Demographics, They Are a Changin’

René Bryce-Laporte, Diversity Works

It is no secret that the demographic makeup of the United States is changing. Currently non-Hispanic whites consist of 60% of the US population but the US Census Bureau projects that we will become a majority-minority nation by 2045. It could happen a little faster or a little slower than that, but it will almost certainly happen. How will this change happen? And what does it mean? Here’s what you need to know.

First of all, the white population of the country, with a median age of 44, is much older than the nonwhite population. This is past the typical age for child-bearing. The average age of the nonwhite population is 31. The most common age of Americans varies greatly by race and ethnicity:

In 2045, 25 years from now, those white 58 year-olds will be well into their eighties. Asians, Blacks and Hispanics will be in prime working years with Hispanics solidly in child-bearing age. Already the millennial and Gen Z generations are nearly 50% non-white.

Furthermore, none of this accounts for immigration. Immigrants account for just shy of 14% of American population. More than half of all immigrants are Hispanic and another quarter are from South and East Asia. Over the last decade the largest number of immigrants have come from Asia. So immigration patterns are also pushing us ever more rapidly towards a less white population.

Change is coming and coming fast. Three key areas where an increasingly diverse population will create or demand significant societal change are: the customer base, workforce and leadership, and education.

A change in demographics will change the consumer marketplace. As the customer base for goods and services changes, suppliers of goods and services will need to adjust. They will need to have their finger on the pulse of wants and needs, which will not be uniform across racial and ethnic groups. They will also need to be increasingly sensitive to hot button issues. Companies will face even more backlash than they do today from increasingly diverse consumers for offensive or tone-deaf products and advertising.

To stay ahead of these changes, companies need to focus on and improve their performance on workplace diversity, equity, and inclusion at all levels. This is not just a matter for show, or even social justice, it is also important to the bottom line. Diverse leadership and staffing help companies understand the market and deliver what their customers want and need. Workers of color need to not only be on staff, but also in leadership. That means that it is not enough for companies to hire workers of color, they must also create an environment where workers of color receive the support and mentoring that they need to succeed.

Where will these workers come from? Most observers agree that tomorrow’s jobs will require more education not less. Our society will need to do a better job of successfully training and educating future workers of color. That means helping more students of color graduate from secondary and post-secondary schools alike. That may require better financing of K-12 systems and better financial support for post-secondary students. While nonwhite students in particular are entering college at higher rates, many are going into debt or dropping out because of financial hurdles, leaving them in a worse position than when they started. Holding college debt without a college degree is one difficult predicament.

Demographic change is inevitable and organizations that embrace the change will position themselves for greater success. A great place to start is for organizations to take an inward look at their leadership and staff composition, as well as the written and unwritten policies that affect workplace culture. It can be hard to take a hard look at yourself but it can help you anticipate and adapt to the change that is a comin’.