US labor force shrinks as healthcare costs rise

More than half of US workers will be retiring in the next decade, and healthcare costs are projected to be the largest driver of the workforce decline, according to a report from the National Bureau of Economic Research (NBER).

In 2020, workers are expected to retire at a rate of 9.1%, compared to 9.6% in 2020, the NBER said.

The median age is projected to increase from 39.9 to 43.9.

The average pay for workers will decrease by 9.2% to $59,100, while for managers it will decrease to $49,000.

The report also noted that median annual household income is projected at $60,300.NBER also found that the average age of workers is projected increase by 0.7 years, to 39.5.

This is due to workers retiring before they reach their 50s and 60s.NBS also noted, that while median income is expected to increase by $2,000, for workers with no income at all, it is expected at $4,300 per year.

The average salary for a worker with no salary is expected increase by 4.6%, compared with 3.3% for a salary of $80,000 or more.

The report also notes that the median household income for non-supervisory workers is expected rise by 0,4% to be $60.9, while the median salary for supervisors is expected fall by 0% to an estimated $55,000 per year, the report said.NBP said the projected increase in the number of workers retiring and the shrinking of the labor force could be a factor in the US labor market, especially since healthcare costs will likely continue to increase over the next few years.

While the US has seen an increase in job opportunities and a reduction in the labor market in recent years, the number and age of people retiring is expected also to increase.

As healthcare costs continue to rise, the workforce is expected continue to shrink and the average worker is expected grow older and sicker.

Source: Next Big EconomyNext Big Economy

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