Most New Jobs Going to Older Adults, As Younger Groups Lose Ground
Most New Jobs Going to Older Adults, As Younger Groups Lose Ground
October 6, 20149:00 AM MST
According to the Bureau of Labor Statistics (BLS) September monthly employment report, most new jobs are going to adults 54 years of age and older, and those jobs are in the traditionally lower wage fields such as retail, food services, and hospitality. Meanwhile, younger adults are seeing job opportunities disappear.
The BLS figures show that job creation is lagging behind the growth of the US working age population. Since 2008, while the available labor pool has grown by 14 million people, the US civilian labor force has grown by only one million people. This chasm between those available to work and the number of jobs is growing rapidly.
The number of adults either not in the labor force or unemployed is102 million people, an eye- popping 41% of the adult population.
The question is obvious: Who's going to support that large segment of the adult population?
It is assumed that those not in the labor force can turn to government safety net programs such as Medicaid, welfare, Social Security, disability insurance, Obamacare, unemployment insurance and Medicare for support.
Ultimately the government depends on revenue streams from its tax base to fund these programs. And historically the bulk of such tax revenues have come from the 25-to-54-year-old age cohort. Unfortunately, this cohort is itself facing a difficult job market, and thus cannot be depended on to generate sufficient tax revenues in the future.
Since 2008, this core group has lost 2.04 million jobs adjusted for population. This 25-54 demographic lost 10,000 jobs last month, and over 100,000 in July.
So who did actually get hired in September to account for the 248,000 jobs created?
Most of the new jobs went to workers between the ages of 54 and 69, the only age cohort whose labor participation rate has been improving during the post-2008 "recovery." Many boomers cannot afford to retire, so when they are downsized out of their high-paying positions, they take any jobs they can to offset the loss of income. Most find it impossible to exist solely on Social Security benefits which are currently averaging $1294 per month, according to government figures.
This might explain why four out of the top five of September's largest job additions were in lower paying and minimum wage fields, including temp help, retail trade, food services, hospitality, and health care. Retirees, both of the voluntary and involuntary variety, often find themselves having to take jobs in these fields as minimum wage waiters, groundskeepers, store clerks, and temps. As people live longer than ever, they must find ways to support themselves beyond the normal retirement age.
As the BLS monthly jobs reports continue to remind us, a good job is hard to find. Is it any wonder 72% of Americans in a recent survey said that the US is still in a recession?
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