The U.S. birthrate is at its lowest point since 1979, and the fertility rate is the lowest since the government began tracking it in the 1930s.
Birthrates typically move up during good economic times, but that did not happen after the Great Recession of 2007, nor has it happened since. Millennials are simply not having babies at the same rate as their fore bearers. Wall Street Journal writer Janet Adamy, in her article, “Births in U.S. Drop to Levels Not Seen Since 1979,” writes:
In seeking to explain their lower fertility rates, researchers have pointed to the fact that they are marrying later in life, getting higher levels of education and are less financially secure than previous generations when they were the same age.
The good news is that the most significant drop in births was among women 15 to 19 years old. The smallest decline was among women in their forties.
For toy-makers and retailers, the trend will be away from low-cost toys and towards higher priced products because those who could least afford to buy better toys for their children are not having babies.