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The U.S. Office of Management and Budget’s (OMB) update to race and ethnicity data collection standards could mark a positive step forward for diversity, equity, and inclusion (DE&I) efforts in workplaces across the nation by ensuring data more accurately reflects those in the workforce.
The federal revisions to race and ethnicity data collection standards is the first major update since 1997, according to an article published by the Population Reference Bureau.
More specifically, under the new standards, race and ethnicity will be combined into a single question, offering respondents at least seven categories to choose from — with the option to select multiple answers.
One goal of the update is to provide more accurate representation for individuals who identify as Hispanic/Latino or Middle Eastern/North African (MENA).
According to PRB’s report, the revisions are expected to alter the sizes of population subgroups, with the Census Bureau’s 2015 National Content Test suggesting an increase in respondents identifying as Middle Eastern or North African, Hispanic or Latino alone, and Black or African American, while decreasing the number of people identifying as “white” or “some other race.”
These changes to data collection pose challenges for measuring trends in racial and ethnic population groups over time, as data comparability may be affected. However, the impact will vary depending on the size of different subgroups in a given geographic area.
The new standards could have implications for DE&I programs in businesses. With more accurate data on the racial and ethnic composition of the workforce, companies can better assess disparities and allocate resources to address them. Additionally, the revisions could impact independent workforce surveys, by providing a clearer picture of the diversity within the growing freelance and gig economy.
It’s reported that federal agencies have a 12 to 18-month timeframe to create action plans for implementing these changes. The Census Bureau has already announced its commitment to understanding and implementing the new standards. However, PRB reports that the agency-by-agency approach may lead to inconsistencies across the federal system in the short term.
