To read this content please select one of the options below:

Tight US job market may persist due to demographics

Tuesday, July 20, 2021

Significance

Shortages vary by sector and geography. The US workforce will shrink as baby boomers (born between 1946 and 1964) retire and are replaced by the smaller cohort of Generation Z (born between 1997 and 2012). Pre-pandemic, many boomers worked past retirement age, slowing the workforce decline, but the pandemic broke that trend.

Impacts

  • The US labour market holds the key to the inflation outlook and thus the timing of the Fed’s tightening of monetary policy.
  • Unemployment is set to drop below the so-called ‘natural’ unemployment level, the non-accelerating inflation rate of unemployment (NAIRU).
  • Diversity and inclusion policies will accelerate the workforce exit of baby boomers as that generation has the largest share of white men.

Related articles

Expert Briefings logo
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.