The US Has Two Huge Economic Problems, And They Cancel Each Other Out Perfectly

Probably the two most-cited economic problems in the U.S. are: Long-term demographic headwinds, and U.S. unemployment.

But good news! Those problems cancel each other out.

Investor, engineer, and amateur economist Matt Busigin explained on Twitter.

In other words, the ongoing departure of folks from the workforce and into retirement is creating both new job opportunities, and a demand for new workers.

Today’s jobs report showed it perfectly.

First of all, we got a nice jump in Non-Farm Payrolls. At 236K, it is one of the best months since the recession.

changeinnonfarmpayrolls

Photo: FRED

And a big part of that jump was due to a gain in health care jobs, which is an industry that benefits massively from our ageing demographics.

Look how steady health care employment grows. It just keeps going up.

healthcareemployment

Photo: FRED

And yet, labour Force Participation Rate continues to decline, in large part due to demographics.

LFPR

Photo: FRED

So we have one issue, ageing demographics, that’s helping to take care of another issue, unemployment, by both creating openings in the workforce and creating a booming health care industry that creates tons of jobs every month.

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