American workers are getting older. That could spell problems for the U.S. economy.
“We have been driven by prime age workers for the past 100-ish years, being amazingly productive and getting the United States economy to where it is in the world,” said Kai Ryssdal, host of Marketplace from American Public Media.
In the next 50 years, he said, the U.S. full-time workforce is going to be much smaller than other countries. The status quo is an older workforce, but is there anything to learn from a younger workforce? To find out, Marketplace’s Age of Work series visited Utah County, one of the youngest places in the country. The working population is 10 years younger than the national average.
A lot of the county’s economic success comes from its unique culture. A large majority of the population is part of The Church of Jesus Christ of Latter-day Saints, and there’s a big emphasis on family. Despite that, Ryssdal said the county has lessons for the rest of the country, like its young business and entrepreneurial spirit.
This interview has been edited for length and clarity.
Ciara Hulet: How much of Utah County’s economy can be replicated elsewhere?
Kai Ryssdal: Immigration right now is a very fraught topic in the national dialogue, but immigration is a labor market story, right? We don't have enough workers in this country to do what we want to do, and whether they like it or not, those who are opposed to immigration are going to have to realize that our productive capacity depends on more immigration. They are overwhelmingly young. They are overwhelmingly likely to have children. They are overwhelmingly likely to do hard, hard work that Americans, naturalized and natural-born American citizens, don't always want to do. That is the thing that is going to be applicable from Utah County and those young families, that entrepreneurial spirit that I think can translate.
CH: What is the effect of entrepreneurship here?
KR: New business is the driver of pretty much any economy. The Small Business Administration will tell you that something like 66% of all jobs in this economy come from small businesses. And we talked to — while we were out there — the folks at iHub incubating those small businesses. We talked to a woman who runs a hair salon in her basement, who does six figures in eight months. We talked to a woman running, and there are lots of these, apparently, dog grooming in her house. Those are all small businesses for large families that drive productive capacity. And that is what I think is the most extraordinary thing about Utah County. It was kind of wild to see all these small businesses.
CH: How does Utah County nurture that entrepreneurial spirit that's already here?
KR: So y'all are super business-friendly, right? The State of Utah really wants businesses to come. That's explicit in what the government there is trying to do. But also, I think, just culturally, as you said, the LDS Church is mutually supportive in the community. They encourage people to do this, to be entrepreneurial and to start these businesses. It all sort of is a virtuous cycle, if you will. The young families need that income. They need the entrepreneurship, and so that's what drives a lot of the, in this case, women, to start these smaller at-home businesses.
CH: You found that Utah County’s success isn't just businesses starting here. How is it also drawing in workers and companies?
KR: So we went to Qualtrics, which I know is a controversial company in a lot of ways in that neck of the woods, but we had a great conversation with the chief people officer there, right? A really senior, high-powered woman executive who left California and all its charms to come to Utah to work for Qualtrics. She wanted what this company has, and I think you're seeing that in not only the small businesses that are starting there, but the established ones. I mean, Qualtrics is a multi-billion-dollar company, and it's getting people to come because of where it is and because of what the business dynamic of Utah County is.
CH: What are some of the challenges, though, that come as a result of a younger population?
KR: It’s crowded and getting more crowded. We went out to Eagle Mountain, where housing development is going gangbusters. You can't turn around without any housing development. But also home prices and it's crowded. The school out there, Cedar Valley High School, started six years ago with 1,800, 1,900 kids. Now it has 3,400. So for all the joys that lots of children bring, you have to put him in school. And that's a real challenge.
CH: What is the big takeaway from Utah County for the rest of the country?
KR: Demographics really are destiny, and as you have seen in Utah County in the last census period, 2010 to 2020, it was the fastest growing. Utah was the fastest-growing state in the nation, right? And so that leads to business development and economic growth, and that is a good thing. But the flip side of that coin are rising prices, lots of crowds, rising demand for services. You know? I mean, if we have women in basement hair salons making six figures, that says there's a lot of pent-up demand. Yes, unemployment is low and inflation is low there, but that can drive higher prices and challenges for the rest of the economy.
Read more from Marketplace: As the U.S. labor force ages, we went to one of the youngest counties in America
