The Workforce of the Future: What Businesses Need to Know

The U.S. labor market is evolving rapidly, with trends that have been building for decades. While total employment has recovered to pre-pandemic levels, businesses continue to face persistent labor shortages, an aging workforce, and a growing demand for skilled talent.

Key Trends:

• Labor Force Dynamics: The labor force currently numbers 167.8 million and is projected to grow modestly over the next seven years. However, participation rates remain below historic levels, and experts predict an overall decline to 60.4% by 2030. Workforce gaps are driven by factors like caregiving responsibilities, skills mismatches, and ongoing education.

• Aging Population: Workers aged 55 and older are growing at three times the rate of younger workers. As older employees retire, businesses will face challenges filling vacancies with a less experienced workforce, increasing the need for training and retention strategies.

• Immigration and Talent: Slowing legal immigration is limiting the pipeline of critical talent, particularly in technology and innovation-driven industries. Businesses will need to advocate for policies that support skilled migration.

• Diversity and Gender: Women now comprise nearly half of the workforce, and they are increasingly earning degrees and moving into leadership roles. The workforce as a whole is becoming more diverse, but underrepresentation in STEM and tech remains a concern.

• Education and Skills: Educational attainment is rising, and future employment will require ongoing upskilling, particularly in digital literacy, problem-solving, and adaptability. Employers must invest in workforce development to meet evolving demands.

• Industry Shifts: Service-oriented sectors, healthcare, IT, and education are expected to see the most growth, while goods-producing sectors face slower growth due to automation and international competition. The aging population will drive demand for healthcare and social services.

• Values and Social Awareness: Younger generations prioritize employers aligned with their values, emphasizing social responsibility, environmental stewardship, and purpose-driven work. Companies that authentically embrace these priorities will attract and retain top talent.

Implications for Business: At this rate, our future workforce will be smaller, older, more diverse, and highly educated. Businesses must adapt by investing in upskilling, embracing diversity and inclusion, addressing workforce shortages, and aligning with the values of younger generations. Collaboration between employers, educators, and policymakers will be essential to ensure Wyoming, and the U.S., can thrive in this shifting labor landscape.