Many economists expect a labour shortage in the developed world in the near to medium term due to the structure of the existing population. Two of the most obvious strategies to address the labour shortage are

1. increase the retirement age and draw from the pool of people not included in the labour force, and
2. increase immigration.

Both strategies have severe political drawbacks. 2023 France proposed to increase the retirement age from 62 to 64 led to protests and strikes through out the country. As a result the revision was revised to be ramped in over a longer period. “Pension reform” is actively being pursued in many European countries, Japan, Turkey and Costa Rica to mention a few.

Immigration policy is a critical issue in many countries now, including the United States and the European Union.

A third strategy is to incorporate new technologies into the production process. Some technologies are adopt labour-enhancing and complement the labour increasing productivity and quality but not replacing workers. Other technologies are labour replacing substituting labour with machines – the Luddite nightmare.

Undoubtably mixes of these three strategies will be implemented over the next generation. It will be a socio-political economic solution with different mixes of each strategy reflecting circumstances within regional economies but that is a discussion beyond the scope of this posting the implemented mix of strategies will have a profound impact on the balance of capital and labour in the future economy and social peace.

The following description of people not included in the existing labour force is offered as food-for-thought how can new technologies be labour enhancing as opposed to be labour replacing.

From ChatGPT:

In Canada, the groups of people not included in the labour force generally include:

1. Retirees: Individuals who have left the workforce due to retirement and are not actively seeking employment.
2. Full-time students: Those who are enrolled in educational programs on a full-time basis and are not actively seeking employment.
3. Homemakers: People who primarily manage household duties and are not actively seeking formal employment outside the home.
4. Discouraged workers: Individuals who have given up actively seeking employment due to discouragement over job prospects.
5. Persons with disabilities: Those who are unable to work due to physical or mental impairments.
6. Incarcerated individuals: People who are in prison or otherwise detained and are not available for employment.
7. Some long-term unemployed: Individuals who have been unemployed for an extended period and have ceased actively seeking employment.
8. Certain seasonal workers: Those who only work during certain seasons and are not actively seeking employment during the off-season.
9. Voluntary unemployed: Individuals who choose not to work due to personal preferences or circumstances, such as financial support from other sources.

These groups contribute to the population not actively participating in the labor force, which is an important consideration for understanding labor market dynamics and economic conditions in Canada.