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Key Diversity in the Workplace Statistics for 2023

Dunja Radonic
Author: 
Dunja Radonic
Nikola Djordjevic
Editor: 
Nikola Djordjevic
13 mins
March 8th, 2023
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Key Diversity in the Workplace Statistics for 2023

The need for companies to improve diversity and inclusion is rising. Most US employees consider DEI important, while younger workers consider the lack of a company’s DEI efforts a dealbreaker. So let’s look at the latest diversity in the workplace statistics and learn more about the demographics that make up the workforce, the benefits of diversity, and the challenges employees face.

Top Diversity in the Workplace Statistics to Know in 2023

  • The female labor force participation rate was only 47% in 2022.

  • About 386 million of the global working-age population have a disability.

  • 74% of US workers say that corporate investment in DEI is very or somewhat important.

  • The largest share of the US workforce is 55 and older.

  • LGBT+ people make up around 6.28% of the US workforce.

  • White people make up 77% of the US workforce.

  • One in ten people have experienced ethnically or racially motivated hostility since 2020.

  • Ethnically diverse companies are 36% more likely to outperform their competitors.

  • The outcome gap between the most and least gender-diverse firms can reach 48%.

  • For every 100 men promoted, only 87 women are promoted from entry-level to manager.

General Workplace Diversity Statistics

Globally, the female labor force participation rate was barely 47% in 2022, down from 52% in 2019.

Due to the pandemic and geopolitical challenges, general workforce participation dropped for men (from around 80% to 72%) and women. However, global diversity statistics reveal the results for gender parity are the worst since measurements started, and economic parity is now equal to only 62.9%.

(World Economic Forum, ILO)

About 386 million of the global working-age population have a disability.

When speaking about diversity in the workplace, stats often don’t show the whole picture. The International Labor Organization reports that in some countries, the unemployment rate for people with disabilities reaches an alarming 80%.

(ILO)

Between 15% and 20% of people are neurodivergent and have more issues with employment.

Diversity facts that often aren’t mentioned concern neurodivergent people, including people with autism, ADHD, dyslexia, dyspraxia, and others. Neurodivergent people often have higher unemployment rates and face unique challenges in the workplace. For example, it is estimated that the unemployment rate of Americans with autism is 42%.

(World Economic Forum)

74% of US workers say that corporate investment in diversity, equity, and inclusion is very or somewhat important.

Unsurprisingly, the share of people who say DEI matters rises when they come from groups that are affected by DEI policies. According to statistics on diversity in the workplace, 76% of women say investment in DEI matters, as do 77% of Hispanic workers, 79% of Black/Non-Hispanic workers, 80% of parents, and 82% of Asian-American and Pacific Islander workers.

(Glassdoor)

41% of employees wouldn’t work for a company that isn't working on DEI.

The lack of diversity in the workplace, according to statistics, has the potential to discourage potential employees from applying and staying. The younger the employees, the more they value DEI, with the percentage rising to 48% for the younger cohort and dropping to 30% for the older group.

(Randstad)

The feeling of inclusion varies more depending on the hierarchy than on personal characteristics.

One of the more encouraging diversity and inclusion facts is that overall, 83% of global respondents say they feel included at work most or all of the time. However, feeling included at work is more common for managers than staff, as 92% of senior executive managers say they feel included, as do 86% of managers and 76% of staff.

(ILO)

Respondents with a disability are 6% less likely to say they are generally treated with respect at work.

Compared to 87% of respondents without a disability, only 81% of respondents with a disability report feeling they are treated with respect at work. Also, at 66% (vs. 75%), workers with disability are less likely to report high levels of personal productivity and high levels of well-being (52% vs. 57%), as inclusion statistics show.

(ILO)

US Workforce Diversity Statistics

The largest share of the US workforce is 55 and older.

When it comes to age diversity in the workplace, statistics reveal that people aged 55 and older make up 23.4% of the US workforce, or its largest part. The second-largest cohort at 22.7% are workers aged 25 to 34, followed by workers aged 35 to 44 at 20.8%, and workers aged 45 to 54 at 20.1%. Workers aged 16 to 24 are the smallest share of the workforce at 12.9%.

(BLS)

In the US, female labor participation is at 57.0% in 2023.

Female labor participation in the US is more than 10 percentage points lower compared to male labor participation, which stands at 67.9%. Diversity statistics show that the participation of women in the labor force is slowly returning to pre-pandemic levels. For example, in January 2020, 57.8% of women were a part of the workforce, then the share fell to 54.6%, and it has been rising since.

(US Department of Labor)

LGBT+ people make up around 6.28% of the US workforce.

When talking about how diverse the workforce really is, statistics about LGBT people offer another important insight. Around seven million people in the private sector and one million people in the US public sector are gender and sexual orientation minorities.

(UCLA, Center for American Progress)

Only 21.3% of Americans with disabilities were in the labor force in 2022.

One in eight Americans with a disability isn’t in the labor force, compared to one in three Americans without a disability, which can be partially explained by the number of the elderly among people with disabilities. However, diversity in the workplace statistics from 2022 showed that for people with a disability in the labor force, the jobless rate was double compared to that of people without a disability.

(BLS)

White people make up 77% of the US workforce.

When it comes to racial diversity in the workplace, statistics say the following: White people make up 77% of the US workforce, followed by Black people at 13%, and Asian people at 7%. Multiracial people account for 2% of the workforce, American Indians and Alaska Natives account for 1%, and around 0.5% are Native Hawaiians and Other Pacific Islanders.

(BLS)

Gender Diversity in the Workplace: Statistics and Facts

61% of women say they would want to work mostly remotely, compared to 50% of men.

Some of the latest diversity and inclusion stats show women are 10% more likely to leave their jobs if there is no hybrid work option but also 15% less likely to have jobs that offer hybrid work. The McKinsey report offers another insight into the stats behind remote work, showing that women also experience fewer microaggressions when working remotely, especially women of color, LGBTQ+ women, and women with disabilities.

(World Economic Forum, McKinsey)

The difference in performance between the most and least gender-diverse companies can reach up to 48%.

Organizations with more than 30% of women in their executive teams are 25% more likely to outperform the industry average compared to companies with 10% to 30% of women executives. Regarding the benefits of gender diversity in the workplace, statistics show performance improved over time (21% in 2017 and 15% in 2014). In another report, 57% of enterprises said gender equality initiatives helped them improve their business results.

(ILO, McKinsey)

For every 100 men promoted, only 87 women are promoted from entry-level to manager.

The study calls this issue the broken rung. If there were an equal number of men, women, and women of color at entry level, for every 100 men promoted, only 87 women would be promoted to manager and only 82 women of color. The numbers get worse for Latinas, as for every 100 men, only 75 Latinas are promoted from entry-level to manager. As we get to senior levels, the diversity rate decreases.

(McKinsey)

The amount of household work stays the same as women progress at work but decreases for men.

Some issues in building a diverse workplace, according to statistics, stem from women being overworked at home. The percentage of employees at entry level who do all or most of the housework and caregiving is 30% for men and 58% for women. As women become first-level managers, nothing changes regarding home labor, but the percentage drops to 21% for men. As senior managers or higher, 52% of women—but only 13% of men do all or most of the housework.

(McKinsey)

Women make up 10% of Fortune 500 companies’ CEOs as of 2023.

As of January 2023, statistics about diversity in the workplace list 53 female CEOs in Fortune 500 companies, which is the first time it has happened since the list was started 68 years ago. When it comes to all companies globally, the median share of women in managerial positions is 32%, while the percentage drops below 30% for senior managers and top executives globally.

(ILO, SHRM)

LGBT+ Workplace Diversity Statistics

34.2% of LGBT employees have left a job because of discrimination at work.

Diversity and inclusion stats also show that closeted LGBT+ employees are 73% more likely to plan on changing their job in the next three years compared to employees who are out, mostly due to the stress of keeping their private life hidden. In times of the Great Resignation, employers need to create a safe work environment, especially as a fifth of Gen Z Americans identify as LGBT+.

(UCLA, Harvard Business Review)

LGBT employees of color were more likely to report some forms of discrimination and harassment.

Compared to 18.3% of White LGBT workers, 29% of LGBT employees of color said they had been passed down for a job based on their LGBT status. They were also more likely to report higher levels of verbal harassment, at 35.6% compared to 25.9% for White LGBT workers.

(UCLA)

Trans employees were much more likely to report hiring and other issues.

Compared to 21.5% of cis LGB employees who said they were not hired due to being LGB, 43.9% of trans employees reported the same experience, as diversity and inclusion statistics reveal. They were also more likely to experience sexual harassment within the last five years and more likely to engage in covering behaviors.

(UCLA)

Ethnic and Racial Diversity in the Workplace: Statistics and Facts

Ethnically diverse companies are 36% more likely to outperform their competitors.

When it comes to the benefits of diversity in the workplace, statistics show that the most ethnically diverse companies yield higher returns to shareholders compared to companies that are in the second-best quartile regarding diversity. This also held true in 2017 and 2014, when the results showed a 33% and 35% increase in likelihood, respectively.

(McKinsey)

One in ten people has experienced racially-motivated hostility since 2020.

Since the start of the pandemic, there has been an increase in hostilities against minorities in the workplace, as statistics show. 42% of Black respondents, 27% of Asian respondents, 22% of Hispanic, and 21% of multiracial respondents reported an increase in racially motivated hostility, as did almost 1% of White respondents. Women from ethnically diverse backgrounds reported experiencing hostility more frequently.

(Project Include)

49% of Black employees are thinking about quitting.

The combination of the Great Resignation and hostility towards minorities created one of the least surprising workplace diversity trends. According to Indeed, 43% of the workers who wanted to quit experienced microaggressions. 54% of workers said they were expected to educate on diversity which increased their workload and contributed to burnout for 42%. (Indeed)

What companies invest in terms of DEI and what Black employees want are different things.

While diversity in the office matters to 74% of all US employees, company efforts are often performative rather than meaningful. For instance, Black employees said that DEI efforts they want to see include pay transparency and equity (58%), flexibility (52%), and increased representation (44%). By contrast, companies invest in diversity committees (cited by 44% of respondents) and employee awareness events.

(Indeed)

At $1,496, Asian employees have the highest median weekly salaries.

The amount that the average American makeslooks different depending on ethnicity. For example, Asian full-time employees in the US have the highest median weekly earnings of $1,496, followed by Whites earning $1,111. However, Black and Hispanic full-time employees have significantly lower earnings per week, with $896 and $837, respectively.

(BLS)

1.15 million or 19.9% of employer businesses in the US are minority-owned.

Diversity stats show that the highest share of businesses is owned by Asian Americans and that they employ about 5.2 million people. 6.5% of all businesses in the US is Hispanic-owned, while 140,918 is African-American-owned. When it comes to non-employer businesses, small business statistics point out that 41% of owners are women, and 32% are minorities.

(US Census Bureau)

The Takeaway

Diversity in the workplace statistics reveal that companies are putting in effort in improving DEI. However, progress is still slow. The pandemic has affected women around the world and reduced economic parity. However, the largest companies, such as Fortune 500 companies, are slowly increasing the number of women CEOs.

At the same time, hostilities towards minoritized people have been increasing since the pandemic started, making the workplace more stressful. This has caused a number of employees to reconsider their current jobs, which should get employers worried, as diversity facts and statistics do show that diverse businesses have higher chances of outperforming their competitors.

Workplace Diversity FAQ

How many companies lack diversity?
How do you measure diversity in a team?
Are more diverse companies more successful?

Sources:

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Contributors

Dunja Radonic
Dunja is an English Literature graduate with years of experience as a writer and translator within the financial sector. She loves diving into as many reports and numbers —especially about topics like personal finance that still need some translating to the public. When she's not working, you'll find her running wild with her pack of dogs, playing board games, or bingeing on pop science videos.
Nikola Djordjevic
Nikola has over five years of experience in content management. During that time, he’s worked on over twenty websites in a diverse set of niches, ranging from healthcare to finance—most of which he helped build from the ground up.
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