Jason HartmanCEO of Empowered Investor and Real Estate Tools

SHOCKING Impact Of Demographics on Labor Shortage!

Name: SHOCKING Impact Of Demographics on Labor Shortage!
Uploaded: 2024-02-14T23:34:35+00:00
Duration: 59 s
Channel: Jason Hartman
Description: In this commentary, the speaker highlights that a record number of people are turning 65 this year, creating a massive wave of retirements that is…

14 Feb 2024 · 1 min

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In this commentary, the speaker highlights that a record number of people are turning 65 this year, creating a massive wave of retirements that is constricting the labor market. He argues that low birth rates across multiple generations—Baby Boomers, Gen X, and Millennials—mean there are insufficient younger workers to replace those exiting the workforce. This demographic imbalance will cause a persistent labor shortage lasting many years, keeping wages elevated and putting upward pressure on inflation. The speaker frames the issue as systemic and largely beyond policy control because it is driven by entrenched demographic trends.

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This year, we have a record number of people, the most ever in history, turning 65 years old. And as such, this is constricting the labor market. And this shortage of labor is going to last for many, many, many years. So with that, we will continue to see a strong labor market for quite a while. That is the likelihood, as the shortage just persists because of the demographics. People are aging out of the workforce and they are retir, and there's just not enough people to replace them. My generation, the Gen Xers, didn't have enough children. The baby boomers didn't have enough children, and certainly the millennials are not having enough children. So this labor shortage is likely to persist for a very, very, very long time. And that will keep wages high. It will put upward pressure on inflation. And this is just going to be a systemic issue because of demographics, which are very, very difficult to influence or choose.