Death becomes us, and the markets react
“Half of all states and nearly three quarters of all counties experienced more deaths than births in their populations between 2020-2021.”
Demographics drive much of the change in our world, including contributing to shifting social and economic norms. Labor markets are not immune to this change, and there is growing demand for workers of all ages in virtually every sector of the economy, including the death care industry, which includes funeral homes, coffins, crematoria, cemeteries, and headstones, for example.
A growing number people are waking up to the reality that American society is aging at a precipitous pace and will become “super-aged” by 2030. This means that at least one out of five people will be over the age of 65, and the number of older people will outnumber the the young for the first time in history just a few years after. This change in the country’s demographic composition is already driving demand for new products and services that enhance the lives “super-agers,” like those that focus on independence, mobility, and well-being.
What may be lesser known is that demographics aren’t delivered evenly across this nation or the world, and there are some states and counties that already meet the super-aged designation. These areas have demographic profiles that mimic the oldest countries on the planet, like Japan, Germany or Italy. The vast majority of these places are rural and they are well-ahead of the demographic curve.
According to the U.S. Census Bureau, half of all states and nearly three quarters of all counties experienced more deaths than births in their populations between 2020-2021, which was driven, in part, by the pandemic. These areas have lower than average birthrates than the national average, and many of them do not have positive immigration; the U.S. experienced its lowest birth rate in 2020. This means that some of these areas are now in the throws of population decline, and this is causing a boom for the funeral industry.
The U.S. Bureau of Labor Statistics confirms that employment of funeral service workers is projected to grow 8 percent from 2021 to 2031, faster than the average for all occupations. About 7,900 openings for funeral service workers are projected each year, on average, over the decade.
“The average age of a funeral director is 50, and more than three-quarters of them are over the age of 40.”
This growth in employment opportunities is being driven not only by the demand for funeral services across the country, but also an aging workforce. The average age of a funeral director is 50, and more than three-quarters of them are over the age of 40.
Job-seekers have took notice. In 2021, nationwide new student enrollment in accredited mortuary science programs jumped 24% over 2020, according to the American Board of Funeral Service Education. Graduates enjoy a 90% placement rate and earn, on average, these professionals earn nearly $60,000 per year.
A growing number of us are already experiencing the benefits of the new longevity, as well as the social and economic opportunities of the Super Age. However, despite significant scientific advancement, no one has figured out how to outrun death, yet. Expect continued growth and interest in the death care industry in the coming years, as well as rapid innovation and investment.
The market loves a winner, even when its death.
