Employment of old people has not fallen?

[general35]

While employment rates have fallen sharply among the general population, they have not done so among the elderly. This result is difficult to reconcile with Keynesian characterizations of the labor market.

Recent studies have looked at the labor-market experiences of the elderly during the first half of the recession. The authors emphasize that, while the recession by itself might reduce elderly employment, the elderly have become increasingly willing to work. I agree.

These findings contradict the Keynesian narrative of the labor market, in which the marketplace fails to recognize the degree to which people would like to have a job. (The Keynesian narrative helps rationalize, among other things, the assertion that unemployment insurance did not reduce employment during the recession, because “what’s limiting employment now is lack of demand for the things workers produce. Their incentives to seek work are, for now, irrelevant.”)

Employment, even during a recession, is not solely the result of lucky few finding available positions. All else being the same, the market tends to create and allocate jobs for those people who are most interested in working.

That’s why, if government is to avoid making employment any less than it has to be, it’s so important to pay attention to the incentives created by taxes, subsidies and government regulations.The Link

 

[YoLaDu]

that is interesting.

a few things:

1. When the economy tanked and 401Ks took a hit, more people of expectant retirement age financially had to keep working.

2. More and more older males, with very little retirement saved, will work until they die. They can't afford to retire.

3. People are just living longer. It's hard for some people to retire knowing they have 20+ years to fill the time with. Especially if that time might be a spartan one on a fixed low income.

all of that certainly doesn't help the historical numbers as far as employment turnover from generation to generation. More people in the labor market. Essentially and coldly, not enough people are dying off or retiring to make room for others.

 

[Crockett]

A lot of old people are unwilling to invest in anything riskier than a CD or a treasury. You could make more gathering aluminum cans than you can earn investing a 250K nest egg that way.

 

[Horn6721]

crockett?
hmmm maybe this is a hot tip
How much can you make recycling cans?
with football season coming maybe I can rebuild my portfolio combing all the tailgates

How much does it pay?

 

[Oilfield]

I have to keep my older folks around to show the younger folks what work looks like.

 

[Crockett]

It wasn't my intention to suggest gathering aluminum cans is a good. Prices are 60 cents a pound. 32 cans make a pound, so 2 empty cases of beer or soft drinks would net you about $1. Investing 250K at .7 percent interest would net you $17,500 a year, about the same a full time job paying $8.50 per hour.

 

[hornpharmd]

This is no suprise. I have pointed this out over the last couple of years as we look at unemployment #s. Seems reasonable that as the elderly are not retiring and either staying employed or coming back to the workforce that they are displacing others who may be entering he job market or may be out of work. Thus there are already a low # of jobs available and they are taking many of them which is keeping the unemployment rate up.

But over the last year we have seen a # of seniors go ahead and retire as their 401k has recovered a bit. So I think the trend is going back down. The new trend as mentioned earlier in the thread will be those that are approaching retirement age and just don't have the balance sheet to retire. They will have to stay in the workforce longer or accept a lower quality of life on SS.

 

[Lake_Travis_Horn]

While the point several of you have made is valid, you're either missing or ignoring the OP's main point, which the media gives very little attention to - that unemployment is as high as it is because some or many people aren't that interested in finding work. Older people are at a competitive disadvantage in the job market, so if they're finding jobs then it certainly suggests that part of the reason for high unemployment in other demographics is the intensity with which they seek work.

An anecdote that supports this theory: A guy I know is a manager at HEB. A while back, he was near the registers and overhead a conversation. A woman was checking out and as the cashier rang her stuff up, the woman started bagging her own items up. Her friend said "You're pretty good at that; you could probably get a job here." The woman replied "I'd never do a job like this!" The cashier finished ringing her up and gave her the total, and the woman pulled out her Lone Star card (food stamp card) to pay for it. She was too proud to work at such a lowly job, but not too proud to take "charity".

 

[Crockett]

That may be an age thing. I'm 51. No honest job is so menial it dishonors the worker.

 

[hornpharmd]

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