Economic Impact of Latinos Abroad

The Mexican diaspora represents a substantial and dynamic component of the global workforce, with implications for business strategy, labor markets, and economic growth. While over 11.2 million Mexicans reside outside of Mexico, with approximately 80% of them living in the United States, representing roughly 10.82 million, the Mexican population in the United States has contracted by 7% since 2019, reflecting demographic shifts and migration policy dynamics.

The Mexican government manages mobility and diaspora matters through three primary channels: the Institute of Migration, Consulates, and the Institute of Mexicans Abroad, providing oversight and support for migrant communities worldwide. Within the United States, Mexicans predominantly originate from Guerrero, Michoacan, and Oaxaca, she adds, highlighting the regional origins that influence labor patterns, community networks, and economic contributions.

Mexican immigrants in the United States play a critical role in the labor market, especially in construction, manufacturing, accommodation, and food services, with construction remaining the largest employer. Despite some recent challenges, including declines in employment and wages in the food and hospitality sectors, Mexican workers continue to drive economic activity. Clouthier points out that Mexicans living in the United States make a significant contribution to the country’s GDP, underlining their economic relevance. 

Fiscal and entrepreneurial contributions of the diaspora are also notable. Latino-owned businesses in the United States have expanded substantially in recent years, and undocumented immigrants contribute billions in taxes through ITIN filings. These contributions, coupled with participation in key industries, position the Mexican diaspora as a critical economic driver in multiple regions.

Education and skill development are increasingly prominent within the diaspora. Tatiana Clouthier, Head, Institute of Mexicans Abroad, observes that Latinos in the United States increasingly obtain university degrees and occupy advanced positions, positioning them to participate in knowledge-intensive industries and support innovation-driven growth. This trend enables businesses to access a more skilled and diverse workforce capable of contributing to higher-value sectors.

In parallel, attention to mental health has become a critical concern for Mexicans abroad. According to Clouthier, “the need to take care of mental health has steadily increased since COVID-19. To help Mexicans living abroad, we developed an app that uses AI to support migrants,” she added at Mexico Business Summit 2025. These initiatives illustrate innovative approaches to community well-being and workforce resilience, which can indirectly enhance productivity and engagement for businesses leveraging diaspora talent.

In summary, the Mexican diaspora plays a pivotal role in shaping labor markets, entrepreneurship, and economic growth across multiple regions. For companies operating in North America and beyond, understanding these dynamics provides a foundation for strategic workforce planning, talent development, and inclusive business strategies that leverage the economic potential of Latinos abroad.