We recently compiled a report on the 20 Most Ethnically Diverse States in the US and in this article we will look at the most ethnically diverse state in the US.

Overall Diversity in the US

The United States is regarded as a melting pot of various cultures and ethnicities, but where does its ethnic makeup stand today? After the 2020 census, the US Census Bureau reported that overall, the US population had a diversity score of 61.1%. This number means there is a 61.1% chance that two randomly selected people will belong to different races or ethnicities. In 2010, this score was at 54.9%, showcasing an increase in the upcoming decade.

The 2020 census further revealed that the population under 18 had a diversity score of 68.5%, whereas those aged 18 and above had a diversity score of 58.3%. Among both sets of populations, the lowest diversity score was seen in the region of Puerto Rico, with 2.3% for the adult population, and 1.7% for those under 18. You can also check out some of the least racially diverse cities in the US. Overall, the three most prevalent racial or ethnic groups in the US were White (57.8%), Hispanic/Latino (18.7%), and Black/African American (12.1%).

Why Diversity Matters?

Ethnic diversity has positive implications not just for the general population but also for corporate organizations. In December 2023, McKinsey & Company published the fourth edition of their report on ‘Diversity Matters’. The report found that companies that were in the top quartile of ethnic representation had a 39% higher likelihood of outperformance, as compared to companies in the lowest quartile. The top quartile companies also showcased a financial advantage above other companies, which was around 27% on average.

Furthermore, companies that were in the top quartile for both ethnic and gender diversity were 9% more likely to financially outperform their peers. On the other hand, companies in the bottom quartile for both kinds of diversity were 66% less likely to financially outperform their peers. Companies within the top quartile for ethnically diverse boards also showed a 13% more likelihood to outperform competitors. This reveals that a lack of diversity can reduce profitability and may be more expensive for companies. The report also discovered that companies with increased ethnic diversity have better scores for corporate citizenship, climate strategy, and labor practice indicators.

However, despite the financial upsides of a diverse workforce, companies aren’t improving in ethnic diversity at a considerable speed. McKinsey had consistently available ethnic data for 533 companies from 2018 to 2023, during which time ethnic representation on executive teams increased from 12% to just 15%. In the United States, leading companies have 39% of their board members from historically underrepresented ethnicities, but this is still lesser than the population share of 43% of individuals being non-white. Until companies come to par with mirroring the ethnic demographics of the general population, they cannot be considered truly equitable. This is one of the reasons why, despite ethnic representation, the US is still considered one of the worst countries for racial equity.

Diversity Leaders in the US

In the American diversity landscape, Accenture Plc (NYSE:ACN), a global IT services enterprise, is one of the leading companies. In 2022, it was placed first on Fair360’s list of top 50 companies for diversity in the US. Overall, Accenture Plc (NYSE:ACN) has been on this list for 16 consecutive years. The American Indian Science and Engineering Society’s list of top 50 workplaces for indigenous STEM professionals has also recognized the company for four consecutive years. It has also been on LATINA Style Magazine’s list of the best 50 companies for Latinas to work in the US for ten consecutive years.

In its 2023 Proxy Statement, Accenture Plc (NYSE:ACN) reported that 45% of its directors are from racially and ethnically diverse backgrounds, as are the chairs of 75% of its board committees. In the US, Accenture has a total workforce of 63,244 employees, as of 2023. Within these, 45.4% are White, 24.3% are Asian or Asian-American, 12.2% are Black or African-American, 10.5% are Hispanic or Hispanic-American, and 0.2% are Native American. Compared with numbers from 2015, the White workforce has decreased by 4.9% and the Asian workforce has decreased by 8.9%. On the other hand, both African-American and Hispanic workforces increased by 4.6% and 4.2%, respectively.

Companies like Accenture Plc (NYSE:ACN) prove that building a diverse workforce is possible, especially in a country like the US. With this context, let’s take a look at some of the most ethnically diverse states in the US. You can also check out the most linguistically diverse countries in the entire world.

Our Methodology

In order to curate this list of the 20 most ethnically diverse US states, we consulted the Diversity Index by the United States Census Bureau. This Index uses the 2020 US Census to calculate the chance that two people, chosen at random, will be from different ethnic and racial groups. The higher the index percentage, the more diverse a state is. The states are ranked in ascending order of increasing diversity. For the purpose of this article, we have also included Washington D.C. (District of Columbia) as a separate state, as it has a considerable Diversity Index.

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The Most Ethnically Diverse State in the US

01. Hawaii

Diversity Index Score: 76%

Hawaii was also the most ethnically diverse state in the US during the 2010 census, a position which it has held for over a decade. Out of the state’s total population, 36.5% are Asians and 21.6% are Whites, which make up the two largest ethnic groups in the state. According to the 2020 census, only 46.7% of the total Native Hawaiian population lives in Hawaii, with the other 53% residing in other states. The second-largest population of Native Hawaiians resides in California, accounting for 14% of their entire group.

The 2020 census also discovered that over the past decade, the population of almost all of the 31 Native Hawaiian and Pacific Islander (NHPI) groups has grown. The fastest-growing singular ethnicity was Chuukese, which had a 296.2% increase from 2010 to 2020 and grew to 10,500 people. The overall largest NHPI group was Native Hawaiian, which had a 28% increase from 2010 to 2020. However, it is important to note that not all of these individuals reside in Hawaii, as discussed previously. Nevertheless, Hawaii currently ranks as the most ethnically diverse state in the US.

Curious to learn about other states that are ethnically diverse? Check out our report on the 20 Most Ethnically Diverse States in the US.

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