MARKETS & INVESTING
many economies don ’ t have enough young people coming of age to replace them in the workforce .
materials and the competition for them will complicate the energy transition and will potentially fuel inflation or greenflation .
• Technological innovation will be key : Technological innovation will be a key factor in the longer-term fight against climate change . The move to reducing carbon emissions will drive greater investment in green technology and needed infrastructure over the next decade .
3 . Demographics Changing demographics – specifically a predicted slowing of global population growth – will have a huge impact on inflation and economic growth as employers face pressure to compete for a tighter talent pool and maximise the efficiency of its existing workforce . Companies will also look to invest in productivityboosting technology to protect profit margins , likely hastening the more widespread adoption of robotics and artificial intelligence . Around the world , we are seeing ageing populations in many advanced economies . As baby boomers are coming to retirement , many economies don ’ t have enough young people coming of age to replace them in the workforce . This was exacerbated by the pandemic as many left the workforce due to early retirement or long-term sickness . This scarcity of workers could have significant impact on inflation and economic growth as wages rise .
Key takeaways
• Falling labour force means scarce talent in the workforce : With global population growth predicted to decline and labour force growth expected to slow , the number of available employees will decrease , putting pressure on employers to compete for talent .
• Increased inflationary pressures : With fewer workers , businesses may need to pay more in salaries to attract the right talent , aggravating inflation . Workers will demand bigger pay increases to alleviate the rising cost of living . And businesses won ’ t be able to offset these costs easily through offshoring and migration , as these have become less attractive or politically feasible options .
• Increase in investments in productivity-boosting technologies : Companies will have to think about and invest in technology that increases productivity to protect profit margins , leaning more on robotics and AI , where possible .
Schroder Global Multi-Asset Portfolios – funds for a changing world If you ’ re looking for a low-cost , multi-asset fund that adapts to this changing world , then consider the Schroder Global Multi- Asset Portfolios . With an OCF capped at 0.22 %, you can now access the best of Schroders , and pay no more than for a passive fund , through our range of actively managed , risk-mapped funds . We manage the asset allocation of each fund dynamically with reference to its objectives and risk profile , to reflect different market environments and changing asset class correlations . However , please remember that the value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested .
This scarcity of workers could have significant impact on inflation and economic growth as wages rise .
To find out more about the 3D Reset and the Schroder Global Multi-Asset Portfolios , visit our website at schroders . com / globalmultiasset . Alternatively , contact your usual Schroders ’ representative or call our Business Development Desk on 0207 658 3894 .
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