Introduction
Demography means studying human populations with the help of statistics. This science is very general and can refer to “age groups, migratory groups, ethnic and or gender groups” (Song, 2009). The analysis can be applied to “groups or to the entire society taking into account education, religion, nationality, etc” (Song, 2009). It also takes into account the relations between these various groups.
Background
The workforce in America has always been changing – since the days when it was discovered by Europe. The country became a magnet for immigrants mainly because of the vast business or economic prospects in the new land. The immigrants came from countries where opportunities were limited. This process is continuing till today (Tatlõ, 2009).
This steady flow of immigrants has caused the demography of America to keep on changing again and again. The Census Report of 2002 notes that “the population grew to 300 million in 2006 from 76 million in 1900” (Rothwell and Kolb, 2007). The business of America has been relying on immigrants since the 16th century. In the start most came from Europe – the farmers and the continued to ply their trade in the new world. People with technological skills also came. The first cotton factory was set up at “Pawtucket on Rhode Island by Samuel Slater” (Rothwell and Kolb 2007) who was an expert in manufacturing machinery for textile production.
Discussion
Immigration issues have led to continuous debates. It is said that immigration depressed wages and put pressure on public services – weakening the same. From the late 90s till 2006 there were near “10 million legal immigrants and 12 million who came without papers” (Rothwell and Kolb, 2007). There are fears that a population boom would ultimately strangle business and the country’s economy.
In a world that is no longer isolated but globalized, it is difficult to isolate America as regards the impact of demography on business. This truth has been substantiated by the financial crisis that started in America and spread to all corners of the world. It is said that when “America sneezes the world coughs” (Tatlõ, 2009).
Analysis
In the last decade, the world has come to comprise of two sectors – those who save and those who spend. To solve the global crisis the reverse has to take place with savers spending and spenders saving. This change-over will be facilitated by demography as the people in the countries that save are aging while in the countries that spending is rampant, the population is young. This change over will be the most visible in the USA that might lead to a sustainable surplus but it might not be permanent (Green and Collis, 2006).
In the USA the most fundamental changes will take place. It has an improved demographic future than others but the economy is aging. Families have not been saved in America. From the close of World War II till the first years of the ’90s “the rating of family savings hovered from 8% to 12% of earnings” (Rothwell and Kolb, 2007). Then it began to plummet to less than 5% in the middle years of the 90’s decade and turned negative from the middle years of 2005. During the housing boom real asset value, however, went up to fall again during the bust period (Haley-Lock, 2009).
The shock of the bust has led to families concentrating on saving and this will mean less spending, less money going around for business, and thus slow growth of GDP. It is the baby boomers – those born during the post-war period that will largely determine this saving-spending ratio. The baby boomers are nearing retirement and the shock of the crisis will impact those most (Haley-Lock, 2009).
Other changes are taking place. With employment at an all-time low many of the Blacks – the community worst affected by the financial crisis – are no longer willing to wait in job queues as they know it would be of no avail. Thus they have started businesses of their own using their previous expertise. It means however more work with fewer earnings but the drive is noticeable among the Afro-Americans (Tatlõ, 2009).
Next in line are the Latinos. Arizona has just passed an anti-immigration law that will impact negatively on a sizeable Latino population. Many of them have owned houses although they did not have the necessary papers. With the enforcement of the law, they would be leaving in droves leaving behind more vacant houses and more trouble for the real estate business (Haley-Lock, 2009).
Conclusion
In conclusion, it should be stated that there is talk about the recovery of the American economy but the unemployment figures continue to hover around double digits. Why? Here again, demography comes into play. A large section of the populace, now in their middle years, has become redundant because in the new age of computers their skills are no longer of use. This recession gave employers the chance to lay them off and even when things are improving they are not required for secretarial work that has been replaced by computers. The fuel crisis has added another dimension to the problem. This has resulted in “green business opening up with high demand for qualified persons irrespective of age, color or gender” (Song, 2009).
References
- Green, A., and Collis, C. (2006). Regional and local labour market prospects: the importance of ageing in workforce development. Population, Space and Place 12(5), 323-340.
- Haley-Lock, A. (2009). Variation in part-time job quality within the nonprofit human service sector. Nonprofit Management and Leadership 19(4), 421-442.
- Rothwell, W., and Kolb, J. (2007). Major workforce and workplace trends influencing the training anddevelopment field in the USA. International Journal of Training and Development 3(1), 44-53.
- Song, J. (2009). The effect of learning organization culture on the relationship between interpersonal trust and organizational commitment. Human Resource Development Quarterly 20(2), 147-167.
- Tatlõ, A. (2009). Role in organizational change: Towards a conceptual framework. Canadian Journal of Administrative Sciences 26(3), 244-258.