Final answer:
The retirement of the baby boomer generation is likely to cause a labor shortage and knowledge gap, presenting both challenges and opportunities for businesses and affecting wages and employment positively. Younger generations may find accelerated career opportunities as a result.
Step-by-step explanation:
The aging and retiring workforce, particularly the baby boomer generation, presents both an opportunity and a threat for businesses. The retirement of this generation can lead to a labor shortage and a potential knowledge gap as experienced workers leave the workforce. This could increase demand for skilled labor, potentially driving up wages for remaining and incoming employees. On the other hand, businesses have the opportunity to innovate and adapt by investing in training and technology, and by attracting younger talent with new ideas.
As for the effects on one's own career based on generation, if you belong to a younger generation, this shift could result in career advancement opportunities as positions open up. Additionally, for those poised to enter leadership roles, there may be a greater need for your expertise and skills to fill the void left by retirees.
Graphically, this impact on wages and employment can be shown through a supply and demand curve where the supply of labor decreases (shifts to the left) as baby boomers retire, potentially increasing the equilibrium wage if the demand for labor remains consistent or grows.