While demographics are generally predictable, they tend to be ignored or not viewed as an asset to my business. In fact, they are as evidenced by key trends:
The population is growing very slowly and getting older. In the 1950’s the population grew at a rate of 1 to 1.5 % accelerating economic growth. Aging population, less immigration, stable death rates, and lower and older birth rates have all contributed to the decline. While immigration is an obvious remedy, politics seems to have disrupted considerations of proposals.
The over 65 population grew from 13 to 16 % from 2010 to 2021.They also control over 85 % of the wealth in this country. An underestimated aspect is that they don’t fit stereotypes and are a highly diverse group. For example, in 2019, one in five people in Maine, Florida, West Virginia and Vermont were age 65 or older. In contrast, Utah had only 11 % and Washington D.C. only 12 % over age 65. Similarly, they are working longer, living longer, enjoying more leisure activities and needing extra care at older ages
The most rapidly growing segment are the over 62 million Hispanics which grew from 16 % to 19 % of the U.S. population between 2010 and today. However, the totals hide some the trends and details. A majority of Hispanics live in the states of California, Texas, Florida and New Mexico.
The median age for Hispanic Americans is 29.8, nearly nine years lower than the median age of 38.5 for the entire US population. About 8% of the Hispanic population is over 65, compared to 17% of the total population. Thirty-one percent of Hispanic Americans are under 18, compared to 22% of the nation. Thus,3 % of Maine population over 65 is Hispanic while 59 % of Texas population under 18 is Hispanic. Currently whites represent less than 50 % of births and in a few years will represent less than 50 % of the population.
Women are becoming an increasingly important part of the labor market. Since the 1950’s they have grown from about 28 % of the labor force to 47 %. Technology, education, equality, child care and psychology have contributed to the growth. However, the trends will continue. Women are about 50 % of college graduates which will continue to accelerate their growth in the hierarchy.
Women are also becoming more prominent so that accommodations like pre-K, child care, work from home are making more available to work. Both legal and social norms are making it more comfortable for women in the working environment. Remember when there was no place in the Senate for Tammy Duckworth to nurse her baby. Women’s locker rooms, facilities and treatment still need upgrades. Many were surprised recently when the Coast Guard which says it is trying to recruit more women, acknowledged that they had hidden sexual harassment complaints to protect officers.
Today’s demographics, however, are far more diverse than those during the baby boomer generation and often require different approaches from businesses large and small. 85 percent of the country's recent population growth has taken place in the South and the West. This diversity also includes different factors like sexual orientation, geography race and social factors. For example, young adults are marrying later and having fewer kids.
Ignoring demographic trends will be costly. Make certain to constantly evaluate relevant demographic trends as they relate to your business both in now and in the future. The opportunities like being more accommodating to women, older workers and Hispanics can be especially productive. Make demographics one of the keys to your business’ success. or failure.
Related: Basic Logic Can Improve Success