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.

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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

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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

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

LFPR

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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.