US Must Add 4.6 Million Workers Annually to Avert Long-Term Labor Crisis

NEW YORK, June 17, 2025 /PRNewswire/ -- The US must add at least 4.6 million workers annually through 2033 to maintain a sufficient labor force. But with slowing workforce growth and an aging population, the country is facing intensifying labor shortages with long-term implications.

To close the seismic gap between job openings and available workers, a new report from the Committee for Economic Development (CED), the public policy center of The Conference Board, outlines a comprehensive strategy for expanding labor force participation, strategically increasing immigration, and aligning worker skills with evolving economic demands.

"Critical steps—from supporting labor force participation to reforming immigration—must be taken to increase US labor supply, prepare workers for the future economy, and attract global talent," said David K. Young, President of CED. "These challenges demand bold, forward-looking policy—and strong collaboration between the public and private sectors—to ensure the US workforce is ready for what's ahead."

Maximize Labor Force Participation

• Repealing the Social Security retirement earnings test would reduce confusion among workers nearing full retirement age and boost labor force participation.
• Expanding the Earned Income Tax Credit (EITC) would promote work and reduce hardship among low-income workers. Congress should increase the maximum EITC and income limit for individuals without children and remove age eligibility restrictions that penalize those over 65 or under 25.
• Flexible work arrangements support workforce participation for many groups, including older workers, parents with young children, caregivers, and those with disabilities.
• Increase support for working parents, including by increasing financial support for paid childcare through expanding funding for the Child Care and Development Fund, and potentially reforming the Child and Dependent Care Tax Credit, and making more forms of childcare eligible.
• Policymakers should take steps to increase the childcare workforce. Employers may also consider providing on-site childcare facilities.
• Congress should also address tax penalties for secondary earners, typically women, which disincentivize labor force participation.

Enact Comprehensive Immigration Reform

• Responsible immigration reform starts with securing US borders. This should include providing additional resources for US Customs and Border Protection, increasing the US immigration court system's capacity, enforcing stricter consequences for illegal entry, and requiring use of the E-Verify system.
• These measures should be accompanied by expanding pathways to legal status, including by expanding and modernizing employment visa programs (e.g., H-1B and H-2B). This should include setting visa limits based on market factors, granting work authorizations to certain visa holders' spouses, and allowing visa holders to self-sponsor for permanent residence provided certain conditions are met.
• Policymakers should also take steps to retain educated immigrants with in-demand skills, including by extending the duration of the Optional Practice Training program for student visa holders, and providing a near-automatic pathway to permanent residence for graduates employed in high-demand fields.
• Immigration reform should also include a pathway to legal status for unauthorized immigrants who meet certain conditions, including undergoing extensive background checks.

Remove Unnecessary Occupational Licensing Requirements

• Policymakers should prioritize removing outdated or overly burdensome regulations that limit opportunities to enter the workforce or start a business. This should include regular comprehensive reviews of licensing requirements to ensure they are necessary, proportionate, and not unduly restrictive.
• Policymakers should also consider streamlining processes for obtaining licenses, recognizing out-of-state credentials, and reducing or eliminating licensing requirements for low-risk professions.

Address Education and Skills Mismatches

• Stakeholders—including policymakers, educators, and business leaders—should focus on improving alignment between education and training programs and labor market needs. At all levels, schools can engage local employers in advisory boards, offering project-based learning tied to actual business challenges and expanding work-based learning programs like internships and apprenticeships. Stakeholders could also encourage students to consider frequently overlooked career paths, including the trades and "last-mile" roles.
• Congress should also consider boosting career and technical education (CTE) funding through both the Workforce Innovation and Opportunity Act (WIOA) and Perkins V programs that integrate education, job training, and employer input, especially in underserved regions.
• Increasing the maximum allowable Pell Grant would make postsecondary education more accessible and affordable for low-income students. In addition, expanding Pell Grant eligibility to include high-quality non-traditional programs at public two-year colleges would increase access to work-based education.

About The Conference Board
The Conference Board is the member-driven think tank that delivers Trusted Insights for What's Ahead.™ Founded in 1916, we are a non-partisan, not-for-profit entity holding 501(c)(3) tax-exempt status in the United States. ConferenceBoard.org

The Committee for Economic Development (CED) is the public policy center of The Conference Board. The nonprofit, nonpartisan, business-led organization delivers well-researched analysis and reasoned solutions in the nation's interest. CED Trustees are chief executive officers and key executives of leading US companies who bring their unique experience to address today's pressing policy issues. Collectively, they represent 30+ industries and over 4 million employees. ConferenceBoard.org/us/Committee-Economic-Development

SOURCE Committee for Economic Development of The Conference Board (CED)