Aging and a Strong Economy
Posted by Chip Block on December 18, 2019 5:05 PM EST
Just now I read a short piece online in MSN.com's Money section which had been published by The Wall Street Journal. The article was titled "The Demographic Threat to America's Jobs Boom"....
...and it was written by Greg Ip. It suggested that if the economy continues to grow then we will run out of workers to fill the jobs that are being created as a result of the growth.
Here's a couple of excerpts from the article that grabbed my attention, beginning with the first one below:
"The U.S. job market continues to blow through expectations, generating 200,000 new jobs month after month and driving unemployment far below what economists thought a decade ago was the lowest possible level".
And a little further, the following quote built on the point that economic success and job creation can be impacted by the aging population, less immigration, death rates, and lower U.S. birth rates.
"Yet eventually it will hit a constraint: The U.S. will run out of people to join the workforce. Indeed, this bright cyclical picture for the labor market is on a collision course with a dimming demographic outlook. While jobs are growing faster than expected, the population is growing more slowly. In July of last year, the number of Americans stood at 327 million, 2.1 million fewer than the Census Bureau predicted in 2014 and 7.8 million fewer than it predicted in 2008. (Figures for 2019 will be released at the end of the month"The U.S. fertility rate—the number of children each woman can be expected to have over her lifetime—has dropped from 2.1 in 2007 to 1.7 in 2018, the lowest on record. From 2010 through 2018, there were 3 million fewer births and 171,000 more deaths than the Census Bureau had projected in 2008. Death rates, already rising because the population is older, have been pressured further by “deaths of despair”—suicide, drug overdoses, and alcohol-related illness".
The bottom line: while it is very good for older adults to continue to find meaningful work and to enjoy personal economic prosperity well into their retirement years, it's good for the country and the economy for them to do that as well. Aging baby boomers are good employees, are good consumers and are part of the equation of keeping the healthy economy growing and providing workers with skill, experience and time to offer employers and their customers and stakeholders.
So, here's a link to the entire article, if you are interested in reading it in its entirety: https://www.msn.com/en-us/money/markets/the-demographic-threat-to-americas-jobs-boom/ar-BBY7prC