Fewer and fewer older Americans are working
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The share of adults age 55 and up in the workforce is at its lowest level in two decades, as more baby boomers age out of their working years.
Why it matters: The growing population of seniors — the youngest boomers are 61 years old — is one of two huge demographic forces hitting the labor market right now, as evidenced in last week's jobs report.
- The other is the big decline in immigration.
The big picture: These big shifts explain a great deal about the slowing job market.
Between the lines: The change in the senior workforce is entirely driven by demographics, explained economist Jed Kolko in a post this week.
- Peak boomers are now aged 65-69, so the age 55+ cohort is increasingly weighted toward these retirees.
- When talking about trends with older workers, "don't overlook demographics!" he writes.
Zoom in: Older folks are also benefiting from a sharp increase in wealth. Thanks to rising home and equity values, many stopped working in the pandemic and subsequent years.
- That trend has only accelerated as the boomer generation gets older.
The intrigue: The Wall Street Journal also recently reported that some older workers are leaving the job market rather than deal with the sweeping disruption brought on by AI.
- Others simply join the ranks of the laid-off and can't find another job, given the challenges older workers face.
The bottom line: Still, AI departures are minor compared with the population dynamics in play.
