New Delhi, Jan. 30 -- The nation's population growth has slowed drastically over the past year in what is likely to be a longer-term shift that may complicate labor conditions and economic growth.

The U.S. population grew by only 1.4 million people, or 0.4%, for all of last year, according to data released by the Census Bureau on Tuesday. Not counting 2021, when the global Covid-19 pandemic slashed growth to 0.2%, that is the slowest rate of population growth the U.S. has ever experienced going back to 1900.

These worsening demographics weigh on a nation's capacity to grow and generally lead to more inflationary pressures. Both are important to consider when looking at the current state of the U.S. economy, says Gregory Daco, chief econ...