One of the most insidious myths this year is that young people do not want to work because they are getting government help. The people had more money, narrated from a few politicians and pundits.
Here is the thing: Early retirement – whether forced or otherwise made possible by the epidemic – has a major impact on the labor market. Data show that retired boomers are a much larger force behind labor shortages than “lazy” millennials.
People have left work for the last two years for a number of reasons. But of those who have left and are less likely to return, the vast majority are older Americans who have expedited their retirement.
Last month, compared to November 2019, 3.6 million Americans who left the labor force said they did not want to work. 90% of them are over 55 years of age.
There are a few reasons for this.
- Nela Richardson, chief economist at ADP, says strong stock markets and rising housing prices have given higher incomes, especially boomers, more options.
- The nature of the infection means that older people are at higher risk of going to work.
- Employers are not doing enough to lure people away from retirement. They create jobs, not jobs that people want.
- Key Quote: “I want a 65-inch TV for $ 50, but that’s not to say there’s a TV shortage, it just means I’m not willing to pay anyone enough to sell me a TV,” says labor economist Aaron Sogerner. Professor at the Carlson School of Management, University of Minnesota.
Even the White House has acknowledged how the pension issue distorts our reading of the labor economy. Jared Bernstein, a member of President Joe Biden’s Council of Economic Advisers, once excluded “non-primary” workers – over the age of 55 – from the scales, revealing a clear picture of how labor recovery works. Retirement profile out.
There are signs that the labor shortage is declining.
Bringing retirees out may seem horrible, but it’s not always so – some retire not because they want to quit their job, but because working in an epidemic is too risky, or they can not find a job that benefits them. The risks were greater than that.
Another shine of optimism about hiring managers: FedEx, which said it would spend $ 470 million in its most recent quarter due to labor shortages, says the outlook for employees is improving.
FedEx said it was getting good response from its current hiring efforts, given other benefits such as its current pay package and the utility that offers flexible schedule options tailored to the employee. Last week alone, it received 111,000 applications, the highest in its history, from just 52,000 a week in May this year.