This is an important trend to watch as we think about entitlement programs, education infrastructure, etc.

America’s baby bust isn’t over. The nation’s birth rates last year reached record lows for women in their teens and 20s, a government report shows, leading to the fewest babies in 32 years.

The provisional report, released Wednesday and based on more than 99% of U.S. birth records, found 3.788 million births last year. It was the fourth year the number of births has fallen, the lowest since 1986 and a surprise to some experts given the improving economy.

The fertility rate of 1.7 births per U.S. woman also fell 2%, meaning the current generation isn’t making enough babies to replace itself. The fertility rate is a hypothetical estimate based on lifetime projections of age-specific birth rates.