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Extra Features and Video Online FloristsReview.com R E A D O N L I N E 37 of the very workers needed for retail operations. "Employers will be very focused on labor availability in 2023 as baby boomers continue to retire and the supply of immigrant labor has yet to fully recover from severe pandemic- related disruptions," says Yaros. "Despite a slowing economy, layoff s are low, indicating that businesses are holding onto labor in a reaction to the hiring diffi culties they encountered during the pandemic." When will the available workforce grow? Not anytime soon, say observers. " e labor market's going to be tight for years to come," says Bill Conerly, Ph.D., principal of Conerly Consulting in Lake Oswego, Ore. " e decade from 2020 to 2030 is expected to have the lowest growth of working-age population since the Civil War. One reason is the retirement of the baby boomers; another is the low rate of immigration over the last few years, prior to 2021." Palisin agrees that a labor shortage is going to be a long-term condition and says his members are making moves to lessen the eff ect. "Employers are trying to be creative in the way they keep and retain workers, not only by off ering higher salary rates but also by extending benefi ts and encouraging work fl exibility. ey are also investing more in automation for labor- intensive tasks." SUPPLY DISRUPTIONS Higher wages and scarce workers are not the only forces threatening retail profi ts. Another major factor is a rise in interest rates—the Federal Reserve's favorite tool for fi ghting infl ation. " e purpose of increasing interest rates is to drive down demand," says Palisin. "So, our members are expecting to see a decrease in new orders that will impact the overall economy. Also, many of our companies have lines of credit that rely on fl oating interest rates. Rising rates will take a hit to the bottom line as companies decide whether to utilize those lines of credit to support their cash fl ow and investments." U.S. Gross Domestic Product (GDP) Annual Percent Changes Economists expect growth in the monetary value of goods and services produced and bought in the U.S. to slow even further in 2023. 2014: 2.3 percent 2015: 2.7 percent 2016: 1.7 percent 2017: 2.2 percent 2018: 2.9 percent 2019: 2.3 percent 2020: -3.4 percent 2021: 5.9 percent 2022: 1.7 percent 2023: 0.7 percent Sources: The World Bank; projections by Moody's Analytics THE ECONOMY TAKES A BREATHER Sources: The World Bank; projections by Moody's Analytics

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