At the annual 2025 Economic Forecast event, featuring Ellen Zentner ’95, Morgan Stanley’s Chief Economic Strategist, and Kate Watkins, Colorado State Demographer, one peculiar data point stood out: the Tooth Fairy is paying less. That surprising stat became a powerful baseline for a deeper discussion about shifting financial behaviour, demographic transitions, and the quiet but imminent redefinition of work itself.
The Tooth Fairy Index sparks many insights, as it does laughs, and historically mirrors broader economic optimism. As the stock market climbed, so did the average payout for a lost tooth. But in 2025, that pattern broke. While the S&P 500 continues its upward climb, the average Tooth Fairy payout is falling.
This phenomenon suggests that while markets remain somewhat optimistic, household-level caution is setting in. Families, especially those with young children, may be tightening their wallets despite overall economic growth. Or perhaps, the newer generations of children are not as privy to fantasy as before.
Colorado, like many parts of the U.S., is seeing significant demographic change. The state’s fastest-growing age group is now 75 and older, while immigration, historically a vital source of labour force replenishment, has slowed in recent years. This dual shift poses serious implications for the job market.
Ageing populations mean more people are exiting the workforce, while fewer immigrants arriving limits the replenishment of skilled and unskilled labour. The result? Labour shortages.
Coupling this with a bearish economic outlook on the American economy poses a few interesting insights to be aware of regarding the future of the job market.
One of the not-so-surprising dynamics in the evolving labour force is the generational pattern of AI adoption. According to Randstad’s 2025 Workmonitor Pulse survey, Gen Z and Millennials are currently the most eager users of workplace AI.
While Gen X and Boomers currently show more resistance, the reality of delayed retirement and rising living costs could shift the tide. AI may soon become a necessity for economic survival. In a strange inversion, we might see the oldest and youngest generations embracing AI-driven side hustles, gig platforms, or upskilling tools more readily than the middle generations already settled in their careers.
This inverted bell curve of AI adoption challenges our assumptions. It suggests that as older adults delay retirement, they’re also being nudged toward digital tools not out of enthusiasm, but out of necessity.
From falling Tooth Fairy payouts to AI bootcamps for your grandparents, the future of work is arriving in unexpected ways.
Whether you’re entering the workforce, reinventing your role, or rethinking retirement, the tools of the future are already here and rapidly evolving. The question poses whether or not you are ready to catch up today or have tomorrow leave you behind.
