Microsoft Corp’s President, Brad Smith, has issued a stark prediction that a current trend towards a decline in the labour force and demand for higher salaries will become permanent.
Speaking to Reuters, Smith cited data from the United Nations that reveals that around five million people had joined the US working age population every five years since 1950. However, between 2016 and 2020, growth slowed down to two million; and it continues to slow. "That helps explain part of why you can have low growth and a labour shortage at the height at the same time. There just aren't as many people entering the workforce," said Smith.
This has resulted in higher pay being offered as companies vie for talent.
Smith’s interview comes after Mark Zuckerberg, chief executive of Facebook parent Meta Platforms Inc, warned of "one of the worst downturns that we've seen in recent history," in an interview about the US economy. Meanwhile, Elon Musk has been sharing his belief that the: “USA birth rate has been below min sustainable levels for ~50 years”. Musk is now father to nine children.
In the interview, Smith told Reuters he concurred with Musk’s concern "maybe in the problem” but added: “I'm not recommending the same solution”.
