future demographic changes and their impact · employment and occupations medium term (10-year)...
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Future Demographic Changes and Their Impact
Erica L. Groshen Commissioner of Bureau of Labor Statistics
U.S. Department of Labor
Howard Hogan, Ph.D. Chief Demographer US Census Bureau
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Labor Force Trends and Projections
Erica L. Groshen
Commissioner of Bureau of Labor Statistics U.S. Department of Labor
Speaking with One Voice: Connecting the DOTs
2015 Civil Rights Symposium February 5, 2015
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About Bureau of Labor Statistics
Independent federal statistical agency in Department of Labor
Mission: Principal agency responsible for tracking labor market activity, working conditions, and price changes Support public and private decision-making Serve diverse users by providing products and services that are
accurate, objective, relevant, timely, and accessible
Vision: Meet information needs of a rapidly changing U.S. and global economy by Continuously improving products and services Investing in work force Modernizing business processes
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Employment Projections Program
Product: Estimated trends for labor force, employment and occupations
Medium term (10-year) projections every 2 years Latest--2012- 2022 projections
For whole nation, by industry and occupation State labor market information offices develop State-level
projections
Why do this? To help People choose careers Education and training officials track future workforce needs
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Presentation overview
Source of our projections
Overview of national trends in population, labor force and labor force participation rates
Risks to projections and challenges ahead
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BLS labor force projections reflect two factors
Labor Force = Population * LFPR Population = US residents
– By age, sex, race, ethnicity
Labor Force Participation Rate (LFPR) =
Share of people who are active in labor market
– By age, sex, race, ethnicity 6
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Inputs to projections
Population
Census Bureau projections
Labor force participation rate Sum of employed workers and unemployed job
seekers BLS projections Based on recent trends in Current Population Survey
– Monthly survey of about 60,000 households – Source of key indicators, including labor force
participation rate and unemployment rate 7
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Population and labor force are growing
217.6
144.9
243.3
155.0
265.3
163.5
Population age 16 and over Labor Force
Millions of persons
2002 2002 2012 2012 Projected 2022 Projected 2022
Data Source :U.S. Census Bureau and Bureau of Labor Statistics 8
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Population and labor force growth rates are declining
1.8% 1.8%
1.1% 1.2% 1.1%
0.9%
2.1%
2.4%
1.5%
1.2%
0.7% 0.5%
1962-72 1972-82 1982-92 1992-2002 2002-12 Projected2012-22
Civilian non-institutionalpopulation aged 16 andoverLabor Force
Annual rates of change
Data Source: U.S. Census Bureau and Bureau of Labor Statistics 9
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Labor force participation rates are declining
82
70.2 67.6
58.8 63.7 61.6
37.9 57.7 [VALUE].0
0
20
40
60
80
100
1962 1972 1982 1992 2002 2012 Projected2022
Percent
Total
Men
Women
10 Data Source: Bureau of Labor Statistics
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Demographic trends Baby boomers: As large cohort ages into retirement,
overall LFPR declines Women: After decades of growth, LFPR peaked in
1999 and decreased since then Men: LFPR declining since 1940s Teenagers and youth: LFPR decreasing for several
decades Prime age: LFPR declining slightly 55-years-and-older: LFPR increasing since 1996
Lingering effects of Great Recession
Why participation has been declining lately
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Labor force is getting older
15%
22%
26%
23%
14% 2002
14%
21%
21%
23%
21% 2012
11%
23%
21%
19%
26%
Projected 2022
16 to 24
25 to 34
35 to 44
45 to 54
55 and older12
Data Source: Bureau of Labor Statistics
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Labor force change by age group: projected 2012-22
-2,823
3,321
2,076
-3,454
3,607
5,749
16-24
25-34
35-44
45-54
55-64
65+
In thousands of people
13 Data Source: Bureau of Labor Statistics
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Youngest workers shrink most while oldest workers grow fastest
-13.3%
9.9%
6.3%
-9.9%
14.6%
74.4%
16-24
25-34
35-44
45-54
55-64
65+
Total labor force growth= 5.5%
14 Data Source: Bureau of Labor Statistics
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Labor force will be more diverse by race
12% 5% 3%
80%
2012
BlackAsianAll otherWhite
12% 6% 4%
78%
Projected 2022
15 Data Source: Bureau of Labor Statistics
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Labor force will be more Hispanic
84%
16%
2012
81%
19%
Projected 2022
Non-Hispanic
Hispanic
16 Data Source: Bureau of Labor Statistics
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Labor force growth lowest for non-Hispanics and whites
23.8%
10.0%
2.6%
30.7% 27.8%
1.3%
Asian Black White Other Hispanic Non-Hispanic
Overall labor force growth=
5.5%
Projected 2012-22
17 Data Source: Bureau of Labor Statistics
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6.8
1.7
-2.5 Hispanic Non-Hispanic White non-Hispanic
More Hispanics joining labor force than non-Hispanics
Change in millions, projected 2012-22
18 Data Source: Bureau of Labor Statistics
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1.9 1.8
3.2
1.4
Asian Black White Other
Majority of additions to labor force will be non-white
Change in millions, projected 2012-22
19 Data Source: Bureau of Labor Statistics
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Period of demographic change ahead
What we project for U.S. economy Slowing population and labor force growth Declining participation rates Retirement of baby boomers Increasing diversity of U.S. workforce
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Risks to projections BLS projections rely on
Understanding history Using understanding to project the future
We do not factor in “unknowns” Unanticipated disruptions--e.g., new wars and
natural disasters Changes in current laws and policies regarding
– Social Security and Medicare – immigration
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Summary Labor force of the future (2022) will be
Older More racially and ethnically diverse
Labor force will grow more slowly Baby boomers retire Labor force participation rates decline
BLS labor force, industry and occupational employment projections can help guide training choices Visit www.bls.gov
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Projecting Diversity: The Methods, Results, Assumptions and Limitations of
the U.S. Census Bureau’s Population Projections
Howard Hogan, Ph.D. Chief Demographer US Census Bureau
Prepared for the
2015 U.S. Department of Transportation Civil Rights Virtual Symposium
Future Demographic Changes and Their Impact
THE VIEWS EXPRESSED ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THOSE OF THE US CENSUS BUREAU
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Outline Introduction 2014 Projections: Results Demographic Assumptions Issues in projecting diversity Learning more
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Outline Introduction 2014 Projections: Results Demographic Assumptions Issues in projecting diversity Learning more
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The U.S. Office of Management and Budget (OMB) is responsible for issuing standards for the classification of federal data on race and ethnicity.
OMB’s standards include: 2 minimum categories for data on ethnicity 5 minimum categories for data on race
OMB Directive No. 15 first issued in 1977 &
revised in 1997
Understanding the OMB Race and Ethnic Standards
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Modifying Responses of "Some Other Race"
The Census Bureau developed a procedure to assign an OMB race to those who reported "Some other race” because of needs to have data comparable with the reporting categories used by state and local agencies and for compiling other administrative data used in producing population estimates and projections.
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Minority Population as a Percent of county Population 2013 MAP
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Ten Largest “Minority/Majority” Counties
2013 Population Estimates Population in Millions
% “Minority” Los Angeles 73 Cook 57 Harris 68 San Diego 53 Orange 57 Miami-Dade 85 Kings 64 Dallas 68 Queens 73 Riverside 62
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Outline Introduction 2014 Projections: Results Demographic Assumptions Issues in projecting diversity Learning more
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Projection Groups 5 race groups “Alone” 5 race groups “Alone or in
combination” Two or more races Each by: Hispanic / Non-Hispanic Available at Census.gov
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Population Growth in Millions
2014 2044 % Growth TOTAL 319 388 22 White 247 278 12 Not Hispanic 198 193 -3 Black 42 54 28 AIAN 4 5 31 Asian 17 32 85 NHOPI 1 1 45 Two or more 8 18 128 Hispanic 55 97 76
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Proportional Growth
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Percent Distribution by Group
Percentage Change Total 100 100 White 77 72 -6 Not Hispanic 62 50 -12 Black 13 14 1 AIAN 1 1 0 Asian 5 8 3 NHOPI 0 0 0 Two or More races 3 5 2 Hispanic 17 25 8
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Five Mutually Exclusive Categories
Black Asian, NHOPI & AIAN Two or more races White Hispanic White non-Hispanic
Used here only for purposes of discussion.
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Total Population Millions: Black
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Total Population Millions plus Asian, NHOPI & AIAN
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Total Population Millions plus Two or More Races
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Total Population Millions plus White Hispanic
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Total Population Millions Total
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Population 16 and Over by Group
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Total Population Percent
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Voting Age Population Percent
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Prime Working Age Population Percent
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School Age Population Percent
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Pre-school Population Percent
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Hispanic Population Percent of Total
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Hispanic Population Percent of “Minority”
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Outline Introduction 2014 Projections: Results Demographic Assumptions Issues in projecting diversity Learning more
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Demographic Assumptions
Pop(t) = Pop(0) – Deaths + Births – Out-movers + In-movers Population = Survivors + Births + Net-native immigration + Net-foreign immigration
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Mortality Assumptions
Age-specific death rates decreases slowly
For most ages, high confidence of accuracy, baring major war or epidemic.
Issues mainly concern older ages
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Fertility Assumptions Age specific rates decreases slowly
Reasonable confidence based on trends throughout the developed world.
Can be influenced by changes in economic and social conditions.
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Net Native-born Migration Assumptions
Small component Close to zero in long run Some net movement expected from Puerto Rico and other territories.
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Net Foreign Born Immigration Assumptions
Based on the population of sending regions. Expected to grow as sending populations grow. Very hard to predict levels and origins Historically subject to large & unexpected surges.
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“Cross over Date” from Recent Projections
2008 Series Low 2045 High 2040 “Constant” 2050
2012 Series Low 2045 High 2041 “Constant” 2046
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Outline Introduction 2014 Projections: Results Demographic Assumptions Issues in projecting diversity Learning more
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Cohort Growth of “Both White & Black”
Age in 2000 % Growth Total 31 Under 5 28 5 to 9 28 10 to 14 22 15 to 19 30 20 to 24 48 25 to 29 50 30 to 34 49 35 to 39 53 40 to 44 52 45 to 49 48 50 to 54 34 55 + 10
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Issues in projecting the Hispanic population
Immigration Sensitivity to question wording Assigning Race Effects of inter-marriage
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Question Wording
Census 2000 Question: Is this person Spanish/Hispanic/Latino?
Census 2010 Question: Is this person of Hispanic, Latino or Spanish origin?
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Assigning Race CENSUS ESTIMATES BASE White alone 72.4 78.4 Black alone 12.6 13.0 AIAN alone 0.9 1.2 Asian alone 4.8 4.9 NHOPI alone 0.2 0.2 Two or more races 2.9 2.3 Non-specified race only 6.2 (X)
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Issues in projecting the Hispanic population: Husband/Partner of Hispanic Women
Percent
All 21 US Mainland born 37 All Other 11 Currently married Hispanic women (w spouse present), who are the householder or spouse of householder ACS 2013 1-year data. Born in Puerto Rico included in All Other
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Forecasts of the Population of the United States 1945-1975
Whelpton, Eldridge & Siegel 1947
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1966 Population Projections Group Number Percent 308,912 White 270,770 87.7 Non-White 38,142 12.3
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1988 Population Projections
2000 2050 Total Spanish Origin 9.4 16.4 White Non-Hispanic 74.2 61.6 Black 13.3 16.9 Other Races 3.6 6.1
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2010 Experimental Streamlined Combined Question
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Other Possibilities
Will “Middle-Eastern &North African” still be classified with European as “white” or have its own category?
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Outline Introduction 2014 Projections: Results Demographic Assumptions Issues in projecting diversity Learning more
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Census.gov Drop Down
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http://quickfacts.census.gov/qfd/states/29/2923986.html
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Quick Fact Results
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Active Labor Force by disability status
Number % of Total Total Employed 150.2 With a disability: 8.4 6 No disability 141.7 94
Source: AFF ACS_13_1YR_B18121
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