Minority groups — especially Asians — are flexing greater economic and educational muscle. Ethnic and racial minorities have attained buying power at a faster rate than their White counterparts, according to the 2013 Multicultural Economy report released last week by the University of Georgia.
Since 1990, the Athens, Ga., institution has conducted the statistical overview of buying power (the amount of income left after taxes, excluding savings) of African-Americans, Asians, American Indians and Hispanics. The report outlines where and how minority groups spend their money and highlights consumer trends.
Of the nation’s total $12.4 trillion buying power, Hispanic consumers in the United States will command a $1.2 trillion market in 2013 (up from $1.1 trillion in 2012, a 6.2 percent rise) due to high birth rates, immigration and an increase in Hispanic entrepreneurship. African-American consumers will account for $1.1 trillion (up 4.5 percent), Asians will add $713 billion (up 6.2 percent) and American Indian consumers will contribute $96 billion (up 5.1 percent). Buying power for Whites increased from $10 trillion to $10.4 trillion (3.9 percent).
Such data has long been used by corporations, advertisers, manufacturers and the media to target these groups with products and services. It has helped businesses identify growth opportunities and targeting clientele more effectively. Now, such trends are signaling the importance of education as a contributing factor to increased buying power among minority groups. Education not only equips these underserved groups with the skills needed for higher paying, more stable jobs, but it also helps minorities overcome financial hardships.
Researchers cited educational attainment as one of the contributing factors of the Asian consumer market’s significant growth following the recession. High levels of educational attainment shielded the Asian market from the recession and allowed them to take advantage of the economic recovery, explained Jeff Humphreys, author of the report. About 51 percent of Asians have a bachelor’s or advanced degree compared to 31 percent of Caucasians, and 21 percent of African-Americans have a bachelor’s degree or better.
“Having a college or advanced degree just provides the ticket needed to enter the occupations that are proven to be more resistant to recession,” said Humphreys, noting that Asians were less likely to be in government, construction and other fields severely affected by the economic downturn. “Rising levels of educational attainment are benefiting all minority groups, but it has benefited Asians the most.”
