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Guest opinion: Decline in fertility rates in the U.S. and its consequences

By Vijay K. Mathur - | Nov 12, 2026

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Vijay Mathur

Bloomberg School of Public Health at Johns Hopkins University reported on January 6, 2026 that the U.S. birth rate was at a record low in 2024. Between the ages of 15 and 44 the birth rate of average American women was less than the replacement rate of two children. However, since the birth rate exceeded the death rate population growth still continued. The fertility rate is calculated at a specific moment of time each year and is the average number of births per woman of childbearing age (Centers of Disease Control).

The U.S. is not alone in this trend. It is a worldwide phenomenon. Asian and Pacific Islanders record the lowest fertility rates.

There are various causes of decline in the fertility rates. Some could be labeled personal, some are economically motivated and some, to a lesser degree, could be social. Larger family size reduces resources per child.

For example, parental time and economic resources devoted per child decrease and therefore could affect the intellectual growth of children. Decrease in intellectual growth would affect educational levels and hence higher income employment prospects of children.

Low income and employment prospects could result in adverse generational change in economic well-being. Such prospects would not only result in families opting for smaller family size, but would also persuade institutions and society at large to provide incentives for having a smaller family size. However most countries, especially those governed by democratic institutions, would not be inclined to impose mandatory limits on family size, though they may implement incentives for smaller family size.

Certain societies may put limits on social resources spent on children per family, thus constraining educational and future economic growth of children’s lifestyle. Social limits would be imposed if a large vocal majority is reluctant to bear the burden of higher taxes to finance social services to parents with large family size.

Historically feared Malthusian effect (named after British economist Robert Malthus (1776-1834) may occur. Malthus argued that population growth would outstrip food supply, because food supply increases in arithmetic proportion as opposed to population growth that increases in geometric proportion. This proposition has not been supported by facts because technology has revolutionized food production.

A reduction in population growth and efforts to reduce immigration may have long-term consequences such as reduction in labor force, an essential element in increasing economic growth, prosperity and income in a country.

Business growth requires a plentiful supply of labor force growth to meet increasing demand for products as a country prospers. Such demand not only arises within the country but also outside the country, when other countries’ income rises stimulated by demand for their products within the country and also their export demand. Such interaction between countries is inevitable if there are no controls in the operation of private markets.

In developed countries such as the U.S. and countries in Western Europe population decline is worrisome. The relatively stringent European policies of accepting more immigrants from Eastern Europe and underdeveloped nations to offset their population decline could result in the decline of their long-term growth rates. Their annual growth rates are averaging 0.2 percent annually. EU’s growth, according to the data sources, relies heavily on international migration.

The U.S. is not far behind W. Europe. It is hovering around 1.5 percent to 2 percent range. Hence, increasing the need for sufficient labor force would have to be met by increasing levels of immigration. Some needs are already met in the U.S. West by illegal migration from Mexico and Central America, even though the unionized labor force is facing competition in labor markets from immigrant labor around the country. U.S. teen birth rate is highest in the developing world. Hence, in the future there is hope for meeting increasing demand for labor force as the country prospers.

Policy makers must think about the future growth of the country rather being distracted by current resentment of unionized labor. Decisions based upon short-term concerns must be balanced by long-term considerations to foster long-term growth of the country. Otherwise the country will not maintain the status of super economic power and hence political and economic clout in the world markets.

Vijay Mathur is professor emeritus of economics, at Cleveland State University, Cleveland, Ohio. At present he resides in Ogden.

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