A Working Economy

The Economic Benefits of a Larger Workforce

Changes to federal tax laws, federal income support laws, immigration laws, or other policies that expand the labor force would fuel economic growth. The CBO projects the U.S. labor force growth rate to decline from an estimated annual 1.7% growth in 2022 down to a 0.4% annual rate by 2025. Based on a CBO analytical tool, if the labor force growth were to gradually increase reaching an annual growth rate of 1.1% in 2030-2032, that additional growth would add 8.8 million workers to the labor force by 2032. Those additional workers would increase the U.S. economy (GDP) by $4.4 trillion and reduce the federal deficit and debt by $445 billion over the 10-year period 2023-2032[17].

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