America "is facing what's projected to become the largest labor shortage in its history," according to experts interviewed by the Washington Post: Economists warn that the worsening labor problem, due in part to a skills shortage and population shifts, will be vast and reach beyond tech. It "could hobble the American economy for years to come," predicts the Georgetown University Center on Education and the Workforce. Lightcast, a labor market data company, calls it "the largest labor shortage the country has ever seen." JPMorgan Chase warns of a national security risk from "a pervasive talent deficit that constrains the nation's capacity to build, compete, and protect its interests." There will be shortages in the tens or even hundreds of thousands of nurses, physicians, teachers, engineers, pharmacists, mental health counselors, construction worker and airplane mechanics — jobs AI generally can't do... Among the trends that have been leading to this moment: a mismatch between the careers college graduates are pursuing and the jobs employers are struggling to fill. Far fewer students are majoring in health care fields than are needed to meet demand, for instance. "We have pumped so many young people into business and finance" when what's really in demand are graduates in other fields, [said Ron Hetrick, Lightcast's principal economist]. "It's like a factory producing these workers like widgets, even though society is saying, 'We really don't need them.' And the factory just keeps pumping them out." But the principal reason for the looming workforce shortages is much more basic. A protracted decline in birth rates is coinciding with a record wave of retirements, data shows. From 2024 to 2032, when the last baby boomers sign up for Social Security payments, more than 18 million college-educated workers will leave the labor force while fewer than 14 million enter it, according to the Georgetown center. Meanwhile, even as the number of people with associate and bachelor's degrees falls, the number of jobs requiring them will grow, the center forecasts. That will leave a gap of 4.6 million workers. Lightcast puts the deficit at an even higher 6 million... The effect of population shifts on the supply of talent, with or without degrees, has been compounded by a drop in the proportion of high school graduates choosing to go to college, a sharply reduced rate of immigration, and a growing number of Americans leaving the workforce altogether because of such issues as lack of child care, early retirement, incarceration and substance addiction, according to the Chamber of Commerce. Three interesting statistics from the article: U.S. college/university enrollment in 2023 was down by nearly 2 million students since its peak in 2010, according to the most recent data from the U.S. Education Department. America's low birth rate since 2010 "means the number of college-age Americans is forecast to decline by another 13 percent through 2041." South Dakota has just 41 workers for every 100 open jobs... while California and nine other states have more workers than jobs, the Chamber of Commerce found.

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America "is facing what's projected to become the largest labor shortage in its history," according to experts interviewed by the Washington Post: Economists warn that the worsening labor problem, due in part to a skills shortage and population shifts, will be vast and reach beyond tech. It "could hobble the American economy for years to come," predicts the Georgetown University Center on Education and the Workforce. Lightcast, a labor market data company, calls it "the largest labor shortage the country has ever seen." JPMorgan Chase warns of a national security risk from "a pervasive talent deficit that constrains the nation's capacity to build, compete, and protect its interests." There will be shortages in the tens or even hundreds of thousands of nurses, physicians, teachers, engineers, pharmacists, mental health counselors, construction worker and airplane mechanics — jobs AI generally can't do... Among the trends that have been leading to this moment: a mismatch between the careers college graduates are pursuing and the jobs employers are struggling to fill. Far fewer students are majoring in health care fields than are needed to meet demand, for instance. "We have pumped so many young people into business and finance" when what's really in demand are graduates in other fields, [said Ron Hetrick, Lightcast's principal economist]. "It's like a factory producing these workers like widgets, even though society is saying, 'We really don't need them.' And the factory just keeps pumping them out." But the principal reason for the looming workforce shortages is much more basic. A protracted decline in birth rates is coinciding with a record wave of retirements, data shows. From 2024 to 2032, when the last baby boomers sign up for Social Security payments, more than 18 million college-educated workers will leave the labor force while fewer than 14 million enter it, according to the Georgetown center. Meanwhile, even as the number of people with associate and bachelor's degrees falls, the number of jobs requiring them will grow, the center forecasts. That will leave a gap of 4.6 million workers. Lightcast puts the deficit at an even higher 6 million... The effect of population shifts on the supply of talent, with or without degrees, has been compounded by a drop in the proportion of high school graduates choosing to go to college, a sharply reduced rate of immigration, and a growing number of Americans leaving the workforce altogether because of such issues as lack of child care, early retirement, incarceration and substance addiction, according to the Chamber of Commerce. Three interesting statistics from the article: U.S. college/university enrollment in 2023 was down by nearly 2 million students since its peak in 2010, according to the most recent data from the U.S. Education Department. America's low birth rate since 2010 "means the number of college-age Americans is forecast to decline by another 13 percent through 2041." South Dakota has just 41 workers for every 100 open jobs... while California and nine other states have more workers than jobs, the Chamber of Commerce found.

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California drew more than $335 billion in venture capital funding this year, reports the Los Angeles Times, citing data released Thursday by PitchBook on private market funding: Its next biggest competitor, New York, raised less than a tenth of California's total. Texas raised 1/40th of the amount... Although a campaign for a new tax on billionaires has convinced some ultra-rich residents to shift to other states and businesses often complain that high property and energy costs and an anti-business regulatory regime make it too tough to make money in the state, the inability of the top talent, companies and investors in AI to set up elsewhere shows California's enduring attraction. The state's economy grew 5% last year to a record $4.25 trillion, making it larger than every country other than the U.S., China and Germany. It is home to nearly 400 billion-dollar startups — more than any other state, according to CB Insights... Among metropolitan regions, Los Angeles ranked behind only Silicon Valley and New York, which attracted $98 billion and $11.5 billion in venture investment, respectively... Investors poured in nearly $8 billion across 207 deals in the Los Angeles, Long Beach, and Santa Ana metro areas, up 28% from a year earlier, according to PitchBook... Nearly 90% of invested dollars [in California] went to AI firms, up from last year, when around 65% of new funds were allocated to AI. "If you're a tech company and you're not an AI company, you have a very, very difficult opportunity ahead of you to raise capital," Stanford said.

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"Texas has dethroned California as the state with the most Fortune 500 companies," reports the Los Angeles Times: The Fortune 500 list ranks the largest U.S. companies by revenue. This year, 57 of the top companies are headquartered in Texas, compared with California's 56. It's a reversal from two years ago when the Golden State had the pole position... California's corporate haters say they try to avoid the state's high costs, income taxes and strict regulations, but the western state is still a top money maker. "California dominates on nearly every other measure: its Fortune 500 companies are the most profitable ($647 billion), most valuable ($20 trillion), and employ more people than any other state (2.8 million workers)," Fortune said in a news release. Indeed, despite the naysayers, Californian companies have been leading the world in developing artificial intelligence technology as well as the latest in space and defense tech. The state is home to nearly 400 "unicorns," or billion-dollar startups — more than any other state, according to CB Insights. It also gobbled up nearly two-thirds of U.S. venture capital last year, with San Francisco Bay Area startups such as OpenAI leading the way, according to the business information platform Crunchbase. Texas and California have been in a tug-of-war for the crown. In 2024, after a decade, California bagged the top spot with 57 companies on the list, while Texas and New York tied in second with 52 companies each... The fourth spot was tied between Illinois and Ohio, with 29 companies each. Amazon was the top company on the list, ending Walmart's 13-year reign at the top of the annual Fortune 500 companies list. Amazon's 2025 revenue was $716.9 billion, compared with Walmart's $713.2 billion. Seattle-headquartered Amazon joined Exxon Mobil, General Motors, and Walmart as the only four companies to have ever held the top position since Fortune began publishing the data in 1955.

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