Hispanic and Asian American segments are leading the current job recovery as indicated by positive Labor Force growth, Employment, and decrease in unemployment (negative numbers in chart). Meanwhile White Non-Hispanics are leaving the Labor Force instead of staying as other Multicultural segments and have caused a rapid reduction in the labor market.
Hispanic and Asian segments in particular are fueling the Labor Market. Of the 503K net increase in the US Labor Force over the last 12 months, the entire increase came from Multicultural segments, offsetting a decline of 765K in White Non-Hispanic population that left the workforce. For every White Non-Hispanic leaving the workforce, there have been 1.7 hustling Multicultural adults entering the economy and for the most part reducing unemployment and greatly increasing the Employed pool –new Santa’s with pocket books for this Holiday season.
Moreover, of the US net increase in Employment between September 2012 and September 2013, 42% was generated by Hispanics and 40% by Asian/Others, those are Multicultural Santa’s with money in their pockets ready for the Holidays. White Non-Hispanics have not contributed to the net employment increase over the last year. Multicultural segments are showing positive Labor Force trends. Clearly, Multicultural segments are least likely to give up when looking for jobs.
For almost two years, since January 2012, the number of Hispanic and Asian adults entering the Labor Force has been in a steady increase. African American adults have also shown a slight positive trend but not as strong as Hispanic and Asians. The biggest change impacting all industries is that White Non-Hispanics are trending downward in Labor Force slowing the labor force growth in comparison to Multicultural segments. Another vital indicator that the composition of new Santa’s is very different than in years past.
By consequence, Hispanic segments continue to lift the total Labor Force participation rate.
According to a BDO USA CMO survey at leading U.S. retailers, they forecast a modest 2.5% increase in 2013 holiday comparable store sales vs. 3.7% increase in holiday same store sales. Thus, in a likely smaller pie, there are clearly three Multicultural segments that have the ability to ring cash registers. Whether you are in Upscale Apparel, handheld Electronics, Children’s games and toys, Perfumes, Prestige Cosmetics, Luxury Goods or Gift Cards, the question is: do you have what it takes to draw Multicultural in, do you have the offering and the experience to convert them, please them and keep them talking about you?
We’d be happy to narrow your growth targets strategies for brick & mortar and digital channels through syndicated, proprietary, and Big Data inputs that drive predictive opportunity segmentation and ROI models, which help you discern and focus your limited resources where the highest market opportunities exist and determine which strategies advance maximum/efficient Total Market growth.
SSG is a strategy consulting firm driven by management P&L experience and predictive analytics. We develop fact-based business models, growth roadmaps, insights and segmentations for the Total Market and the evolving Hispanics, Multicultural & Millennial segments. We help clients focus their limited resources where the highest market opportunities exist, and which strategies advance maximum, efficient Total Market growth.