The demographic trends in the United States are such that unusually slow labor force growth in the next 15 years is unavoidable. A key feature of this trend is large variations in the magnitude of the slowdown across geographies. However, firms that act proactively can mitigate the impact of the looming labor shortage on their bottom line.
Highlights of this report include:
- An unprecedented period of slow working-age population growth
- Higher labor force participation is unlikely to make a big difference
- Immigration may be key to expanding labor supply
- National trends mask major differences among indivudual states
- Business implications