U.S. adult population growth slows to 0.4 percent annualized rate in first quarter

The U.S. labor force showed no expansion in the first quarter as the adult population grew at an annualized rate of 0.4 percent. Aging and lower immigration are cited as factors weighing on workforce size. Officials have described the labor market as being in a curious kind of balance, with low rates of both hiring and firing.

Short-term labor market conditions The Federal Reserve has concluded that interest rates are roughly where they should be for the time being. Officials noted that persistently low unemployment continues despite tepid demand for labor.

Longer-term growth outlook The size of the labor force is critical to the outlook for economic growth. Officials stated that the trend of labor force expansion matters more than short-term conditions for determining future growth rates.