Latino Workers Sustain California’s Economy, But Their Wages Don’t Reflect It

The UCLA Latino Policy and Politics Institute, known as LPPI, published an analysis in March 2026 showing that Latino workers in California represent 39% of the workforce. However, they earn significantly lower wages than their non-Latino counterparts.

Latina workers earn a median wage of $18 per hour compared to $35 for non-Latino men, according to data from the 2019-2023 Census. New state laws SB 464 and SB 642, effective since January 2026, seek to improve wage transparency and pay equity enforcement. However, their real impact will take years to be reflected in the data.

What Is the Size of the Wage Gap for Latino Workers?

The LPPI’s State of Latinos in California, 2026 report, based on 2019-2023 Census figures, places Latinos at 39% of the state’s workforce, approximately 7.8 million people. The institute’s primary comparison shows that Latina workers earn a median wage of $18 per hour. Non-Latino men, by contrast, earn $35, less than double.

Looking at wages within the same gender, the story is similar. Non-Latina women earn $29 per hour compared to $18 for Latinas. And non-Latino men earn $35 compared to $20 for Latino men. In each comparison, Latino workers fall at the lowest level.

The disparity is more acute for non-citizen workers. LPPI data shows that non-citizen Latinos participate in the workforce at approximately 69%. This is a higher rate than Latino citizens (66%), non-Latino citizens (61%), or non-Latino non-citizens (66%). However, they receive the lowest pay of all these groups. Non-citizen Latinos earn a median wage of $17 per hour, compared to $20 for Latino citizens and $32 for non-Latino citizens.

What Sectors Do Latino Workers Primarily Work in California?

Much of the gap stems from the jobs Latino workers occupy. Latino men work in construction at approximately double the rate of non-Latino men, 17% versus 8%, and in agriculture at five times the rate, 5% versus 1%. Latina women are overrepresented in retail trade at 12%, compared to 9% for non-Latina women.

Unions have little presence in both fields. The LPPI cites a labor analysis from UCLA and UC Berkeley showing that construction workers were unionized at 18% in 2024 and retail workers at only 8%. This is a gap researchers say weakens workers’ bargaining power even as these jobs continue to grow.

Home care follows a comparable pattern specifically in Los Angeles County. A motion by the Board of Supervisors approved in September 2025 increased pay for In-Home Supportive Services, known as IHSS, to $19.64 per hour. The change is effective January 1, 2026, a county-negotiated supplement of $0.74 added to a state minimum wage increase. Together, adding $1.14 results in the prior rate