Top central bankers sounded the alarm over labor shortages and aging populations at the annual Jackson Hole Economic Symposium, highlighting risks to global economic stability. Bank of Japan Governor Kazuo Ueda described labor scarcity as one of Japan's "most pressing economic issues," warning tight markets could drive sustained wage growth amid declining working-age demographics.
The warnings reflect broader challenges across developed economies, where shrinking labor pools threaten productivity and complicate inflation management. While Ueda noted Japan's situation remains contingent on avoiding a "major negative demand shock," analysts suggest similar pressures could ripple through Europe and North America as populations age.
With labor shortages projected to persist, policymakers face dual pressures: sustaining economic growth while preventing overheating. The symposium's focus underscores how demographic shifts are reshaping monetary policy frameworks worldwide.
