For decades, a growing pool of college graduates poured into the U.S. labor market, boosting productivity and shaping America’s status as the world’s dominant economic power.
That driver of growth is diminishing. Enrollment has declined every year since peaking in 2011, according to the Census Bureau and the National Student Clearinghouse Research Center. The reasons include an aging population, rising tuition costs and a healthy rate of hiring that lessens the demand for learning.
Lamenting the end of the so-called productivity miracle are Federal Reserve officials and economists more broadly, who hailed its ability to allow faster growth without harmful inflation. Now, central bankers largely powerless to fix the schooling slump say something must be done to counter it to prevent a new era of weaker growth.
Continue reading: Fading College Dream Saps U.S. Economy of Productivity Miracle