Data shows that boomers are driving the labor shortage

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Data shows that boomers are driving the labor shortage

Dec 19, 2021

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One of the myths that spread around this year was that young people didn't want to work just because they were getting by fine with government aid. A handful of politicians and pundits created the narrative that people had too much money. But the numbers don't add up. Whether forced by the pandemic or made possible otherwise, early retirements have left a huge impact on the labor market. People have left their jobs for a myriad of reasons. But among the workers who have left the workforce and are least likely to return, the vast majority are older Americans who accelerated their retirement.

Last month, 3.6 million more Americans who had left their jobs said that they didn't want a job compared with November 2019. A whopping 90% of them were over 55. There are a few reasons for this. Nela Richardson, ADP Chief Economist says that soaring home prices and the strong stock market have given higher-income people especially Boomers more options. In addition to this, the pandemic has also created a situation where the risks of going to work are higher for older people. Another reason for boomers adding on to this shortage is that employers aren't doing enough to lure workers out of retirement. Employers are creating jobs, but just not the ones that people want.

Even the White House has recognized the retirement issue and the labor market. Jared Bernstein, a member of Biden's Council of Economic Advisers said once that 'non-prime age' workers, those above 55 are excluded from the metrics, a much clearer picture of how the labor recovery is doing emerges because it strips out the retirement narrative.

Source: CNN

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