The "Baby Boomers" are nearing retirement age. What affect might this have on the productive capacity of a country's labour force?

"nearing"? Honey, they've been retiring at high numbers for at least a year now! Your teacher needs to get an up-to-date text!!

http://www.google.com/search?rlz=1C1GGGE_enUS379US379&sourceid=chrome&ie=UTF-8&q=baby+boomers+retire