The president of world technology giant Microsoft Corp. warned of concerns low population growth could impact the global workforce in the future.
The issue was raised by President Brad Smith by stating that firms in the United States (US) will face a ‘new era’ where there is a shortage of manpower and pressure to pay higher wages.
Smith’s statement was supported by the presentation of a chart on the ‘biggest economic turmoil’, which showed population growth rates declining in the US, Europe, China and Japan.
Looking at the chart, the trend of the U.S. worker age population every 5 years since 1950 has changed.
Beginning between 2016 and 2020, the population growth rate slowed to 2 million while major overseas markets saw a significant decline in the labor force.
That string, Smith reached the conclusion that a decline in human numbers could lead to a shortage of manpower at the same time.
To make matters worse, Microsoft is now said to have had to raise wages while slowing down hiring due to global economic pressures flanked by recessionary concerns.
Generally, U.S. Department of Labor data for June reported there was an unexpected increase in wage and hiring rates.
However, labor force participation is seen declining for the 2nd time in 3 months to 62.2% apart from not showing any increase since the beginning of 2022.
Meanwhile, during the day, the world's richest millionaire Elon Musk once wrote a tweet about the low US birth rate.
Through the tweet, Musk, who has 9 children including newborn twins, said he was trying to restore the population.
Although it sounds funny, Smith agrees with Musk about such a low birth rate but does not recommend a similar solution.
Like to note that among other factors contributing to labor shortages are government stimulus during the pandemic, Covid-19 and childcare.
