By Jade Densmore
Where is the job market going to be in the future? I have one answer and two reasons. My answer is that within the next five years or so, the US will have a labour surplus but it may be one of the few (if not the only) country to have such. Long term, there will be a labor crisis or shortage across many various countries.
Reason number one: by 2030 the baby boomers, who are a significant portion of today’s labor force, ages 30-65, will have retired. Quite frankly there are not enough bodies to replace the ones that will be lost. Germany specifically will face the reper cussions of a labor shortage, as they don’t have enough women in their workforce.
In order to properly counteract this crisis, they will need to integrate more women into their workforce and raise the retirement age. The number of women in the workforce has consistently grown over the past decade(s) and will most likely continue to increase; however, that alone will not stop the labor shortage.
Reason number two: My next reason is that based off the article I read before completing this piece, we face a large number of long-term unemployed people, and the longterm unemployed are less likely to receive and maintain a permanent job or career. We faced a high rate of unemployment during the recession of 2008 and even though the economy has been recovering, the unemployment rate did not follow suit as quickly.
Another thing to look at and note is the full employment of today. US expansion has economists thinking that we are at or near full employment. Not everyone has a job, as can be demonstrated by taking a walk around Brunswick and looking at the various businesses hiring one or more positions. However, it appears that our current rate of unemployment won’t cause inflation, or at least that’s what we are all thinking.
Overall the labor force is going to vastly decrease within the next twelve years and there are plenty of things that the economy, and individuals, can do about it. With automation and technology, this may become an issue.
We as a society and government can counter that by focusing on education to ensure that the labor force has the skills needed to work alongside this new technology. We also need to continue to encourage having women in the workforce.