Aging population a drag on US labor force growth

With ageing population, the US labor force growth is expected to slow down further in the 2014-2024 decade. The number of Americans retiring in the years to come will impact the economy growth rate.

The work-age population growth rate is slowing down. The US economy is expected to generate 9.8 million additional jobs during the 2014-2024 decade.

According to the biennial employment projections for 2014-2024 by the US Labor Department reveal that work-age population is growing at 0.5 percent annually. The work-age population will reach to 163.8 million 2024.

According to a report by Reuters, the work-age population growth rate was 0.6 percent during 2004-2014 and is expected to be 0.5 percent in 2014-2024. The work-age population growth rate already slowed down by 1.2 percent in the decade through 2004.

The Labor force participation is expected to ease to 60.9 percent in 2024 from 62.9 percent in 2014. This slowdown is expected slowdown the growth of gross domestic product (GDP).

"The GDP growth rate forecast is 2.2 percent annually over the decade. This should generate 9.8 million new jobs, a 6.5 percent increase between 2014 and 2024," said the US Labor Department.

The working age Americans, the labor force participation, in the employment or looking for job is 62.5 percent, which is at 38-year low. The drop in the labor force is actually contributing to the easing unemployment rate.

The unemployment rate was at a peak of 10 percent in October 2009 and now hovering at five percent registering 7-1/2 year low level. According to the estimates, the services sector will account for 94.6 percent of all jobs generated during 2014 and 2024.

New service industry will have 9.3 million jobs, healthcare and social assistance segments will have 3.8 million jobs during the period.

According to the Bureau of Labor Statistics, the nonfarm payroll employment rose 211,000 in November as against the monthly average addition of 237,000 during the past 12 months.

Employment in the construction sector rose 46,000 in November. The construction sector will have 790,400 jobs by 2024.

The US economy is expected to generate 9.8 million additional jobs during the 2014-2024 decade. The job addition will grow from 150.5 million in 2014 to 160.3 million in 2024. The majority of additional jobs will be in the low-wage segment.

Out of the 15 fastest-growing professions, 2.7 million new jobs will the in the salary of $32,000 or less. About 867,000 jobs will be $32,000 salary per annum.

According to a report by Breitbart, the annual growth of 1.6 percent during 1950 and 2000 may not be achievable for the next decade. The labor force participation is scraping the bottom at 62.5 percent close to a 38-year low. It will further drop from 62.9 percent in 2014 to 60.9 percent in 2024.

The US Labor Department said, "Even with these additional jobs, employment in the construction major sector is not projected to return to the 2006 peak."

The manufacturing employment is forecast to ease 0.7 percent every year during 2014-2024. It's expected the job loss in sectors such as farming, production, fishing and forestry occupations. The jobs loss in these segments is predicted to be 339,300 jobs during the period.