D'Ann Petersen and Laila Assanie
Federal Reserve Bank of Dallas
October 2005
Rich natural resources, abundant land, a central location within the United States and a business-friendly environment have long attracted both immigrants and U.S. natives to Texas. As a result, the state’s population is faster growing, younger and more diverse than the nation’s.
These rapid demographic changes present challenges for the future. As the state’s baby boomer population ages, more demands will be placed on housing, health care and social services. Hispanics, already a dominant force in Texas, are expected to become the majority population group by 2020. The significant increase in this population (both immigrant and native) has far-reaching implications for education, housing and the labor force. The key issue facing Texas will be to reduce the economic and educational disparities prevalent among the state’s ethnic groups as the population continues to grow and evolve.
This article looks at population growth and demographic changes of recent decades. Then, with projections from the Texas State Data Center, we examine some sectors of the economy that will be challenged by these demographic forces in the coming decades.
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