The US will soon be without a workforce
Many international, and in fact American companies, show class when it comes to efficiency, great management, building processes and motivating staff. However, let's think about how many such companies we know? Ten? A couple hundred? How and with whom do other millions of American companies work?
The big domestic problem in the US is the workforce. Many factors play against growth and rapid recovery. For example, now only 65% of capable, economically active men over 16 years of age work in the economy. In the 50s, that figure was as high as 85%—a loss of nearly 15 million jobs over the years. What's happened?
Firstly, the population is aging - the average age is rising and many can no longer work. Secondly, there are many who are “parasites” of the economic system: they do not create new things, but use existing assets and the growth of their value. For example, those who live on rent receive interest and dividends. This is not bad for people, but it is harmful for the economy. Thirdly, the generation born in the area of the digital revolution (after 1995) is not ready to work hard in “dirty” jobs and low-level services. The labor force is degrading and being replaced by migrants. Fourthly, automation and productivity growth have led to the fact that there is no demand for labor, but it is possible to pay benefits and subsidies. And again the degradation of the labor force: they give money, but there is no need to work.
Not to mention that in the United States the demographic situation is better than in Europe, but it is still far from ideal. In the 50s, natural population growth (borns minus deaths) was 14,1 people per 1000 inhabitants. In the 2000s – 5,9. In 2010-2019 – 4. In 2020-2021, due to Covid, the figure fell to 1,3.
Population growth from 2000 to 2021 was 56,7 million, of which 25,6 million were migrants. Almost half! Despite this, the number of migrants to the United States has been falling on average since the 90s.
As a result, not only the natural population growth decreases, but also the number of migrants into the country. Given the fact that many locals (and visitors) are not ready to work hard, there is no one in particular to restore economic growth.
Source: Telegram channel “Business in America”
