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The Coming Labor Shortage Is Not Good News

The Coming Labor Shortage Is Not Good News
An economist worries about what we’re learning from the COVID-19 recovery.

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The COVID-19 recovery has led to a labor shortage, which has given workers more power and higher wages. However, economist Adam Ozimek warns that an aging workforce may not be good for the economy. He explains that a tight labor market is not the same as an aging workforce, and that the latter could have negative effects. He cautions against overlooking the problems that may stem from the country’s aging workforce. Ozimek discusses the impact of labor shortages on businesses, wage growth, and inflation. He also addresses the challenges of distinguishing between short-term and long-term labor shortages. The conversation highlights the need for a nuanced view of the economy and the potential negative effects of an aging workforce.