The Most Surprising Thing About Today's Jobs Report: Workers aged 55 and older gained more jobs

Zero Hedge ^ | 11/06/2015 | Tyler Durden

[SeekAndFind]

After several months of weak and deteriorating payrolls prints, perhaps the biggest tell today's job number would surprise massively to the upside came yesterday from Goldman, which as we noted earlier, just yesterday hiked its forecast from 175K to 190K. And while as Brown Brothers said after the reported that it is "difficult to find the cloud in the silver lining" one clear cloud emerges when looking just a little deeper below the surface.

That cloud emerges when looking at the age breakdown of the October job gains as released by the BLS' Household Survey. What it shows is that while total jobs soared, that was certainly not the case in the most important for wage growth purposes age group, those aged 25-54.

As the chart below shows, in October the age group that accounted for virtually all total job gains was workers aged 55 and over. They added some 378K jobs in the past month, representing virtually the entire increase in payrolls. And more troubling: workers aged 25-54 actually declined by 35,000, with males in this age group tumbling by 119,000!

 

Little wonder then why there is no wage growth as employers continue hiring mostly those toward the twilight of their careers: the workers who have little leverage to demand wage hikes now and in the future, something employers are well aware of.

The next chart shows the break down the cumulative job gains since December 2007 and while workers aged 55 and older have gained over 7.5 million jobs in the past 8 years, workers aged 55 and under, have lost a cumulative total of 4.6 million jobs.

 

The same chart as above showing the full breakdown by age group - once again the 25-54 age group sticks out.

 

But young workers' loss is old workers' gain, as the following chart of total jobs held by those aged 55 and over shows. As of October, there was a record 33.8 million workers in the oldest age group tracked by the BLS - the same workers who, as noted above, also have the poorest wage negotiating leverage.

 

Finally, the most disappointing data point in today's report is that while overall labor growth was solid, the participation rate for workers 25-54, was 80.7%, far below is peak of just under 85%, and below the 80.8% at the end of 2014.

 

Time for a rate hike?

[SeekAndFind]

BOTTOM LINE

Workers aged 55 and older have gained over 7.5 million jobs in the past 8 years, workers aged 55 and under, have lost a cumulative total of 4.6 million jobs.

[Sacajaweau]

Tell me the wages.

Most older people I see working are in retail or McDonalds or the like. And it's supplementary income.

[refreshed]

So, the fact that many are coming out of retirement out of necessity might be a factor? That to me seems like a bad thing.

[catnipman]

“the workers who have little leverage to demand wage hikes now and in the future” = unmitigated illegal immigration

[Herodes]

I recently retired from a very “major” corporation. The company is THE leader in its field.

For the last 4-5 years, finding qualified candidates for premier sales positions has been like pulling teeth. Plenty of resumes...but few people can speak intelligently, write a coherent sentence...and embrace the fact that they will have to prove themselves via results before ascending to the “corner” office.

The pool of educated, driven candidates is essentially bare.

On the other hand, I’m certain Common Core will take care of all the above issues.

[catnipman]

“Most older people I see working are in retail or McDonalds or the like”

Yep. I’m seeing that exact same thing too.

[Purdue77]

Welcome to WalMart.

[skeeter]

With the property taxes in this valley I’ll need a job until the day I die. Or leave the area.

[LS]

Not surprising. Shuttle drivers for auto repair/auto dealerships, stockers that don't have to lift stuff that's too heavy, I've even seen a LOT of older stewardesses with the airlines.

Many of these people are retired, just need a little supplementary income, have time on their hands.

[ExTexasRedhead]

Another reason could be the work ethics and education of older workers as opposed to the byproducts of the Government Schools, ya think? From LBJ on, America’s children have been fed Liberal propaganda and brainwashed to be average in every way.

[SeekAndFind]

RE: I’ll need a job until the day I die. Or leave the area.

Leave the area. There’s no reason to pay outrageous property taxes to feed the beast.

[skeeter]

Probably will have to when the time comes. But man do I resent it.

Older homeowners do not have kids in school, do not use roads to commute, etc. and have paid property taxes throughout their lives, yet there is no property tax relief for them once they hit 65.

The powers that be obviously want them gone so they can get younger taxpayers in those homes. There’s an issue no one has picked up yet.

[Dana1960]

This doesn’t surprise me a bit. My workplace has gotten much older in the last couple of years.

Our workplace employs a bonus system that rewards (on top of usual wage) a premium for being ON TIME. They utilize a precise, digital fingerprint system to measure it. If you are even one second late, you lose the entire week’s premium., which can amount to $ 100 - 200 that week. Grownups know it’s worth it to leave 10 mins early for work; youngsters take a bit longer to catch on.

Younger workers are better with technology, but lack the life experience that is required when one deals with the public. So, it may depend on the position.

Young people who are more mature than their age, are the best treasure a company can find.

[griswold3]

But, but, but.. the ‘progressives’ keep telling me that the reason the labor force is decreasing is because of all the retirees.
Hmmmm....

[Iron Munro]

it is "difficult to find the cloud in the silver lining"

Wsit a minute!

Here comes one now.....

[csivils]

“Welcome to WalMart”

Exactly, word for word, what I thought when I read the title.

[Signalman]

[Mike Darancette]

“As the chart below shows, in October the age group that accounted for virtually all total job gains was workers aged 55 and over.”

Seniors will take low end jobs for the right money. Another unintended consequence of higher entry level wages.

[flaglady47]

Yes, retired and older workers are running out of money on their fixed incomes, because the Obama economy sucks bigtime. So, if they are able to work, not disabled or unhealthy, they are heading back into the workforce out of desperation. This is a bad sign, not a good one, for the economy.