An article in Zero Hedge analyzes the relative employment by generation since the jobs “recovery” began in 2009 and finds that the cumulative jobs added since that time has “gone disproportionately to older workers at the expense of younger workers.” Since 2007, the data they report shows that workers aged 55-69 have gained over 8 million jobs, while workers 16-55 are still down over 3 million jobs total.
For explanation, they point to a Bloomberg article looking at the same phenomenon, which notes that “because of the huge baby boomer generation that is just now hitting retirement age, the U.S. has the largest number of older workers ever.” Because of poor retirement prospects many workers are working longer than ever prior to retirement, or no longer plan on retiring at all. This is reflected in the employment-to-population ratio for 65 and older workers as reported by the US Bureau of Labor Statistics, which has increased to 18.9% as of April 2016.
The Zero Hedge article notes that as older workers remain working without retiring, those positions do not open up for less experienced workers. This prolongs the time until younger generations can achieve those higher-paying jobs and work their way up the ladder, depressing their employment prospects. That the retirement picture of a 65 would-be retiree may directly reflect the employment prospects of a 22 year-old college graduate certainly illustrates the degree to which a weak economy impacts all demographics.
Read the whole article here.