served in the Obama Administration, including senior roles at the Office of Personnel Management, and previously worked in private practice and on Capitol Hill.
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What We’re Reading
U.S. Stake in Venezuela’s Oil: From the Washington Post, “The Trump administration is negotiating a long-term stake in a vast share of Venezuela’s oil fields, according to three people close to the discussions, a costly and legally precarious proposal that aims to nudge reluctant energy companies to drill in the risky region.”
Julio Ricardo Varela edited and published this edition of The Latino Newsletter.
The Latino Newsletter welcomes opinion pieces in English and/or Spanish from community voices. Submission guidelines are here. The views expressed by outside opinion contributors do not necessarily reflect the editorial views of this outlet or its employees.