Everyday Economics: The U.S. economy is undergoing a structural shift
The article examines how aging demographics, restricted immigration, tariffs, higher energy costs and weak hiring are reshaping the U.S. economy. It notes that data-center and power construction are increasing as AI investment grows, potentially adding near-term demand for energy, materials and skilled labor.
The U.S. economy is experiencing simultaneous shifts in labor supply, trade, energy markets and business investment, according to economist Orphe Divounguy of The Center Square. Aging and slower immigration are limiting labor-force growth, while tariffs and higher energy costs are raising production expenses. Inflation remains elevated even as job growth and worker purchasing power weaken.
Construction data show a divergence between declining residential and manufacturing activity and rising office construction, which includes data centers, as well as power infrastructure. The article says the AI investment boom is supporting growth but may increase short-term demand for energy, materials, specialized workers and capital, potentially keeping inflation and borrowing costs high even as productivity improves.