The American standard of living could decline by as much as 9 percent by 2030, according to a recent report released by Accenture managing director of public service strategy Peter Hutchinson.
A 9 percent decline means a return to the standard of living of 2000.
Cleveland.com reports:
The report says anticipated declines in the living standard are being fueled by three factors undermining the labor market: lower worker participation rates, inadequate productivity growth and a shrinking working age population.
Hutchinson said Baby Boomers reaching retirement age will have a huge impact on the relative size of the working age population, or those 15 to 64. The working age population was 66 percent in 2013, and Accenture estimates it will decline to 61 percent by 2030. […]
Labor force participation rates have been falling across all demographic groups in recent years. Hardest hit are the youngest workers, or those ages 16 to 24, a trend Hutchinson considers alarming. He cited an Accenture survey this year of recent college graduates, in which 46 percent of respondents considered themselves underemployed, and another 13 percent said they were unemployed.