Updated · Greater Baton Rouge Business Report · Aug 3
US Young Worker Shortage Could Lift Wages by 2040 as Housing Surplus Pressures Prices
Updated
Updated · Greater Baton Rouge Business Report · Aug 3
US Young Worker Shortage Could Lift Wages by 2040 as Housing Surplus Pressures Prices
3 articles · Updated · Greater Baton Rouge Business Report · Aug 3
Summary
By around 2040, retiring Americans are projected to outnumber new entrants to the labor force, a shift demographers say could make today’s children the first generation since the 1970s to out-earn their parents.
That squeeze is expected to raise pay fastest for younger workers as shortages deepen in energy, construction, transportation, healthcare and retail, with some states already struggling to fill jobs.
Housing could also feel the demographic shift: if homebuilding stays strong while population growth slows, parts of the country may face a surplus of homes and softer prices, especially in Florida and Texas.
Immigration and AI remain major wild cards, and experts note earlier demographic forecasts often missed how new workers, social change and economic shocks can overturn long-range predictions.