The buying power of Idaho’s largest minority grew faster in 2008 than the buying power of Hispanics nationwide and faster than the state’s non-Hispanic population.
The Selig Center for Economic Growth at the University of Georgia estimates the buying power of Idaho’s non-Hispanic population rose 7 percent, a half percentage point more than growth nationally, but Idaho’s Hispanic buying power jumped another 11.3 percent, a full percentage point more than Hispanics nationwide.
That increase came on top of a 9 percent gain in 2007 to give Hispanics 5.3 percent of Idaho’s buying power in 2008 – an estimated $2.33 billion from a total of $43.9 billion. In 2007, Idaho Hispanics controlled 5.1 percent of all buying power. In 1990, Hispanics had just 2.8 percent of the buying power.
The increasing economic influence of Idaho Hispanics reflects both their rapid population growth and their advancement up the earnings ladder as they become more and more integrated into Idaho’s social fabric.
“Hispanics have rapidly become a major contributor to Idaho’s economy and the diversity of its businesses,” Idaho Department of Labor Director Roger B. Madsen said. “Their increasing influence benefits every Idahoan and every community, both economically and socially.”
Buying power is the after-tax personal income people have to spend on virtually everything from necessities like food, clothing and housing to luxuries like recreation equipment and vacations. It does not include money that has been borrowed, saved from previous years or spent by tourists from other states or countries.
The Selig Center forecasts that the economic influence of Hispanics will continue growing through the current recession and beyond. By 2013, the center estimates Hispanic buying power in Idaho will jump another 51 percent, a third faster than the non-Hispanic side of the economy, to exceed $3.5 billion. That would account for 6 percent of all the buying power in Idaho.
The full report “Idaho Hispanic Buying Power 2008” is available online at http://labor.idaho.gov/publications/hispanicbuyingpower2008.pdf.