Something quite remarkable is happening in the labor market, the baby boomers are not retiring. In fact many that were retired reentered the workforce. With the medicare cuts, weakening dollar, and overall cost of living on the rise, it seems the boomers are responding the old fashioned way, by working. Is it unreasonable to assume the baby boomers are just doing what their parents did during hard times? Perhaps, but maybe it is mostly out of necessity. Either way, the following graph shows how dramatic this trend is.
The graph clearly shows in the past 13 years overall participation in the labor market has dropped markedly, but the participation by boomers has soared by about the same amount. Much to the detriment of younger workers. Older work experienced individuals have come into style by employers. Having fewer skilled high quality employees instead of more younger inexperienced is good for the books now.
We can thank the current administrations policies for this trend in many ways. Consider this, if grandpa and grandma are not retiring, many construction and service jobs that could be never materialize. That retirement home will never get built. That golf cart will never be purchased, and so on. Instead our government is making the younger generation totally dependent on entitlements.
Only unleashing America’s energy, leashing the EPA, and setting a pro growth agenda can turn this around. But at the moment, the best the government can come up with is band aids. Freedom zones, promise zones, enterprise zones, yea this has been tried before. It only works for crony corporations and politicians looking to buy some votes.
So in a nut shell, it sucks to be a youngster in this work force. If you’re not already sponging off the government maybe you can dip into your grandparents pockets. When you decide self sufficiency is more palatable, put some deep thought into the 2014 and 2016 elections this time Jr.