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Demographic Trends in Organizational Strategies

USA is one of the most powerful economies in the world in terms of economic and financial growth. Over the past three decades, the rate of employment in the United States of America has been increasing. In the 1990s, the work force growth rate was 1.1 % lower than the current trends (Hornstein & Kudlyak, 2019). There are various phenomena in the demographic patterns that have affected the economy over the past few years. The shift in demographic structures is one of the factors that have impacted the nation’s employment sector. In essence, the US economy labor force has been adversely and positively implicated by the population structures’ current trends.

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The present changes in demographic patterns have affected the businesses. The US labor is likely to reduce, which will promote diversity and high skilled input. A small work force is easy to manage and will save the firms in terms of expenses. The research by Hornstein & Kudlyak (2019) has affirmed that an economy with a lower work force is likely to perform better than that with a higher proportion of workers. The US organizations will save revenue and increase their level of competition in the global economy. Therefore, the US’s economy will benefit from the current changes in demographic trends in the economy.

Despite the positive aspect of the demographic trends, the US’s economy is likely to be negatively affected in terms of organizational strategies. More specifically, as the economy grows, it needs more workers. Thus, most organizations will be vulnerable in terms of competition, as there will be no diversity of the worker’s skills and participation rates (Hornstein & Kudlyak, 2019). Therefore, the economy will adversely impact the mode of management in many organizations. For an organization to function normally towards same or better productivity, there has to be a compensation of the manpower. Particularly, investing in machines and other necessary assets should be ensured for the continuity of quantity productivity.

Every business fights for better strategies for management in the workers’ sector, without which many firms will fail in their strategic planning. Changes in demographic patterns affect the firms both positively and negatively. Thus, many organizations are likely to be affected by the current changes in the labor sector. Therefore, by a decrease in the rates, the firms will both gain and lose though the impact of the present trends in USA labor force.


Hornstein, A., & Kudlyak, M. (2019). Aggregate labor force participation and unemployment and demographic trends. Federal Reserve Bank of Richmond Working Papers, 19(08), 1-36. Web.

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