Monday, July 6, 2015

Why Baby Boomers Aren't Causing Lower Labor Participation Rates

Once again, the nation's unemployment rate fell on a shrinking labor participation rate and, once again, people on the left are explaining it away on the basis that 10,000 Baby Boomers are retiring every day; starting 4 years ago in 2011.  Therefore, we are led to believe that there are more people retiring than entering the workforce. Well, not according to this population pyramid derived from Census Bureau data:

Simply, there are roughly 17.5 million theoretical retirees (age 65-69) against almost 23.5 million theoretical job seekers (age 20-24). The net of which should result in an annual increase of 1.2 million workers per year. Yet, month after month, the size of the workforce barely increases or even falls.  In fact, it fell by 432,000 workers last month.


Labor force participation rate falls to 38-year low:

US Age Structure 2014:

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