Demographics are a big piece of forward-looking analysis – and we are living in times of significant demographic shifts. An aging society, a fall in working age population, a drop in fertility rates, and a diversifying population are just a handful of examples. This recent article provides a great interactive visual via Visual Capitalist that captures one hundred years of demographic change in America.Continue reading
Societal change is a critical area of convergence that is likely to play a major role in shaping the future. Three building blocks provide an example: declining fertility rates, an aging population, and a fall in working age population. This article connects those dots visually. In looking at the global decline in fertility rates, the article illuminates the impact to global stability, as a given area needs an overall total fertility rate of 2.1 to keep a stable population. But why are women having fewer children? According to Dr. Max Roser, the founder of Our World in Data, most of the literature boils down to three main factors:Continue reading
In a recent insights report, authors Karen Harris, Austin Kimson and Andrew Schwedel look at macroeconomic forces and their impact on labor in 2030. The Collision of Demographics, Automation and Inequality will shape the 2020s – a collision that is already in motion. By 2030, the authors see a global economy wrestling with a major transformation, dominated by an unusual level of volatility. Here’s a summary of these three forces:
AN AGING WORKFORCE
As the global workforce ages rapidly, our authors forecast a slowing of U.S. labor force growth to 0.4% per year in the 2020s, thereby bringing an end to the abundance of labor that has fueled economic growth since the 1970s. Even as longer, healthier lives allow us to work into our sixties and beyond, it is not likely to offset the negative effects of aging populations. This labor force stagnation will slow economic growth, with negative side effects including surging healthcare costs, old-age pensions and high debt levels. On the positive side, supply and demand dynamics could benefit lagging wages for mid-to-lower skilled workers in advanced economies through the simple economics of greater demand and lesser supply – but that leads to their second major force: automation.