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Shrinking Workforce Shrinks

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A population that consists of a higher percentage of older adults presents various challenges and opportunities to society. Some of these challenges include a shrinking workforce, reduced payroll tax revenues, increased demand on healthcare systems and social services provided as public goods by the government. Immigration may present a solution towards a shrinking workforce, but immigration policies need to be focused on educated and highly skilled individuals that will participate in the workforce. Increases in demand for healthcare services drive an indirect demand for the factors of production for healthcare services, such as the demand for nurses. This increased indirect demand drives further increases in demand for other services such …show more content…

There are a number of socioeconomic issues this condition creates. One is that the growth of an economy is predicted by economists using two statistics, the size of the workforce and its level of productivity (Hoagland, 2017, p.17). In advanced economies, as the population moves to a higher concentration of older adults, a larger percentage of the workforce retires and is not replaced, shrinking the size of the workforce. Unless these workers are replaced through immigration or productivity increase offset this decline in workforce size, the economy will contract.
One other factor that may influence the size of the workforce is young adults entering the workforce. According to Hoagland (2017, p.17) young adults may delay their entry into the workforce deciding instead to focus on education. This factor may initially have an affect on the size of the workforce, this effect is temporary as these young adults do eventually enter the workforce and do so better educated and skilled increasing their productivity. Hoagland (2017, p.18) goes on to state that this increase in productivity could counter a shrinking …show more content…

This upward pressure may be positive for workers initially, but wages have a direct impact on the profitability and competiveness of business, especially in the global economy. Batalova and Lowell (2007), stated to meet the demands of the global economy internationally oriented business depend on a workforce that is highly skilled. In the face of a shrinking workforce, business turn to immigration to satisfy their demand for these highly skilled workers. This places additional demand on these highly skilled workers from less economically developed

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For example there has been an increase in immigration population and trends after World War 2 and will be more of an increase in the 21st century. This resource also explain how immigration has a large impact on the size of the active labor force, which could be a concern for demographers and economic forecasters as who will pay for future social programs. The author is fluent and articulate when presenting ideas and information throughout the text. The author also presents references when presenting facts and ideas to back up their concepts making this resource dependable.

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The U.S. population is growing older as the individuals from the baby boom enters old age and retirement. As a result, the labor force will increasingly depend upon immigrants and their children to replace current workers and fill new jobs. Food deserts can defined as parts of the country where fresh fruit, vegetables, and other healthy whole foods, are hard to come by, usually found in poverty-stricken areas. This is because of a lack of grocery stores, farmers’ markets, and healthy food providers. This has become a big problem because while food deserts are often short on whole food providers, especially fresh fruits and vegetables, instead, they have numerous local small mini-marts that provide a lot of processed, sugary, and fatty foods

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Between 2010 and 2050, the United States population ages 65 and older will nearly double, the population ages 80 and older will nearly triple, and the number of nonagenarians and centenarians—people in their 90s and 100s—will quadruple. (KFF, 2015) Trustees of Medicaid are forecasting that in 2024, Medicaid will start running out of funding. Although there is little evidence in the trustee’s projections it is still something that needs to be looked as more and more people are getting older and are needing benefits vs a number of people putting in. Every day there are 10,000 people turning 65 or older.

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Though the average life expectancies have continued to increase since the creation of the baby boom generation, those who live longer lives will most likely be burdened with the constantly increasing cost of healthcare in the United States. More money required to be paid to healthcare for the betterment of older life means less money that can be dedicated to lifestyle choices like foods, living arrangements, etc.. With the baby boomers reaching retirement age, the social security fund will most likely decrease and may be expected to go bankrupt by the sheer amount of people to retire in upcoming

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A report was done by the Research Center of Immigration Studies according to the report the RCOI found a correlation between the decline in American youth (16-24 years of age) employment and a significant increase in the amount of immigrant employment over the last decade. This means Illegal immigrants are taking jobs and there are no jobs left for the youth to take. The reason for this is the youth must then take wages lower than the immigrants to get the jobs which is little to none. Since most job immigrants take are unskilled, low end jobs these usually do not require a lot of experience. An example, usually jobs that don’t require a high school education, now guess who is an unskilled and doesn’t not have a high school diploma the youth of America.

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The workforce in most industrialized countries is aging and becoming more age-diverse. And immigrant workers play a large and important role in our economy and society. As child-care providers, food preparation workers, home health care aides, software programmers and construction workers, these workers constitute a significant labor force and provide services that millions more workers depend upon. Currently, I am working with a significant shortage of certified nursing assistants (CNAs) in our CCRC communities.

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Recent years have seen restriction of migrants, leading to shortages of workers especially in the ethnic sector furthermore (Ram et al,2002) observed that labour market pressure on businesses on issues of undocumented workers puts off employees from employing workers who may have the necessary skills.

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“I want to emphasize that to address the shortage of scientists and engineers, we must do both – reform our education system and our immigration policies. If we don’t, American companies simply will not have the talent they need to innovate and compete.” As Bill Gates stated in 2008, immigration policies for skilled workers have always been an issue. High-tech firms advocate passionately about reforming immigration systems as they are facing shortage of skilled workers, but labor unions and conservative immigration groups, by contrast, strongly oppose to it. As one of the most immigrant friendly countries in the world, the United States certainly has a large number of foreign skilled workers as well as foreign students inflow every year.

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So, a rise in immigration will probably lead to a decline in salaries in certain job areas, while a rise in salaries is acquired in some other labor

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The key challenge posed by an ageing population is the need to maintain productivity with a sustainable labour force, thereby translating to a better GDP to debt ratio. However, factors that bear upon the question

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Same with the previous research, this analysis finds no significant effect of immigration on net job growth for native-born workers. This suggests that the economy absorbs immigrants by expanding job opportunities rather than by displacing native-born workers in the United States. Moreover, the work force, like the economy, is not fixed and static. The U.S economy itself is dynamic, fluctuating, and creates hundreds of new jobs every

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Based purely on secondary sources consisting of authoritative literature, this will be a theoretical effort with the objective, not to seek out causal links, but to inspire thought and drive future research into socioeconomic issues related to older populations and through inference, developed economies. These are issues faced currently by developed economies and will affect developing economies as they progress. Such issues, if not dealt with, may lead to economic

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“The aging and declining population will have far-reaching impacts. Declining fertility rates will possibly increase immigration. The structure of family and society will inevitably change,” said Toshihiko Fukui, a Japanese economist and central banker. He was the 29th Governor of the Bank of Japan and a Director of the Bank for International Settlements. The aging population of Japan which is supposed to be handled and resolved by the government is currently not being taken care of.

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Meanwhile, China’s elder population is expected to rise from 110 million in 2010 to 210 million in 2030. Population aging may affect output for two reasons. First, population aging means that large portion of people stop working because their age is not encouraged them to work anymore. If there are no compensation mechanisms at work for the elder, there will be only a small number of population engaged in productive work. It will make total output per capita will decline.

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