Professor of Sociology, Arts & Sciences at Washington University in St. Louis is Adia Harvey Wingfield.
In two significant ways, increased immigration, higher life expectancy, and a fall in birth rates are altering the U.S. labor force. Four decades ago, there were much fewer individuals of color and employees older than 55 powering this nation’s economy.
Economists anticipate that this diversity will continue to rise in the coming years.
According to the Bureau of Labor Statistics, the percentage of nonwhite, Latino, and multiracial U.S. workers than doubled from 23% in 1979 to 40% in 2019. Today, nearly 37 million U.S. workers are 55 or older, as a result of an increase in the proportion of older adults who remain economically engaged. They account for approximately one-quarter of the 160 million Americans with paid employment. In 1979, less than 1 in 7 American workers belonged to this age group.
The BLS forecasts that the number of older employees, particularly those well into their golden years, will continue to increase in the coming years. According to the statistics, the number of Americans 75 and older remaining in the labor force will nearly double between 2020 and 2030, while the total number of workers will increase by only 5.5%.
The percentage of white workers is projected to decrease to 74.7% by 2031, from 77% in 2021.
Additionally, the government tracks the number of Hispanic workers who identify as white, Black, or mixed race. It is projected that the proportion of such workers will increase during that decade from 12.1% in 2001 to 21.5% of the labor force.
How do American employers react to these changes?
As a sociologist, I investigate the persistence of racial and gender disparity in professional employment. Employers will likely be compelled to do a better job of attracting and retaining underrepresented and older workers as a result of diversity, equity, and inclusion initiatives.
Deanna Singh on how to establish an inclusive work environment 04:39
Diversity efforts are now prevalent
Employers routinely implement diversity, equity, and inclusion initiatives. According to a 2019 poll of 234 companies, nearly two-thirds employ diversity managers.
Their roles can vary substantially. Creating a culture that honors and welcomes individuals from varied backgrounds and expanding the number of employees from underrepresented origins in a given industry are two examples.
This may entail hiring more female, Black, and Latino analysts in the finance industry. This might involve recruiting more men of all colors into the nursing profession, which is still dominated by white women.
In these and other sectors, changing the culture may involve gathering data on underrepresented workers, attempting to fill any identified gaps, or amending clothing and grooming regulations that prohibit haircuts more typically worn by Black workers.
The Uncertain Economy: Where Have All the Workers Gone? 02:44 Two frequent yet unwise techniques
Unfortunately, many businesses employ diversity strategies that have not been proven effective.
These can include mandated diversity training, which typically takes the form of professional webinars or interactive workshops.
Diversity training is intended to improve individuals’ ability to work and connect with coworkers and customers from diverse cultural backgrounds. But it frequently fails to do so.
An obstacle is that employees dislike the sensation of being governed.
A further possibility is that they view this mandated training as a waste of time. And there is evidence that it might be detrimental by perpetuating prejudices rather than dispelling them and alienating Black workers.
The other method that is more prevalent than it should be is requiring job candidates to pass a skills exam as a condition of employment. In the field of technology, for instance, a skills test could consist of asking applicants to solve a specific problem so that hiring managers can objectively evaluate their skills and teamwork abilities.
The problem with skills testing is that hiring managers frequently evaluate the results differently for black and white candidates due to a variety of prejudices, some of which they may be unaware of.
Recent study reveals that neither of these popular tactics is influencing corporations to increase racial diversity in their workforces through hiring practices.
I believe companies utilize these methods regardless because they are simple, widespread, and popular. Instead of trying something new, businesses may continue using what they have in the past.
Fortunately, new study suggests more effective techniques.
What tends to work better
Employers can adapt their employment practices in response to the demographic realities of today and the future. They might begin by hiring more employees from historically black schools and universities and institutions serving the Hispanic community.
The establishment of mentoring programs that are accessible to everybody, rather than by invitation only, is a promising retention tactic for workers of color. Thus, implicit prejudices will not disqualify employees of color.
Additionally, companies can employ “upskilling.”
In upskilling programs, employees test out a variety of organizational responsibilities. This method assists in the development of the skill sets of underrepresented individuals and links them with supervisors who might otherwise neglect them.
How “reverse mentoring” can break through boundaries and enhance the workplace 04:17 Workers who are aging and those who are aging
In certain economic sectors, the aging of the labor force is particularly apparent. While the median age of American workers was 42,2 in 2022, bus drivers were 55,6 and librarians were 49,9.
Due to the frequency of older workers in these occupations, some businesses may need to consider the needs of elderly workers in order to retain the personnel they require.
Among these modifications might be the implementation of phased retirement alternatives, allowing employees to transition progressively from full-time to part-time work for a number of years prior to leaving the workforce entirely.
It is also advisable to improve safeguards that protect these employees from age-based discrimination, which occurs frequently despite being illegal.
Frequently, older workers experience ridicule, harassment, and bullying. In addition, they are denied raises, promotions, and other chances.
Professionals with extensive experience join “Great Resignation” 04:21
However, businesses should not change their expectations to exclusively fit the demands of older employees. A growing proportion of employees under 40 have their own needs.
These employees, especially those in their 20s and 30s, are more forthcoming with their supervisors on their preferences for work-life balance than their coworkers aged 50 and older.
Numerous individuals in their twenties and thirties are rejecting a paradigm of work that needs them to be on-call and available at all times, necessitates inflexible scheduling, and places increasing demands on staff. They want employment that allows them to devote more time to their families and leisure activities.
Employers could have no choice
Ultimately, more age, racial, and ethnic diversity in the workforce may push companies to alter at least some of their practices.
With the aging of workers born after 1990, companies may need to make greater efforts to meet their preferences, especially as they prepare to replace older workers who retire or transition to part-time work.
Whether by choice or by necessity, I believe firms will hire more racially and ethnically diverse workforces. In addition, I anticipate that they may be compelled to provide their employees more flexibility and freedom.
»U.S. workers are more diverse than ever before, but employers have not kept pace«