Demographics Plus the Employment Population Ratio
St. Louis Fed writer William Emmons notes the chart is a function of population growth and the Employment-Population ratio.
What’s Driving This Outcome
- The older population (60 and older) grew much faster than the younger population (16-59).
- The employment-to-population (E-P) ratio among those 60 and older increased significantly while the E-P ratio among the younger population declined, on balance.
- The older population is likely to continue growing faster than the younger group.
- The E-P ratio of the 60 and older group is likely to increase further as the health and educational attainment of older people continues to improve and the demand for older workers persists.
The above points from Older Workers Accounted for All Net Employment Growth in Past 20 Years
This reminds me of something I said just before and during the great recession. Unfortunately, I cannot find a link but it went like this.
"Parents will be competing with their kids and grandkids for jobs."
Well here we are.
When I grew up there was hardly anyone over the age of 50 working in fast food chains.
Now? What percentage of fast food, Sam's Club, or Walmart greeters are under the age of 50? What percentage are part-time?
What About Employer Health Care Coverage?
Note that Health Care Coverage for part-time employees is optional.
Those between the age of 60 and 65 cannot wait to reach the age of 65 so they can get on Medicare.
Thanks to Obamacare, younger workers pay more than their fair share as a subsidy to their parents and grandparents.
Push for $15 Minimum Wage
The push for $15 in minimum wage plus rapidly rising health care costs further incentivizes part-time work, overseas outsourcing, and robotics to eliminate the jobs altogether.
That's the rest of the story.