02/29/2024

Let's Talk About Our Declining Population and its Workforce Impact

The U.S. will soon bear witness to its most shallow labor market

With fewer Gen Zers entering the workforce than needed to replace retiring boomers, the U.S. will soon bear witness to a more shallow labor market than ever before. Further complicating the issue are the skills and experience Baby Boomers are taking with them when they leave the workforce. Even if there were enough younger candidates to replace retiring Baby Boomers, losing decades of expertise threatens productivity, innovation and the ability to maintain institutional knowledge.

While many leaders are hoping that time and changing market conditions will bring relief to hiring woes, the outlook is less than ideal. Despite ongoing inflation and economic uncertainty—two factors that historically turn labor markets in employers' favor—77 percent of businesses struggled to fill open positions last year. The general sentiment is that it's only a matter of time before the market turns. But in reality, the fact that it hasn't already suggests our challenge lies deeper than expected.

The volatile labor market is only one part of the equation. Solving the talent supply chain crisis is a much more complicated math problem involving multiple variables an organization must consider, including declining birth rates, aging demographics and retiring Baby Boomers.

Please select this link to read the complete article from Fast Company.