Fewer Americans aged 18 to 29 worked full time for an employer in June 2013 (43.6%) than did so in June 2012 (47.0%), according to Gallup's Payroll to Population employment rate. The P2P rate for young adults is also down from 45.8% in June 2011 and 46.3% in June 2010.These results are not surprising. Here is a snip from my May 1, 2008 post on the Demographics Of Jobless Claims
Younger Americans Less Likely to Have Full-Time Work Now, Regardless of Education
Older Americans More Likely to Hold Full-Time Jobs Now Than a Year Ago
The lack of new hiring over the past several years given a recovering economy seems to have disproportionately reduced younger Americans' ability to obtain full-time jobs. On the other hand, Americans aged 30 to 49 this June were, at 61.4%, about as likely to have a full-time job as they were in June of each of the prior three years.
The percentage of Americans aged 50 to 64 who have a full-time job increased in June 2013, to 48.2%, from 46.6% a year ago and 45.7% in June 2010. Similarly, 8.4% of Americans 65 or older had a full-time job in June 2013, compared with 7.2% in June 2012 and 6.2% in June 2010.
The slow economy of recent years has limited new hiring. This has likely increased the percentage of older Americans with jobs, as companies may be placing a greater value on their experience and productivity and as older workers decide to continue to work when given the opportunity to do so. It also may suggest that far fewer workers are retiring voluntarily. In turn, this may imply that the current labor participation rate will increase, as those who involuntarily left the workforce return in greater numbers than expected once the U.S. economy begins to grow significantly.
Ironically, older part-time workers remaining in or reentering the labor force will be cheaper to hire in many cases than younger workers. The reason is Boomers 65 and older will be covered by Medicare (as long as it lasts) and will not require as many benefits as will younger workers, especially those with families. In effect, Boomers will be competing with their children and grandchildren for jobs that in many cases do not pay living wages.
Social Security Cliff in Sight
And so here we are. Boomers are competing with their children and grandkids for jobs. Demographics are awful. And the ramifications of an aging workforce with fewer workers than ever vs. retirees puts stress not only on public union pension plans, but also on Social Security.
For further discussion, please see Social Security Cliff in Sight; Retirees Will Outlive Trust Fund; Ramifications of Nonmarketable IOUs and Privatization
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
