Friday, May 4, 2012

Nice graphic showing the Generational Divide in Jobs. This is an underlying "problem" in the labor markets that can't be solved by policy--only mortality....

Macabre, I know....This chart uses the "Employment-to-Population" ratio for select age groups to illustrate the change in work status for these age groups since the start of The Great Recession.  It is simply the number of workers employed in the age group divided by the total population of the US (multiplied by 100). 

Notice the baseline "0%".  The employment-to-population ratio for workers aged 55 and up has remained remarkably steady. The drop in the other two age groups has been rather dramatic. 


Source: Investor Daily
One explanation is older people are holding onto their jobs longer because a portion of their retirement savings was wiped out in 2007-08.  The longer they work passed traditional retirement age fewer jobs open up for the age group behind them.  Another explanation is the 55 and over demographic is growing and the mid-point for the other two age groups actually shows a decline in numbers (see link article HERE for more on this). 

There certainly are other explanations I have not covered.  Can you think of any?  Suggestions welcome.
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