U.S. Labor Force Growth Likely Nearing Its Peak Amid Aging Population and Slowing Immigration
By
Alison Felix
Summary
The U.S. labor force faces significant headwinds from a rapidly aging population, with the share of Americans aged 65+ rising from 13% in 2011 to a projected 19% by 2025. Despite these demographic pressures, the labor force has grown substantially since pre-pandemic levels, buoyed by strong participation rates and immigration. However, the article argues the labor force is likely nearing its peak, as further increases in participation rates are unlikely to fully offset the combined effects of slowing immigration and continued aging of the population.
Source
bskyU.S. Labor Force Growth Likely Nearing Its Peak Amid Aging Population and Slowing Immigrationkansascityfed.orgKey quotes
· 4 pulledWhen the first baby boomers reached age 65 in 2011, just 13 percent of the U.S. population was age 65 or older.
By 2025, this share had risen to 19 percent and is expected to rise further over the next two decades.
Thus far, strong labor force participation rates and immigration flows have more than offset downward pressure from an increasing number of retirements.
The U.S. labor force is likely nearing its peak: Increases in participation rates are unlikely to fully offset headwinds from slowing immigration and continued aging.
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