Texas – A Majority/Minority State: Social and Economic Implications by Cruz C. Torres Professor Emeritus Dept. of RPTS Texas A&M University May 25, 2011 2011 Texas SDC/BIDC Annual Meeting, Austin, TX Demographic Trends Affecting the Future Change in Rates and Sources of Population Growth – Increase in the Non-Anglo Population – migration fertility Aging of the Population – death Projected Rates of Natural Increase for US by Population Groups: 2010-2050 Source: U.S. Census Bureau, Population Division (NP2008-t9) Projected Rates for Components of US International Migration by Ethnicity: 2010-2050 Texas Population Change Texas Population Change by Race/Ethnicity: 2000-2010 Race/ Ethnicity 2000 Census Population 2010 Census Population Numerical Change 20002010 NH White 11,074,716 11,397,345 322,629 2.9 53.1 45.3 NH Black 2,421,653 2,886,825 465,172 19.2 11.6 11.5 Hispanic 6,669,666 9,460,921 2,791,255 41.8 32.0 37.6 NH Asian 685,785 1,400,470 714,685 104.2 3.3 5.6 20,851,820 25,145,561 4,293,741 20.6 100.0 100.0 Total Source: U.S. Census Bureau 2000 and 2010 Census Counts Percent Change 2000/ 2010 Percent of Population 2000 2010 Population Change by Components of Change in the State, 1990-2000 and 2000-2009 State of Texas 1990- 2000 Numerical Change 3,865, 485 Natur al Incr ease 49.7 Domestic Migr at ion 30.2 International Migr at ion 20.1 2000- 2009 Numerical Change Natur al Incr ease 3,930, 484 54.04 Domestic Migr at ion 21.6 International Migr at ion 23.8 Texas Counties with 50 Percent or More of Their Total Population That is Anglo in 2000 and Projected for 2040 Under Alternative Projection Scenarios 2000 2040 (1.0 Scenario) 2040 2040 (0.5 Scenario) (2000-2004 Scenario) Percent Anglo Population Less Than 50% Anglo Population 50% or Greater Anglo Population Source: 2006 Population Projections, Texas State Data Center, Institute for Demographic and Socioeconomic Research, The University of Texas at San Antonio Projected Proportion of Population by Race/Ethnicity in Texas, 2000-2040* Percent 70.0 59.2 60.0 53.2 53.1 50.0 46.5 45.1 39.3 40.0 37.3 32.0 30.3 30.0 23.9 20.0 11.6 11.1 10.3 9.2 10.0 4.5 3.3 7.3 5.9 8.0 0.0 2000 2010 2020 Anglo Black Hispanic 2030 2040 Other *Using U.S. Census count for 2000 and Texas State Data Center 1.0 population projection scenario for 2010-2040. 8.9 Projected Percent of Net Change Attributable to Each Race/Ethnicity Group in Texas for 2000-2040* Black 5.3% Hispanic 78.2% Anglo 3.9% Other 12.6% * Using U.S. Census count for 2000 and Texas State Data Center 1.0 population projection scenario for 2040. Ethnic Diversity of the Population, Householders, and Labor Force in Texas, 2000 and 2040* 53.1% 58.4% 61.4% 3.0% 3.3% 11.6% 11.4% 32.0% 2000 Population 10.7% 24.2% 2000 Householders 7.9% 9.0% 24.2% 27.5% 2000 Civilian Labor Force 7.9% 29.0% 8.8% 59.1% 3.4% 25.2% 8.2% 9.2% 58.7% 52.8% 2040 Civilian Labor Force 2040 Householders 2040 Population Anglo * Projections are shown for the 1.0 scenario Black Hispanic Other Major Changes in Population: Age Composition Population Pyramids for Anglo and Hispanic Ethnic Groups in Texas, 2000 Hispanic Anglo Age 100 + years 95 to 99 years 90 to 94 years 85 to 89 years 80 to 84 years 75 to 79 years 70 to 74 years 65 to 69 years 60 to 64 years 55 to 59 years 50 to 54 years 45 to 49 years 40 to 44 years 35 to 39 years 30 to 34 years 25 to 29 years 20 to 24 years 15 to 19 years 10 to 14 years 5 to 9 years < 5 years 5 , 00 00 0 4 , 00 00 0 3 , 00 00 0 2 , 00 00 0 1 , 00 Male 00 0 0 1 , 00 00 0 2 , 00 00 0 3 , 00 Female 00 0 4 , 00 00 0 5 , 00 00 0 50 0 0, 00 40 0 0, 00 30 0 0, 00 20 0 0, 00 10 0 0, Male 00 0 10 0 0, 00 20 0 0, 00 30 0 0, Female 00 40 0 0, 00 50 0 0, 00 Percent of Texas Population by Age Group and Ethnicity, 2000 Percent 80.0 72.6 66.4 67.1 63.5 60.2 60.0 57.2 53.0 47.8 44.0 40.0 39.5 45.0 45.0 41.641.3 38.0 38.4 43.1 40.5 44.4 38.6 35.3 30.5 26.7 20.0 24.2 22.4 20.6 20.3 16.7 0.0 s s s s s s s s s s s s s s ar ar ar ar ar ar ar ar ar ar ar ar ar ar e e e e e e e e e e e e e e y y y y y y y y y y y y y y 5 9 4 9 4 9 4 9 4 9 4 9 4 + 1 1 2 2 3 3 4 4 5 5 6 < to 65 to to to to to to to to to to to 5 10 15 20 25 30 35 40 45 50 55 60 Anglo Hispanic Population, Population Change, and Proportion of the Population Less than 18 Years of Age by Race/Ethnicity for Texas, 2000 and 2010 Percent of Population Change Race/Ethnicity* NH Whites (Anglo) Hispanic (All Races) NH Black NH Asian 2000 2,507,147 2,386,765 732,807 139,226 2010 2,322,661 3,317,777 810,543 231,458 Numeric -184,486 931,012 77,736 92,232 NH "Other" Races NH Two or More Races State of Texas 28,962 91,852 5,886,759 36,513 146,872 6,865,824 7,551 55,020 979,065 Percent -7.36 39.01 10.61 66.25 33.05 59.90 16.63 2000 42.59 40.54 12.45 2.37 2010 33.83 48.32 11.81 3.37 0.49 1.56 100.00 0.53 2.14 100.00 Source: U.S. Census 2010, P.L. 94-171 * “Other Race” is comprised of Native American and Alaska Native, Native Hawaiian and Pacific Islander, and “Some Other Race” as per the Census 2000 and Census 2010. Hispanic includes persons of all races. All other race/ethnicity categories shown here are non-Hispanic (e.g., nonHispanic White, non-Hispanic Black, etc.) Percent of Texas Population by Age Group and Ethnicity, 2040* 80.0 70.0 Percent 69.9 67.8 66.5 65.5 66.0 66.8 66.4 64.3 62.6 60.6 60.0 56.7 55.2 52.3 50.0 39.8 37.1 40.0 30.0 20.0 25.3 17.7 19.3 19.9 20.3 19.8 19.3 19.4 20.5 20.6 26.5 27.2 21.9 10.0 0.0 rs rs rs rs rs rs rs rs rs rs rs rs rs rs a a a a a a a a a a a a a a ye ye ye ye ye ye ye ye ye ye ye ye ye ye 5 9 4 9 4 9 4 9 4 9 4 9 4 + 1 1 2 2 3 3 4 4 5 5 6 < to 65 o o o o o o o o o o o t t t t t t t t t t t 5 10 15 20 25 30 35 40 45 50 55 60 Anglo * Proj ections are shown for the 1.0 scenario Hispanic Percent of Persons 65 Years of Age and Older in Texas Counties, 2000 Percent 65 Years Old and Older < 11.9 (n=66) 12.0 - 14.9 (n=70) 15.0 - 19.9 (n=80) 20.0 or more (n=38) Source: Institute for Demographic and Socioeconomic Research, The University of Texas at San Antonio. Census 2000 Summary File 1. Percent of Persons 65 Years of Age and Older in Texas Counties, 2040* Percent 65 Years Old and Older < 11.9 (n=2) 12.0 - 14.9 (n=19) 15.0 - 19.9 (n=79) 20.0 or more (n=154) * Assuming rates of migration equal to 2000-2004 Source: Institute for Demographic and Socioeconomic Research, The University of Texas at San Antonio. Texas Population Estimates and Projections Program, 2006 Projections. Percent Change from 2000 to 2040 in Selected Age Groups in the Texas Population Under the 1.0 Percent Change Scenario 350.0 295.5 300.0 250.0 200.0 150.0 112.0 100.0 88.3 50.0 0.0 <18 years 18 to 24 years 65+ years Education Educational Attainment for the Texas Population Age 25 and Older by Race/Ethnicity, 2009 Race Ethnicity Non-Hispanic White Black Hispanic* Asian Total ________ Population Less than High Age 25 and high school Older school diploma 8,026,049 8.3 25.3 1,705,709 15.0 30.4 4,876,517 42.5 25.2 580,159 14.2 15.4 15,361,557 20.1 25.4 Source: U.S. Census, American Community Survey, 2009. *Includes Hispanic persons of all races. Some college or associates Bachelor degree or more 32.5 33.9 36.5 18.1 21.4 10.9 17.2 53.2 28.9 25.5 Percent of Persons 25 Years of Age or Older by Level of Educational Attainment and Race/Ethnicity in 2000 and Projected to 2040* Assuming 1990-2000 Trends in Educational Attainment Rates Anglo < Hig h Sch o o l 12.7 2.2 25.7 Hig h Sch o o l 16.6 31.6 33.4 30.0 So me Co ll/Asso c Bach elo r's + 47.8 Black < Hig h Sch o o l 24.0 4.3 29.9 Hig h Sch o o l 25.6 30.6 So me Co ll/Asso c. 40.5 15.5 Bach elo r's + 29.6 Hispanic 50.7 < Hig h Sch o o l 32.1 22.0 25.8 18.4 24.1 Hig h Sch o o l So me Co ll/Asso c 8.9 Bach elo r's + 18.0 Other 21.0 < Hig h Sch o o l Hig h Sch o o l 13.4 16.1 7.6 20.6 So me Co ll/Asso c 11.0 42.3 Bach elo r's + 68.0 0.0 10.0 20.0 30.0 40.0 50.0 Percen t 2000 *Pro jectio n s are sh o w n fo r th e 1.0 scen ario 2040 60.0 70.0 80.0 Ethnic Diversity of the Population Enrolled in Elementary and Secondary Schools in Texas, 2000 and 2040 Ethnic Diversity of the Population Enrolled in Colleges and Universities in Texas, 2000 and 2040 Future Demands for Specific Programs 76.2% Elementary and Secondary Enrollment Growth Bilingual/ESL 186.8% Economically Disadvantaged 119.9% Gifted and Talented 48.5% Immigrants 183% Limited English Proficiency (LEP) Special Education 188.1% 64.7% Title 1 Career and Technology Education 0% 101.9% 69.9% 50% 100% 2000-2040 Percent Change Source: The New Texas Challenge: Population Change and the Future of Texas 150% 200% Socioeconomic Conditions Median Household Income in 1999 in Texas by Age of Householder Thousands $60 $50 $40 $30 $20 $10 $0 <25 25-34 35-44 45-54 55-64 Age of Householder 65-74 75+ Total and Percent of the Texas Population in Poverty and Median Household Income by Race/Ethnicity, 1999 and 2009 1999 2009 % Median Household Income* 826,459 7.8 $60,839 1,010,170 9.0 $59,836 1,658,434 25.4 $38,536 2,364,407 26.4 $35,628 Black 525,082 23.4 $37,803 630,479 23.1 $35,438 Asian 65,048 11.9 $64,576 105,186 12.1 $63,692 Other 42,586 13.9 NA 40,000 11.9 NA 3,117,609 15.4 $51,506 4,150,242 17.2 $50,043 Population in Poverty Anglo Hispanic Total Population in Poverty % Median Household Income *In 2009 Dollars Source: U.S. Census Bureau, Census 2000 and American Community Survey, 2009 Average Household Income in Texas, 2000-2040* (in 2000 Dollars) $60,000 $54,441 $52,639 $50,903 $49,326 $50,000 $47,883 $40,000 $30,000 2000 2010 * Projections are shown for the 1.0 scenario 2020 2030 2040 Texas Latino Labor Force U.S. Latino wages better than Texas Latino wages – Texas Latino wages – 71% of NH white wages 64% of NH white wages If current labor force trends continue by 2040 HH income will be $6,000 less than in 2000 Projected Percent of Households in Poverty by Family Type in Texas, 2000 and 2040 Percent in Poverty 35.0 30.0 26.7 30.0 25.0 18.9 20.0 15.0 18.9 17.0 15.4 16.6 15.0 14.4 11.8 11.4 7.5 10.0 5.0 0.0 Family Households Married Couple Male Householder 2000 * Projections are shown for the 1.0 scenario Female Householder 2040 Nonfamily Households Total Households State Tax Revenues in Texas Proportioned by Race/Ethnicity in 2000 and Projections to 2040* Assuming 2000 Decile Tax Rates Ethnic Diversity of Household Income and Consumer Expenditures in Texas, 2000 and 2040* 66.4% 71.2% 3.0% 3.3% 17.3% 8.7% 8.2% 2000 Aggregate Household Income 21.9% 2000 Consumer Expenditures 38.2% 31.9% 7.1% 7.4% 9.3% 11.6% 51.7% 42.8% 2040 Consumer Expenditures 2040 Aggregate Household Income Anglo * Projections are shown for the 1.0 scenario Black Hispanic Other Group Disparities Texas’ ethnic group wages lower than Texas NH white wages Texas native born Hispanics’ wages higher than immigrant wages in Texas What does all this mean ? Pain or Gain Generation Gap: Two Pronged Issue The – The – Old Non-Hispanic white populations diminishing Young Hispanic populations rapidly expanding Consequences of Aging Population Greater proportion of population in retirement – – – Fixed income; dwindling resources Increase in single head of households Older more established households- less consumer needs Greater demand for services – Baby Boomer Syndrome Consequences of Aging Population Increase in health care needs – Age = chronicity Increase need for service providers – – – Smaller family units – less available help Greater geographic mobility less proximity to family care providers Greater proportion of elders will be childless Consequences of Increase in Minority Populations Labor Workforce – – Younger workforce Less experience Less educated workforce – – Lower skilled occupations = Lower wages Reduced occupation related benefits – – Especially health care benefits Reduced consumerism Increased government costs Minority Populations Consequences Higher – – – – – fertility rates 95% of child growth in past decade=Hispanic 50.2% of public school children in Texas /Hispanic Larger size households Greater demand for single family housing Greater demands on services health education Summary Market Consequences Reduced tax revenues – Increased proportion of taxpayers in retirement – Increased proportion of taxpayers non-Anglo – – Only 38% of revenues will from non-Hispanic whites Younger less experienced Lower levels of formal education Increased proportion of taxpayers in Service occupations = lower wages Less disposable income for needs Implications of Low English Proficiency & Education Attainment High levels of underemployment – – High levels of unemployment Low-skilled occupations Low-wage occupations – – Part-time Seasonal Low/no benefits Low/no security High sensitivity to economic downturns – Last hired – first fired Advantages of Population Shifts Greater demand for services The gray/aging population English-speaking service providers Housing The brown/younger population Bilingual service providers Education Affordable housing Younger households – more needs High Fertility Good for Economy More – people More demand for goods & services Pumps – up Social Security Young workers support aging population Investing in the future Hispanics can stimulate business – Pump-up weak housing markets – US Latino buying power $870 billion in 2008 61% of US Latino net worth invested in homeownership Replenish an aging labor force Revitalize dying communities – Look at what it has done for the Catholic Church The 64 Million $ Question Is Texas willing to educate this population the way it educated the populations in the past? Latino Family Portrait --- mi casa es su casa! Phone 956-765-5427 e-mail ctorres@ag.tamu.edu