The number of Hispanics in the United States reached 20 million in 1988, a 34% increase since 1980, reflecting growth that challenges U.S. policymakers in nearly every area, but most urgently in education, job training, and welfare. There is considerable diversity within the U.S. Hispanic community, but Mexicans, Puerto Ricans, Cubans, and other Latinos share backgrounds from a Spanish-speaking country. U.S. Hispanics have a relatively lower median age and have larger families than non-Hispanics, two factors that help create momentum for future growth. Hispanics have long been a disadvantaged minority, handicapped by low levels of education and ethnic discrimination. The average 1987 household income for Hispanics was two-thirds that of other Americans. The quality of the future U.S. labor market will be jeopardized unless Hispanics improve their education and job skills. Most agree that improving the plight of the Hispanic population must begin with schools, but people disagree about the most effective approach. The growing Hispanic population constitutes a burgeoning consumer market for American businesses and could provide a competitive advantage to U.S. corporations in Latin America. The emergence of the Hispanic voter has been a major factor in U.S. politics and may shift the political priorities in some areas. Although there will be exceptions, there is little indication that the position of U.S. Hispanics will improve during the 1990s. Indicators underscore the need for policies to break this cycle of underachievement and poverty. This document contains photographs, graphs, 17 footnotes and 5 references. (TES)