Research suggests a demographic shift will impact the economic growth of developed economies, including the US.

Over the last 50 years, the main American workforce consisted of the generation born between 1946 and 1964. However, they are now getting older and retiring, with the pandemic accelerating this transition as people reconsider their priorities and embrace retirement.

For instance, in 1984, those under 40 comprised over 60 percent of the workforce, but today, they account for only 45 percent, while workers over 60 have doubled in number.

One crucial trend contributing to this shift is that the Baby Boomers had fewer children than their parents, and subsequent generations (Gen Xers and millennials) are not enough to offset the growing number of retirees. This demographic change plays a significant role in shaping the future of the workforce.

The post-pandemic era has seen dramatic changes in attitudes toward work, resulting in a significant impact on the American workplace and people’s lives.

More Americans were working into their 60s and 70s due to longer life spans, financial incentives to delay retirement, and economic necessity. Although this trend briefly reversed during the pandemic, many early retirees have returned to work.

The younger generation is now more selective about work, and the Great Resignation wave followed by the hybrid workplace’s new normal has transformed perceptions of the job market. However, the recent layoffs wave has stabilized job retention rates.

Millennials, as the largest living generation in the USA, are now in their late 30s and early 40s, reaching a crucial stage in their lives. However, many opportunities for developing long-term relationships have been missed.

Looking ahead, Americans between 25 and 54 years old are actively seeking employment, countering the departure of older baby boomers from the workforce. The resurgence of mid-career workers is primarily driven by women, and immigrants play a significant role in the workforce due to their younger age.

Employers are becoming more open to accommodating candidates, particularly working parents, and the hybrid work model empowers women with children to be gainfully employed.

To fully utilize the nation’s talent pool, including those historically underrepresented, efforts should be made to increase labor force participation and provide upskilling support.

Businesses need to implement strategies to Retain, Retrain, and Rehire employees and the private sector must create conditions that facilitate success for all potential workers. Policymakers and business leaders should collaborate to implement public policies that foster labor market growth and attract and retain workers.