Part 6/9:
Another compelling point Baker makes revolves around demographics and their effect on workforce dynamics. The aging population, specifically the Baby Boomer generation reaching retirement, culminates in a demographic pinch point. This labor shortage trends upwards in importance, particularly since the newer labor cohorts, such as Generation Z, are not large enough to fill the gap.
Addressing the interconnectedness of labor supply and productivity, she underscores the pressing need for advancements in productivity to tackle rising wage costs. Baker suggests that technological advances, especially the integration of AI into the workplace, could offer some respite, albeit underlining that widespread adoption is still forthcoming.