Recent employment reports (which are all the Fed seems to care about) show the continuation of an eight-year pattern – most of America’s new jobs are filled by workers aged 55 and up.
Like I said, that’s nothing new. Since December 2007, 55 and older workers have gained more than 7.5 million jobs, while those younger than 55 have lost 4.6 million jobs.
It all means that Baby Boomers aren’t leaving the workforce.
As a financial advisor, I regularly see retirement-age clients working longer and have for a while now. There are two primary reasons:
And don’t discount the fact that some people never plan on retiring.
Given this information, it shouldn’t be surprising when see reports of stagnant wages. A big reason for that is employers keep hiring older workers with little wage leverage.
Plus, many times older folks will work for less because they have other income sources like Social Security. Something else to consider is that many senior workers having Medicare, thus they aren’t a burden on employers’ benefit programs.
If nothing more, the data suggest that we need to adjust to the reality of people working for longer than traditional “retirement age.” But do these trends also suggest a “boom” of wage stagnancy over time? Hopefully not.