In our ‘youth scarcity’ era  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com. —Alex and Axel Strengthening the US workforce In the news • Steelworker shortage. Despite US tariffs that aim to expand domestic manufacturing in America, US companies are struggling to find enough workers for steel mills and other businesses tied to metals processing, Reuters reports. In one area known as the “Land of Steel,” almost 25% of the available jobs are in (or closely related to) the steel industry. But employers are hard pressed to find enough workers. Many workers commute long distances, with some making journeys as long as five or six hours to get to their employers. [Reuters] • Low birth rate. As young people delay marriage and parenthood, the fertility rate in the US remains near a historic low. As CBS News states, the trend could make it more difficult to stimulate economic growth. With a fertility rate of about 1.6 kids for each woman, the US remains short of the level needed to keep its population size stable. For countries with low birth rates, the challenge lies in balancing a larger number of older people needing support with fewer young people in the labor force while also creating businesses that support future growth. [CBS News] The share of working-age Americans (15 to 64 years old) peaked in 2007 and has been declining since, a trend that is expected to hamper economic growth. On McKinsey.com • Decreasing labor productivity. Many advanced economies, including the US, face the long-term trend of tightening labor markets. In fact, GDP in 2023 could have been 0.5 to 1.5% higher across these economies if employers had been able to fill their excess job vacancies, McKinsey Global Institute Director Olivia White and her coauthors note. The US, for its part, is underperforming on potential labor productivity. As a result, workforce shortages remain challenging and are likely to intensify—as are demographic shifts, such as declining fertility rates and higher life expectancies. • A shrinking workforce. As the US grapples with its largest labor shortages in two decades, various sectors are feeling the effects. Healthcare services, as well as accommodation and food services, confront higher-than-average job vacancy rates—whereas in construction, job vacancies have decreased even though some skills remain scarce. Find out how automation and AI adoption, along with reskilling, could accelerate productivity among US workers—and explore our America at 250 series for more ideas on how the US can chart a new course as it approaches a milestone birthday. Revitalize the US workforce —Edited by Belinda Yu, editor, Atlanta Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android. Copyright © 2025 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007