The US population, which has been growing at a record low rate this year, is projected to increase by less than one percent in the 12 months ending July 1. The country added just 393,000 individuals overall, or about one Cleveland's-worth. It's the first time since 1937 that the United States' population grew by less than a million.
This is an extreme example of a long-standing trend. For years, US population growth has been slowing as a result of:
- a declining birth rate as would-be parents delay or put off having children
- lower immigration levels to the United States
- higher mortality rates owing to an aging population.
The Covid pandemic, of course, was the key reason for last year's "unprecedented" events. The three headwinds described above have only been magnified by the pandemic.
The takeaway: The US population's stagnant growth will result in fewer individuals able to fill employment roles and pay taxes, possibly causing government spending on social programs like Social Security to deteriorate. Nations such as Japan, where the population has been declining since 2007, have already had to confront these concerns.
Along with the economic impacts of the pandemic and soaring inflation, it's just one more economic concern for the U.S.