Posted on 11/14/2021 7:56:38 AM PST by millenial4freedom
Reports of labor shortages may not end anytime soon because a hefty number of retirement age workers have left the labor force - and a whole lot of them may not be coming back.
A Friday note from Goldman Sachs researchers led by Jan Hatzius finds that 3.4 million of the people who left the labor force - meaning they're not working or aren't actively looking for work - are over 55. Roughly 1.5 million of them were early retirements, and 1 million were normal retirements. Those two groups of retirements "likely won't reverse," meaning that, out of the five million workers Goldman estimates are still missing from the labor force, about half may not ever return.
(Excerpt) Read more at yahoo.com ...
So, the engineer that has the expertise, and the plant worker that knows which part of a machine needs replacing every six months, and the elderly office manager that knows when every report needs to be filed, have retired and are now out of the work force. Most that remain are hires that check the correct boxes but who actually have no clue when it comes to performing the actual work required. Good luck!
The underground economy grows, people disgusted with govt don’t pay taxes. Trading grows. Illegal immigrants do a lot of things off the books.
The govt put in more laws and regulations, the people ignore it.
the system is complex. THE INVISIBLE HAND
NOTHING is Chomo Joe’s fault. Nothing.
Young white couples have decided with 'money for children Biden plan' that white wives can stay home and have kids too. The plan was to 'birth more minority democrats' but as usual with poorly thought out plans - this one will backfire... more white kids will be born. More grandcildren... We've been paying taxes for decades - it's time for grandkids to be born.
Young white couples have decided with 'money for children Biden plan' that white wives can stay home and have kids too. The plan was to 'birth more minority democrats' but as usual with poorly thought out plans - this one will backfire... More white kids will be born. More grandchildren... We've been paying taxes for decades - it's time for grand kids to be born.
The old white guys have been told by senior corporate execs that they are racist and sexist and are harming the planet.
It is hardly surprising that they told their bosses who hate them to go f&^% themselves.
Life is good when you get the people who hate you out of your life.
That was the first thing I thought of ... a lot of early retirees will be needing extra income in the not so distant future. Inflation will kill even the best of retirement plans.
Very much agree. I’ve spent my career making recommendations on how to actually make improvements in processes, and it has mostly fallen on deaf ears. I have a liberal arts undergrad degree and an engineering MS. I consider myself a creative problem solver. What I have seen is that creativity is rarely valued in engineering environments. “We’ve always done it this way”. Inefficiency and hidden costs build up over time and management then “sees” the problem but — given how delicate things suddenly seem to be — they become even more risk averse and refuse to approve any bold solutions. I’m exhausted trying to fight that fight.
Same here, I just hope inflation doesn’t send me back.
“And this is a bad thing? Because?”
Suppose each worker was paid $50,000. Probably, the employer of that worker paid an additional $25,000 to the state and federal government for the privilege of having that worker. Theoretically, that extra money is paying for infrastructure supplied by the various governments. But it also pays into government retirement funds at all levels. All of that money speeds around the economy when the worker buys lunch or gas or lives in an apartment someplace far from home and commutes. All of that money stops. Each dollar he had spent moved around the economy creating five to ten “extra” dollars.
Now, back off to orbit and look at, say a million workers representing $50,000 plus $25,000 or $75,000 to the economy. One million times $75,000 is 75 billion dollars.
Now for the biggie, let’s say each worker creates twice his cost in value. Then the total is 150 billion dollars. That times five to ten is the impact to the economy.
The working population is the biggest, perhaps only driver of national Gross Domestic Product. That’s why the Chinese one child policy that has led to the collapse of their birthrate plunges them into a catastrophe that can’t be recovered from. Same with Russia and most of the west. Without people working the country they live in falls into economic decline.
Further, all of those retired people were providing liquidity to the marketplace through their retirement plans. Most retired people back out of riskier high return investments and go into investments that don’t really add liquidity. That means interest rates will go up and the economy will begin to decline. How far, I can’t say.
On the bright side. Most of these people, especially those in their fifties, will start their own companies or become part of the underground cash economy. If it weren’t for the underground economy we’d be in very serious trouble.
Many of the newly retired have soured on the hassles of working, with their small businesses wrecked by COVID and the Biden economy, or becoming tired of corporate bureaucracies and their mendacity, incompetence, and a walking on eggshells internal environment due to politics and a culture in which grievances seem spring-loaded.
So, for several years now, millennials have been whining about how they can’t get jobs because those darn boomers refuse to retire. So now, where are all those millennials who pretended to be wanting to take those jobs?
That is why i am waiting another 5 years
You know, the elites send their kids to private school to learn reading, math, history and political science.
The middle class sends their kids to gov’t schools to learn what? ...nothing of value apparently.
I don’t know if the Catholic schools are any good.
Have you seen the current crop of Americans entering the workforce?
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Yep, it's scary to see many of these people. Society is becoming more and more dysfunctional.
Controlling expenses is the key to fighting inflation in your own household.
That means looking very hard at where all your money goes—and making a priority list of what can be downsized if needed.
If you never have to use the list—great—but at least you will be psychologically ready to do what you need to do.
Everyone can spend less money than they are spending now—if they need to...
Good post.
I would recommend reviewing home and auto insurance.
If you stay with one company a long time, it really trends up.
I just switched companies (same independent agent) and got a big savings.
We have many younger relatives and friends in their mid 50’s/early 60’s, who will be leaving or have left their full time jobs to do part time or often working out of their home.
There is a small herd of them, who will be pulling the full time plug now or at the end of the year.
Many more will be making that move in the next few years as their last kids finish college or trade schools.
I’m retiring early by next June or July. Sooner if they mandate the vaxx
we were just discussing this very issue a couple of days ago,namely how many we know who just retired and/or took early retirement and were counting their blessings that they were now “out of the craziness”, and the implications to the functioning of our economy and our country by losing such a gigantic chunk of knowledge, skills and wisdom from every sector of our workforce all at once ...
yet ANOTHER of the MANY results of the leftist fascist to destroy the wealth and vitality of our country ... obama could only DREAM of what the dementia joe puppet shadow string pullers have been able to “accomplish” in reducing our country to “nothing special”
You can now get a reverse mortgage if one of the couple is 55.
So if you like where you live, you can live there rent free after you get a reverse mortgage.
Is there a minimum age for a reverse mortgage?
Can you get a reverse mortgage at age 55?
Besides being at least age 55, there is no maximum reverse mortgage age limit for applying for a reverse mortgage. The only condition for age is that you should be at least 55 or older. Older borrowers can access a larger part of their home’s equity.
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