Demographic shifts and new policies sparking 'golden age' for workers
• Labor markets are transforming due to demographic changes, expansionary fiscal and monetary policies, and advancing AI technology. This is creating a "golden age" for workers.
• Labor shortages, especially in manual labor, are driving up wages across advanced economies. Low wage workers are seeing the greatest benefit.
• Governments are spending big on stimulus programs and running economy hot to boost employment and wages. This worker-friendly policy approach will likely continue.
• AI is making workers more productive, especially less skilled workers, which could further increase wages. But AI may also displace some routine jobs.
• Interplay of these forces will differ across countries. Places with fast-aging populations will see chronic labor shortages and wage growth. Impact of AI harder to predict in younger countries like US.