A new study by the UCLA Latino Policy and Politics Institute released Thursday found that despite Latinos being highly employable, they remained highly underpaid.
The State of Latinos in California report analyzed the U.S. Census Bureau’s American Community Survey data from 2019 to 2023. Included in the analysis were examinations of pay distribution, employment conditions, labor load and education rates of a demographic that makes up 39% of the Golden State’s labor force.
Here are some key takeaways from the institute’s findings.
General demographics
The median Latino worker is 30 years old, 12 years younger than the median age of their non-Latino counterparts, and 80% of all Latinos in California are U.S. citizens. Nearly 30% of Latinos in the state were under the age of 18, compared to 18% of non-Latinos. Additionally, 42% of Latinos were in the 18 to 44 age range, which was seven percentage points higher than in the non-Latino population.
Labor participation
Latinos participated in the workforce at higher rates than non-Latinos. Nearly 75% of Latino men engaged in the labor force, compared to 66% of non-Latino men. A similar pattern appeared among women, with 60% of Latinas participating in the workforce compared to 57% of non-Latinas.
Latinos also participated at a higher rate than any other group, regardless of citizenship status or gender. With a labor participation rate of 69%, noncitizen Latinos engaged in the labor force at a higher clip compared to 66% of Latino U.S. citizens, 61% of non-Latino U.S. citizens and 66% of non-Latino noncitizens.
Latinos face lower pay and a wage ceiling
Latino workers remained overrepresented in sectors with lower wages, fewer protections and limited upward mobility.
Latino men were more likely to work in construction (17% compared to 8%) and agriculture (5% compared to 1%) than non-Latino men. Meanwhile, Latinas were more likely than non-Latinas to work in retail (12% compared to 9%).
Workers in these sectors were less likely to be part of a union, which provides structured pay increases and health insurance, protection against unemployment and higher wages to employees. In 2024, only 18% of construction laborers and 8% of retail workers in California were represented by a union.
When belonging to a union, Latino workers were more likely to receive health insurance, retirement plans and higher wages.
Latinos were also underrepresented in higher-paying industries — such as health and scientific-related services, finance, insurance and real estate — which limited their opportunities for economic growth.
Noncitizen Latinos work more but earn less
The study noted that noncitizen Latinos participated at higher rates than both Latino U.S. citizens and non-Latino citizens in industries fundamental to California’s economy. Still, they earned less per hour.
Among Latinos, noncitizen laborers were more likely to work in construction (17% compared to 8%) and agriculture (10% compared to 2%) than those who have U.S. citizenship. Noncitizen workers represented 47% of Latino agricultural workers and 25% of Latino construction workers, meaning they are being employed in labor-intensive industries at higher rates compared to their U.S. citizen counterparts.
Wage disparities remained, especially for those Latinos without citizenship. Noncitizen Latinos earned a median hourly wage of $17, $3 less than Latino citizens ($20) and about half less than non-Latino citizens ($32) and non-Latino noncitizens ($33).
Latino education rates have increased, but higher wages remain elusive
Higher levels of education have long been a signifier for increased wages, and California Latinos have made significant headway in upping their rate of advanced degrees.
Younger Latinos were leading the way in educational statistics with 22% of Latinos aged 25 to 34 having a bachelor’s degree or higher, which was 12 percentage points higher than Latinos aged 65 and older. While making strides in education attainment, that same younger Latino age group was far behind the rate of non‑Latinos, 54% of whom have at least a bachelor’s degree.
Overall, only 16% of Latinos held a bachelor’s degree or higher, compared with 47% of non‑Latinos. At 18% having a bachelor’s degree of higher, Latinas outpaced their male counterparts in educational attainment by four percentage points.
While increased levels of education have led to increased wages within the demographic, Latinos were still paid less than their peers. Latinas with college degrees earned $31 an hour, which was $13 higher than the median pay for Latinas overall, but that hourly rate was $10 lower than the median of non-Latina women. College-educated Latino men made $36 an hour — $18 more an hour than Latino men overall — but $16 less an hour than non-Latino men.
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