Our Increasing Dependence On Others
Demographers segment the world population into six living
generations: GI (born 1901-1926), Mature/Silents (born 1927-1945), Baby
Boomers (born 1946-1964), Generation X (born 1965-1980), Generation
Y/Millennials (born 1981-2000) and Generation Z (born after the middle
to late 1990s). Additionally, Australian demographer Mark McCrindle
coined a seventh living generation: a post-Z “Generation Alpha,”
representing those born after 2010 up through the coming years to
2025.
All the generations can expect to live longer lives. According to recent
indicators from OECD, the average life expectancy in the U.S. is now 78.6
(up by about ten years since the late 1950s and early 1960s).
Longer life spans signify that we will extend our work lives as well as
increasingly draw from the social security government trust and from
other social and economic resources. How will this affect our nation’s
labor force in the relative near term? By looking at population and labor
force statistics together with data about generational changes, one can
get a sense of how the future of work might shake out over the next
several decades.
Minority Population Growth a Key Indicator
Generation Alpha, for instance, has already reached an important
milestone that has numerous implications on future workforce
development. In 2011—only their second year on the planet—they
encompassed a first-time demographic of more newborns in families of
minorities than whites. Minorities currently have, and will continue to
have, higher fertility rates than whites. According to William H. Frey,
author of Diversity Explosion, “the percentage of white women who are
in their childbearing years is declining and is smaller than the
percentage of such women in other, ‘younger’ minority groups. Both of
these trends are likely to continue and should translate into smaller
numbers of white births over time. The population of whites, in fact, is
aging more rapidly than that of other racial groups.”
Frey calls Generation Alpha and its sibling Generation Z, “a huge
demographic force. We are really going to absolutely be dependent on
these young people for our future.”
He explains that by 2020, 40 percent of the population will be racial
minorities, and more than half of the population under 18 will be racial
minorities, adding that by 2023, whites will total less than half of the
U.S. population under 30. Overall, this new minority demographic is
estimated to comprise 56 percent of the total U.S. population by 2060,
compared with 38 percent in 2014, as reported by NPR. What this all
means from a workforce perspective is that as Baby Boomers filter out
of jobs into retirement and gradually lose their social and business-
oriented dominance, jobs will need to be filled within the hierarchy of
business and industry by younger, exceedingly multi-racial, and often,
at least by today’s standards, statistically low-income and less-educated
minorities.
Another Generational Divide on the Near Horizon
In a recent Op-Ed piece in the Los Angeles Times, Frey called this
demographic trend the beginning of a future generational divide
between Gen Alpha/Gen Z and Baby Boomers. “I tried to show how
ironic it is that today’s Baby Boomers are the same people who used to
say ‘don’t trust anyone over 30.’ Now the shoe is on the other foot.”
As he elucidates in Diversity Explosion, the divide will present gaps
relative to economic and political interests—in other words, issues
related to whether or not government funds should support youth or
seniors could become prominent, such as decisions about increased
funding for K-20 education and workforce training as opposed to senior
health care. “The cultural generation gap between the young and the
old can exacerbate the competition for resources because the rise in
the number of senior dependents is occurring more rapidly among
whites than among minorities, for whom dependent children is a larger
issue,” Frey writes. “These contests may evolve into culture clashes.”
Gen Z (who are everyone currently under the age of 21) as well as
Millennials (who are also more diverse than their predecessors) also
need to be considered when referring to a looming generation divide
and tomorrow’s dramatically changing workforce. Forty-five percent of
Gen Z, for instance, believe that working with boomers will be
challenging, “compared to 17% who anticipate difficulties with Gen X
and 5% with Millennials,” writes Dan Schawbel, partner and research
director at Future Workplace, in his blog.
According to a 2011 poll by Pew Research, both Boomers, and especially
Silents, do not fully embrace diversity. “Fewer in these groups see the
increasing populations of Latinos and Asians, as well as more racial
intermarriage, as changes for the better.”
Must-Have Tax Contributions
Despite such differences, Frey says he is hopeful. He explains that “the
solvency of government-supported retirement and medical care
programs is directly dependent on the future productivity and payroll
tax contributions of a workforce in which minorities, especially
Hispanics, will dominate future growth.” Out of necessity, the older
generations will fully support education and workforce training needs
of their much younger minority generations.
He adds that the places where workers will be needed most are not
urban areas, but instead rural areas and smaller cities, where so-called
brain-drains of young people are common. “Those are the places that
need to be aware of younger people of different backgrounds, speaking
different languages. We need to make sure they can be useful in our
companies.”
There may be a little backlash at first because of the vast cultural
differences between mostly white Boomers and those born after them,
“but over the long term people will adjust to this,” Frey concludes. “They
are going to understand that we have job openings and we need to fill
them with skilled people. Savvy business owners and corporate leaders
will understand that these are the demographics of the future and we
need to make the best of it.”
Thanks for stopping by,
George
“We are all
dependent on one
another, every soul
of us on Earth.”
- George Bernard
Shaw