Demographics

Demographics are data or information about human populations used to study a population. Examples of demographics include age, ethnicity, and median income. Demographic data is helpful in both the private and public sectors as it helps companies and governments decide where their money is allocated.

Demographics Definition

To understand Demographics, we must first look at the definition of Demography. Through the study of Demography, we can determine Demographics.

Demographics Information

In a broad sense, demographics are data or information about human populations that demography uncovers. Demographics can include many factors like age, race, and the region in which a person resides and works. They also may reflect a person's background and upbringing and can affect how people think, believe, and behave in a given society. Policymaking and legislative decisions made by politicians and their governments often rely on demographic data. Demographics are critical for policymakers to make legislative decisions because demographic data is the primary driver for the allocation of public funds.

At its core, demography aims to utilize data to illustrate the ever-changing structure of human populations within a set parameter, whether a given city, county, state, or country.

Demographics Segmentation

Demographic segmentation refers to the categorization or organization of people into segments based on their demographic characteristics. These may include age, gender, income, education, religion, nationality, etc.

Segmentation allows demographers to obtain precise insights into particular data, especially consumer data. Demography and resulting demographics are highly linked to economics, as the Demographic Transition Model (DTM) explains.

Demographic Transition Model (DTM)

Fig. – 1 DMT in 5 Countries Example.

The Demographic Transition Model (DTM) consists of arguably the two most critical demographics of any country: birth rate and death rate, along with their historical trends as a country develops economically.

Each stage is characterized by the relationship between birth rate (annual births per one thousand people) and death rate (yearly deaths per one thousand people).

As these rates ebb and flow over time, their combined impact affects a country's total population. Typically, within the DTM model, a country will progress over time from one stage to the next as various socioeconomic forces act upon the birth and death rates.

Demographics in the United States

Many countries conduct a census every 5 or 10 years to gather critical and relevant demographic data on changing populations¹. For example, the census takes place every ten years in the United States.

Demographics reflect a person's background and upbringing and affect how people think, vote, and believe. We can learn about people and their political beliefs when studying demographics.

For example, let us take a broad overview of demographics in the United States. According to the 2010 census, approximately 308.7 million people live in the United States. Of those 308.7 million people, 65% identified as non-Hispanic Caucasian, 15.4% Hispanic, 13.5% African-American, 5% Asian, and 1.2% other ethnicities⁴.

Rural vs Urban

In addition to racial and ethnic groupings, another way to categorize someone's demographics is by looking at whether they live in a rural or urban environment.

Regarding politics, this can be a critical demographic difference because the needs of those two groups are vastly different. Residents of urban areas may advocate that the government pay for better public transportation like bus routes and subways. In contrast, those living in rural areas may desire better-paved roads in general or perhaps agriculture subsidies, for example.

In general, the U.S. government tends to respond more to the wants and needs of those living in urban areas as they make up a much more significant percentage of the U.S. population.

Geographic Regions of the U.S.

Fig. 2 – Percent Change in County Population.

In addition to urban and rural, there is another way to divide the United States based on location. The United States can be divided into four central geographical regions: Northeast, South, Midwest, and West.

Currently, the South and West are the fastest growing regions by population. This region is coined "the Sun Belt" ⁶ due to its warm temperatures. In contrast, the Northeast and Midwest regions have grown much more slowly and are sometimes referred to as "the Rust Belt" because they are home to older industrial cities which played essential roles in founding the U.S. The location of a given state can dictate its residents' concerns.

For example, residents of California may be concerned about utility-related issues like water and energy. In contrast, residents of Pennsylvania or Ohio may be more concerned about protecting jobs in the coal, automobile, and steel industries.

Due to the large population in the Sun Belt, the concerns of residents of states in those areas tend to draw more attention from the federal government.

Age and Income

Another demographic that can be useful to study is age. Age often plays a significant role in an individual's political beliefs. In 2010 there were over 40 million baby boomers in the United States⁷.

The federal government will need to spend more money on Social Security, Medicare, and other programs that meet the needs of the elderly population, which puts a significant financial strain on the younger population.

Income is another demographic that affects U.S. government policy. In 2010, the median income in the United States was $49,445⁹. In other words, 50% of the population made over $50,000, and 50% earned less than $50,000. This median decreased from the median income before the economic recession in 2008.

When people's incomes decrease, so does the amount they pay in taxes, meaning the government eventually possesses less capital. However, if people have less money, they often require more government assistance, but the government has less money to provide for its residents due to fewer taxes.

Demographics Wrap-Up

Demographics help demographers, lawmakers, and the greater public understand the diverse needs of different groups of people so that ultimately, governments, institutions, businesses, and other organizations can allocate resources and help sustain a functioning society.

In a broad view of these demographics, we can see that the United States has an incredibly diverse population.

Its diverse backgrounds require diverse needs. Compared to other countries with lower rates of immigration and ethnocultural diversity, the U.S. can provide unique demographic data, which may help pinpoint society's specific needs.