The Congressional Budget Office released an interesting demographics report today. The report is projecting a decline of the labor force by 2051.
Changes to projected rates of fertility, mortality, and net immigration mean that the population will be older, smaller, and grow more slowly, on average, than CBO projected last year. CBO now expects the population to be 1.7 percent smaller (equaling 6.5 million fewer people) in 2051 than it projected last year.
CBO.gov
The report also bases many of the projections on the assumption that net immigration continues to grow at current rates. The CBO expects most (75 percent) of the population growth to come from immigration over the next few decades.
In CBO’s projections, the population increases from 335 million people in 2022 to 369 million people in 2052. However, it grows at one-third the pace (0.3 percent), on average, from 2022 to 2052 that it did from 1980 to 2021 (0.9 percent). Over the course of the next decade, immigration accounts for about three-quarters of the overall increase in the size of the population, and the net effects of fertility and mortality account for the remaining quarter. After 2032, population growth is increasingly driven by net immigration, which accounts for all population growth in 2043 and beyond.
CBO.gov
The CBO provided useful information, we are digesting the data and will do some research to understand how we can capitalize on these trends. We’ll release our findings at some point in the future but in the meantime stay tuned and stay solvent…