Growth of U.S. labor force is slowing, reports show

http://www.washingtonpost.com/business/economy/growth-of-us-labor-force-is-slowing-reports-show/2012/04/10/gIQAVsSE9S_story.html

If demography is destiny, the U.S. economy may be in the midst of a decades-long slowdown.

The U.S. labor force is growing at about half the rate it was 20 years ago; according to recent projections by the Bureau of Labor Statistics, it will continue to expand at a slightly lower pace through 2020.

Slower growth in the number of workers tends to hold back gross domestic product and employment, economists say. And that makes it less likely that the economy will pick up steam at the rate it did in previous recessions.

These changes in the labor force “imply that future recessions will be deeper, and will have slower recoveries, than historically has been the case,” according to a paper issued last month by James H. Stock of Harvard University and Mark W. Watson of Princeton University.