As the city tightens its budget, Latino workers and small businesses stand to gain — if promises turn into policy
As Los Angeles confronts a tightening budget, rising homelessness costs, and pressure on basic services, the city is also preparing to host two of the world’s largest sporting events: the 2026 FIFA World Cup and the 2028 Summer Olympics. Supporters argue these events could inject billions into the local economy. Critics warn they could deepen fiscal stress if benefits are uneven or short-lived.
For Latino communities — who make up nearly half of Los Angeles County’s population and a large share of its service, construction, and small-business workforce — the stakes are especially high.
A City Under Financial Pressure
Los Angeles is entering this global spotlight amid serious challenges: slowing tax revenue growth, escalating housing and homelessness expenditures, and long-term pension obligations. City leaders have repeatedly acknowledged that future budgets will require difficult tradeoffs.
Mega-events won’t solve these problems on their own. Economists have long cautioned that large sporting events often overpromise economic returns, with costs frequently exceeding projections. Research cited by the Brookings Institution and the University of Oxford’s Olympic Studies Centre shows that host cities rarely see direct profit.
But Los Angeles is structured differently than past hosts. Unlike Qatar or Rio, LA will rely largely on existing venues, reducing the need for massive new stadium construction — a key factor in controlling costs.
Where Latino Communities Stand to Benefit
Latinos are deeply embedded in the sectors most directly affected by these events: hospitality, food services, transportation, construction, logistics, and small retail. According to the UCLA Latino Policy and Politics Institute, Latino workers already make up a disproportionate share of LA’s tourism and service economy.
The World Cup and Olympics are expected to:
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Generate hundreds of thousands of temporary jobs, many accessible without advanced degrees
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Increase revenue for Latino-owned small businesses, from restaurants to transportation services
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Accelerate infrastructure upgrades — transit, sidewalks, broadband — in working-class neighborhoods if equity commitments are enforced
“Large events don’t automatically lift communities,” urban economist Victor Matheson has noted in prior research, “but when cities prioritize local hiring and small-business access, the gains can be real.”
The danger for Los Angeles is not overspending on stadiums, but failing to convert global attention into lasting local benefits. Without strict accountability, contracts and tourism dollars can bypass the neighborhoods doing much of the work.
For Latino Angelenos, these events represent a rare moment: global investment colliding with local economic need. Whether that moment becomes a burden or a bridge will depend less on the games themselves — and more on who gets included when the money starts moving.
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