Disruptive Demographics and North Carolina’s Global Competitiveness Challenge James H. Johnson, Jr. Frank Hawkins Kenan Institute of Private Enterprise Kenan-Flagler Business School University of North Carolina at Chapel Hill March 2014 OVERVIEW • Demographic Trends • Challenges & Opportunities • Discussion what CENSUS 2010 will REVEAL March 2014 6 DISRUPTIVE TRENDS • • • • • • The South Rises – Again The Browning of America Marrying Out is “In” The Silver Tsunami is About to Hit The End of Men? Cooling Water from Grandma’s Well… and Grandpa’s Too! The South Continues To Rise ...Again! SOUTH’S SHARE OF U.S. NET POPULATION GROWTH, SELECTED YEARS, 1910-2010 Years 1910-1930 1930-1950 U.S. Absolute Population Change 30,974,129 28,123,138 South’s Absolute Population Change 8,468,303 9,339,455 1950-1970 1970-1990 51,886,128 45,497,947 15,598,279 22,650,563 1990-2010 60,035,665 29,104,814 South’s Share of Change 27% 33% 30% 50% 49% U.S. POPULATION CHANGE BY REGION, 2000-2010 2010 Population Absolute Population Change, 2000-2010 Percent Population Change, 2000-2010 309,050,816 26,884,972 9.5% Northeast 55,417,311 1,753,978 3.3% Midwest 66,972,887 2,480,998 3.0% South 114,555,744 14,318,924 14.3% West 72,256,183 8,774,852 13.8% 9,535,483 1,486,170 18.5% Region U.S. North Carolina SHARES OF NET POPULATION GROWTH BY REGION, 2000-2010 Absolute Population Change Percent of Total UNITED STATES 26,884,972 100.0 NORTHEAST 1,753,978 6.0 MIDWEST 2,480,998 9.0 SOUTH 14,318,924 53.0 WEST 8,774,852 32.0 Region NET MIGRATION TRENDS, 2000-2008 Northeast Midwest South West Total -1,032 -2,008 +2,287 +46 Black -346 -71 +376 +41 Hispanic -292 -109 +520 -117 Elderly -115 +42 +97 -27 Foreign born -147 -3 +145 +3 = Net Import = Net Export STATE SHARE OF SOUTH’S NET GROWTH, 2000-2010 Region/State Absolute Change State’s Share 14,318,924 100.0% Texas 4,293,741 30.0% Florida 2,818,932 19.7% Georgia 1,501,200 10.5% North Carolina 1,486,170 10.4% Other Southern States 4,218,881 29.4% The South NC COUNTIES WITH THE LARGEST ABSOLUTE POPULATION GAINS, 2000-2010 NC COUNTIES EXPERIENCING POPULATION DECLINE, 2000-2010 Counties with Biologically Declining Populations, 2009 Alleghany Northampton GatesPasquotank Ashe Camden Surry Stokes CaswellPerson VanceWarren Hertford Granville Currituck Rockingham Halifax Watauga Wilkes ChowanPerquimans Yadkin Forsyth Franklin Avery Guilford Bertie Orange Mitchell NashEdgecombe Durham CaldwellAlexander Davie Alamance Washington MadisonYancey Martin Iredell Davidson Tyrrell Dare Wake McDowellBurke RandolphChatham Wilson Catawba Rowan Pitt Beaufort HaywoodBuncombe Johnston Greene Swain Hyde LincolnCabarrus Montgomery Lee Harnett Wayne HendersonRutherfordCleveland Graham Stanly Jackson Moore Gaston Lenoir Craven Polk Mecklenburg Macon Transylvania Pamlico Cherokee Cumberland Jones Union AnsonRichmondHoke Clay SampsonDuplin Scotland Carteret Onslow Robeson Bladen Pender Columbus New Hanover Brunswick Legend Deaths > Births Deaths < Births 4 0 37.5 75 Miles 150 GROSS AND NET MIGRATION FOR THE SOUTH, 2004-2010 The Region Domestic Years In Out Foreign Net In Out Net 2004-2007 4,125,096 3,470,431 654,665 268,619 132,382 136,237 2007-2010 3,874,414 3,477,899 396,525 232,501 132,201 100,300 Florida Domestic Years In Out Foreign Net In Out Net 2004-2007 812,053 630,051 182,002 41,745 24,108 17,637 2007-2010 654,931 668,087 33,095 32,094 1,001 -13,156 U.S. POPULATION CHANGE BY REGION, 2010-2013 2013 Population Absolute Population Change, 2010-2013 Percent Population Change, 2010-2013 316,128,839 6,802,554 2.2% Northeast 55,943,073 566,751 1.0% Midwest 67,547,890 571,569 0.9% South 118,383,453 3,525,554 3.1% West 74,254,423 2,138,670 3.0% 9,848,060 258,527 2.7% Region U.S. North Carolina SHARES OF NET POPULATION GROWTH BY REGION, 2010-2013 Absolute Population Change Percent of Total 6,802,554 100.0 NORTHEAST 566,751 8.3 MIDWEST 571,569 8.4 SOUTH 3,525,554 51.8 WEST 2,138,670 31.4 Region UNITED STATES STATE SHARES OF SOUTH’S NET GROWTH, 2010-2013 Region/State Absolute Change State’s Share The South 3,525,554 100.0% Texas 1,203,015 34.1% Florida 736,806 20.9% Georgia 278,919 7.9% North Carolina 258,527 7.3% Virginia 235,988 6.7% Other Southern States 812,299 23.1% NC Biologically Declining Counties, 2010-2012 Net Importers and Exporters of Population, 2010-2012 THE “BROWNING” OF NORTH CAROLINA Number of Immigrants (in millions) U.S. Immigrant Population, 1900-2011 45 40.4 40 35.2 35 31.1 30 25 19.8 20 15 10 13.5 13.9 14.2 10.3 11.6 14.1 10.3 9.7 9.6 5 0 1900 1910 1920 1930 1940 1950 1960 Year 1970 1980 1990 2000 2005 2011 U.S. Foreign Born Population by Race/Ethnicity, 2011 Race/Ethnicity Foreign Population Share of Total (%) Total 40,381,574 100.0 Hispanic White Alone, not Hispanic 18,788,300 7,608,236 46.5 18.8 Black Alone, not Hispanic Asian Alone, not Hispanic Other Alone, not Hispanic 3,130,348 7.8 9,988,159 24.7 866,531 2.1 22 NORTH CAROLINA POPULATION GROWTH BY NATIVITY, RACE, AND ETHNICITY, 1990-2007 829% 547% 332% 129% Native Immigrant 127% 133% White Black 182% Hispanic Asian Pacific Islander NON-WHITE AND HISPANIC SHARES OF POPULATION GROWTH, 2000-2010 Area Absolute Population Change Non-White Share Hispanic Share US 27,323,632 91.7 55.5 South 14,318,924 79.6 46.4 Texas 4,293,741 89.2 65.0 Florida 2,818,932 84.9 54.7 Georgia 1,501,206 81.0 27.9 NC 1,486,170 61.2 28.3 CONTRIBUTIONS OF NON-WHITES & HISPANICS TO NC POPULATION CHANGE, 2000-2010 Absolute Population Change 1,486,170 Percent NonWhite* 61.2 Percent Hispanic 28.5 Tier 1 Counties 69,365 84.1 51.5 Tier 2 Counties 327,859 63.2 34.2 Tier 3 Counties 1,088,946 59.1 25.0 Area All Counties Source: Census 2000 and Census 2010. *Non-whites include Blacks, Hispanics, American Indians and Alaskan Natives, Asians, Native Hawaiians & Pacific Islanders, and people of two or more races. Marrying Out October 2012 is “In” 27 INTERMARRIAGE TREND, 1980-2008 % Married Someone of a Different Race/Ethnicity October 2012 28 INTERMARRIAGE TYPES Newly Married Couples in 2008 October 2012 29 OUT-MARRIAGE PATTERNS BY RACE AND GENDER, NC 2005-2009 Hispanic Men 21.4 Hispanic Women 21.6 Black Men 9.4 Black Women 3.4 6.0 0.6 White Female 18.0 White Male 16.4 White Female Black Female 1.5 Black Male 3.7 Hispanic Female 1.4 Hispanic Male 1.9 Asian Female 0.7 Asian Male 0.2 Asian Female 0.5 Asian Male 0.1 Other Female 1.2 Other Male 1.3 Other Female 1.5 Other Male 0.9 White Men 3.3 White Women 3.4 Asian Men White Male 12.3 Asian Women 31.4 Hispanic Female 1.1 Hispanic Male 1.2 White Female 10.0 Hispanic Male 1.5 Black Female 0.3 Black Male 1.1 Black Female 0.6 White Male 25.8 Asian Female 0.9 Asian Male 0.2 Hispanic Female 0.5 Black Male 2.7 Other Female 1.0 Other Male 0.9 Other Female Other Male 1.3 1.2 Median Age and Fertility Rates for Females in North Carolina, 2007-2011 Demographic Group All Females White, Not Hispanic Black American Indian & Alaskan Native Asian Native Hawaiian & Pacific Islander Some other race Two or more races Hispanic Native Born Foreign Born Source: www.census.gov *Women 15 to 50 with births in past 12 months. Median Age 38.7 42.9 35.8 34.6 32.9 26.7 23.7 16.9 23.8 39.0 36.4 Fertility/1000 women* 56 49 60 66 63 103 97 65 99 52 92 RELATIVE DISTRIBUTION OF U.S. BIRTHS BY RACE / ETHNICITY Race/Ethnicity 1990 2008 2011 White 66% 50% 49.6% Blacks 17% 16% 15.0% Hispanics 15% 26% 26.0% 2% 8% 9.4% Other Source: Johnson and Lichter (2010); Tavernise (2011). CHANGE IN THE RACE/ETHNIC COMPOSITION OF NC PUBLIC SCHOOLS, 2000-2009 Group Total . AI/AN Black Asian Hispanic White 2009 Enrollment 1,427,960 20,378 444,870 35,140 152,605 774,967 Source: DPI, The Statistical Profile Online 2000 Absolute Percent Enrollment Change Change 1,268,422 159,538 12.6 18,651 1,727 9.6 393,712 51,158 13.0 23,576 11,564 49.0 56,232 96,373 171.4 776,251 - 1,284 - 0.2 Share of Net Change 100.0% 1.2% 32.1% 7.2% 60.4% NC’s SILVER TSUNAMI Absolute and Percent Population Change by Age, 2000-2010 Age United States All Ages 27,323,632 (9.7%) <25 5,416,292 (5.4%) -2,905,697 (-3.4%) 19,536,809 (31.5%) 1,486,170 (18.5%) 449,385 (16.2%) 73,209 (2.9%) 698,545 (38.6% ) 5,276,231 (15.1%) 265,031 (27.3% ) 25-44 45-64 65+ North Carolina U.S. POPULATION TURNING 50, 55, 62, AND 65 YEARS OF AGE, (2007-2015) Average Number/Day Average Number/Minute October 2012 Age 50 Age 55 Age 62 Age 65 12,344 11,541 9,221 8,032 8.6 8.0 6.4 5.6 36 DEPENDENCY RATIOS IN THE AMERICAN SOUTH Source: Census 2010 NC ABSOLUTE POPULATION CHANGE BY AGE, 2000-2010 Age All Ages Tier 3 Tier 2 Tier 1 All Counties Counties Counties Counties 1,486,170 1,088,946 327,859 69,365 <25 25-44 45-64 449,385 73,209 698,545 369,818 159,248 410,705 85,481 - 36,139 199,101 - 5,914 -49,900 88,739 65+ 265,031 149,175 79,416 36,440 Dependency Rates for North Carolina and Economic Development Tiers, 2006-2010 Dependency Rate North Carolina 68.7 Tier 1 90.5 Tier 2 71.3 Tier 3 56.6 COOLING WATERS FROM GRANDMA’S WELL And Grandpa’s Too! Children Living in Non-Grandparent and Grandparent Households, 2001-2010 Household Type Absolute Number Absolute Change 2010 2001-2010 All 74,718 2,712 3.8 No Grandparents 67,209 917 1.4 Both Grandparents 2,610 771 41.9 Grandmother Only 1,922 164 9.3 318 71 28.7 Grandfather Only October 2012 Percent Change 2001-2010 42 Children Living in Non-Grandparent and Grandparent-Headed Households by Presence of Parents, 2010 Household Type All Children Living with (in thousands) Both Parents Living with Mother Only Living with Father Only Living with Neither parent All 74,718 69.3% 23.1% 3.4% 4.0% No Grandparents 67,209 73.4% 21.2% 3.3% 2.1% Both Grandparents 2,610 18.1% 40.6% 5.2% 36.1% Grandmother Only 1,922 13.8% 48.4% 4.5% 33.2% Grandfather Only 318 26.4% 45.9% 4.4% 23.6% October 2012 43 GRANDPARENTS LIVING WITH GRANDCHILDREN AGES 18 AND YOUNGER IN NORTH CAROLINA Total Households with Grandparents Grandparents Responsible for Grandchildren Child's Parents in Household 2005 2010 Percent Change 146,875 175,019 19.2 84,232 109,602 30.1 43,679 67,271 54.0 The End of Men? FEMALE WORKFORCE REPRESENTATION 50 45 40 35 30 25 20 15 10 5 0 1970 1980 1990 % Female 2000 2010 JOBS LOST/GAINED BY GENDER DURING 2007 (Q4) – 2009 (Q3) RECESSION Industry Construction Manufacturing Healthcare Government Total Women -106,000 -106,000 +451,800 +176,000 -1,700,000 Men -1,300,000 -1,900,000 +118,100 +12,000 -4,700,000 THE PLIGHT OF MEN • Today, three times as many men of working age do not work at all compared to 1969. • Selective male withdrawal from labor market—rising non-employment due largely to skills mismatches, disabilities & incarceration. • The percentage of prime-aged men receiving disability insurance doubled between 1970 (2.4%) and 2009 (4.8%). • Since 1969 median wage of the American male has declined by almost $13,000 after accounting for inflation. • After peaking in 1977, male college completion rates have barely changed over the past 35 years. COLLEGE CLASS OF 2010 DEGREE MALE FEMALE DIFFERENCE Associate’s 293,000 486,000 193,000 Bachelor’s 702,000 946,000 244,000 Master’s 257,000 391,000 134,000 Professional 46,800 46,400 -400 Doctor’s 31,500 32,900 1,400 1,330,300 1,902,300 572,000 TOTAL ENROLLMENT IN 2 YEAR COLLEGES, 2009 Area U.S. Southeast Region North Carolina NC- 2 Yr Colleges Total Enrollment 20,966,826 4,731,356 Full Time Enrollment (%) 63 65 Male Enrollment (%) 43 41 Black Enrollment (%) 13 23 574,135 64 41 24 253,383 43 40 25 UNC SYSTEM STUDENT ENROLLMENT BY GENDER AND TYPE OF INSTITUTION, 2010 Type of Institution UNC System Majority Serving Minority Serving HBUs Total Enrollment 175,281 Male Enrollment 76,953 Percent Male 44 139,250 63,403 46 36,031 13,550 38 29,865 11,191 37 Average EOG Scores Math 8 EOG Scores 90.00 83.88 84.44 80.42 Percentage Passed 80.00 81.20 81.87 75.37 70.00 68.22 Boys 72.17 70.15 65.25 72.22 State Avg. 60.00 61.30 50.00 2007/2008 2008/2009 2009/2010 Girls 2010/2011 Year Gender scores are averages of 6 LEAs (Bertie, Bladen, Halifax, Duplin, Northampton and Pamlico) Average EOG Scores Reading 8 EOG Scores 90.00 82.44 80.64 Percentage Passed 80.00 66.61 70.00 60.00 54.17 Boys 56.83 60.08 54.92 50.00 40.00 30.00 Girls State Avg. 42.92 49.97 49.63 48.38 38.05 2007/2008 2008/2009 2009/2010 2010/2011 Year Gender scores are averages of 6 LEAs (Bertie, Bladen, Halifax, Duplin, Northampton and Pamlico) Average EOC Scores Algebra 1 EOC Scores 90.00 77.78 Percentage Passed 80.00 70.00 69.04 76.65 67.73 69.50 60.00 69.33 Girls 62.92 57.98 58.92 57.10 50.00 48.73 50.67 40.00 2007/2008 2008/2009 2009/2010 Boys 2010/2011 Year Gender scores are averages of 6 LEAs (Bertie, Bladen, Halifax, Duplin, Northampton and Pamlico) State Avg. EOC Composite Scores EOC Composite Pass Rates 85.0 80.8 % of Students Passing 80.0 75.0 70.0 68.4 71.5 71.6 65.0 67.4 60.0 55.0 50.0 53.85 50.8 79.7 73.95 67.8 Females 55.7 State 52.6 45.0 40.0 2007/2008 Males 2008/2009 2009/2010 2010/2011 Year Gender scores are averages of 6 LEAs (Bertie, Bladen, Halifax, Duplin, Northampton and Pamlico) Male-Female Presence Disparity Total Number of EOC Test Takers 6400 6200 Number of Test Takers 6000 5800 5600 5400 males 5200 females 5000 4800 4600 2007/2008 2008/2009 2009/2010 2010/2011 Year Graph shows total number of male and female students tested of 6 LEAs (Bertie, Bladen, Duplin, Halifax, Northampton, and Pamlico) High School Graduation Rates Graduation Rates (LEAs Grouped) 90 77.37 Percent Graduated 80 78.42 75.17 81.30 70 50 60.65 69.42 63.75 60 59.58 Boys 40 Girls 30 20 10 0 2007/2008 2008/2009 2009/2010 2010/2011 Year Avg. graduation rates of 6 LEAs (Bertie, Bladen, Halifax, Duplin, Northampton and Pamlico) The Minority Male Challenge Third Grade EOG Reading Test Pass Rates For Males by Race/Ethnicity 80% 70% 65% EOG Pass Rate 68% 59% 60% 55% 50% 52% 45% 55% 50% 69% 57% 52% White Boys 46% 46% 38% 40% 30% 66% Black Boys 48% 49% American Indian 43% 33% 31% 20% 2008 2009 Latino Boys 2010 Year 2011 2012 Third Grade EOG Math Test Pass Rates for Males by Race/Ethnicity 100% 90% 90% 90% 90% 79% 80% 76% 77% 74% 75% 84% 80% EOG Pass Rate 90% 80% 70% 67% 67% 60% 50% 77% Black Boys 65% 65% 2009 2010 Year 67% 68% Latino Boys American Indian 54% 40% 2008 White Boys 2011 2012 Eighth Grade EOG Reading Test Pass Rates for Males by Race/Ethnicity 100% 90% 77% EOG Pass Rate 80% 80% 60% 54% 49% 50% 54% 44% 55% 56% 52% 50% 48% 30% 2008 2009 2010 Year 2011 Black Boys Latino Boys 43% 32% White Boys 56% 48% 35% 40% 20% 81% 66% 70% 30% 80% 2012 American Indian Eighth Grade EOG Math Test Pass Rates for Males by Race/Ethnicity 100% 87% 90% 78% EOG Pass Rate 80% 89% 77% 73% 70% 66% 89% 90% 79% 80% 78% 74% 56% 65% 68% 51% 54% 40% 2009 2010 Year Latino Boys American Indian 65% 50% 2008 White Boys Black Boys 67% 60% 77% 2011 2012 DIVERSITY RULES ...but Challenges Abound September 2012 63 September 2012 64 Percent of High School Graduates Requiring Remedial Course Work 2010 26.8 19.2 54 1,725 2009 24 20.8 55.2 1,587 2008 23.8 20.2 55.9 1,534 55.2 1,261 2007 25.6 2006 19.2 28.7 0 10 23.3 20 30 None 40 One 1,047 48 50 60 70 Two or or MoreHS more GradsPercent of HS Grads 80 90 100 Education is Necessary ...but insufficient BACHELOR’S DEGREE HOLDERS (UNDER AGE 25) WHO WERE JOBLESS OR UNDEREMPLOYED Year 2000 2011 Percent 41.0 53.6 CHANGE IN INCIDENCE OF POVERTY BY EDUCATIONAL ATTAINMENT IN NC, 2005-2007, 2008-2010 Educational Attainment Less than High School High School Graduate Some College, Associate Degree Bachelor’s degree or higher 2005-2007 2008-2010 Percent Change 253,304 276,757 9.3% 216,667 234,371 8.2% 136,185 186,834 37.2% 49,082 57,919 18.0% Source: American Community Survey THE COMPETITIVE TOOL KIT • Analytical Reasoning • Entrepreneurial Acumen • Contextual Intelligence • Soft Skills/Cultural Elasticity • Agility and Flexibility Implications for Workforce Planning and Development • Managing transition from the “graying” to the “browning” of America. • Competition for talent will be fierce – and global. • Successful recruitment and retention will hinge on your ability to effectively manage the full nexus of “diversity” issues. September 2012 70 MOVING FORWARD • Higher Education must become more actively engaged in K-12 Education. • Improve Male Education Outcomes • Embrace immigrants • Education and business must establish stronger ties to ensure that students graduate with the requisite skills to compete in an ever-changing global economy. • Prepare students for the freelance economy. • Augment efforts to recruit plants with a human capital recruitment strategy (particularly to attract the NC born and bred).