HispanicBusiness

During the past quarter century, immigration propelled much of the U.S. Hispanic population growth. In 1980, 34.9 percent of Hispanics were born outside the United States. By 2000, that share had risen to 40.1 percent. Looked at from another perspective, of the 20.8 million increase in the U.S. Hispanic population between 1980 and 2000, immigration accounted for 43.8 percent, second-generation births accounted for 28.4 percent, and third-generation births represented the remaining 27.9 percent. Though future immigration trends are hard to predict, overall U.S. immigration probably reached its peak in the late 1990s, with Hispanic immigration following this trend. At its height, approximately 751,000 Hispanics entered the United States annually, comprising 48.8 percent of the total immigrant influx. While immigration has represented a fundamental source of Hispanic population growth, internal dynamics indicate that, over time, the U.S. Hispanic market will lose its immigrant character and meld with the mainstream culture. The main driver behind this change is the rise in number of second- and third-generation U.S. Hispanics. The second generation, with its low median age of 12.7 years and its high fertility rate, will lead this shift in the composition of the U.S. Hispanic market. Projections by the Pew Hispanic Center show that by 2020 nearly half (47.0 percent) of the growth in the U.S. Hispanic population will come from the second generation and another 27.5 percent from the third generation. With the ascent of the second generation, immigrants will account for only a quarter of all new U.S. Hispanics by 2020. Growth of the second generation will transform the structure of both the Hispanic market and the U.S. economy. For example, while growth in the non-Hispanic labor force is slowing because of fewer young workers in an aging workforce, the Hispanic labor force is expected to expand by 77 percent from 2000 to 2020 In addition, Hispanics currently hold the highest labor force participation rate at 68.7 percent as compared to the White, Black, and Asian percentages of 66.5, 64.1, and 66.2 respectively. As consumers, second-generation Hispanics tend to have greater English proficiency, higher levels of education, and more income potential than first-generation immigrants do. However, acculturation patterns in specific markets will vary based on proximity to countries of origin.
































The Hispanic Economy in Transition and other HispanTelligence Research can be purchased online at the Hispanic Business Store