But this is a good thing! When you hear that we need X number of jobs per month to keep up with population growth, it might give the impression that population growth is a burden to the economy — that if we could only slow the growth of the labor force we could solve our unemployment problems. But in fact the opposite is true: Steady population growth is a good thing for the economy. New entrants to the workforce don’t just supply labor, they also demand it. All these new young people and immigrants who are now joining the labor force need things like clothes to wear, cars to commute to work, and homes to live in. And this demand creates jobs. Furthermore, a growing population allows us to support our ever-growing elderly population.

In other words, it’s not the size of the labor force that’s the problem, but the lack of jobs.

Autor: Gabriel Catalano - human being | (#IN).perfección®

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