Axios reports on a new study from Moody's Investors Service suggesting that "more and more Americans are getting too old to work."
Here's the deal:
"The percentage of Americans age 55 and over has doubled over the last 20 years, as this 2020 paper notes, and that population (the baby boomers) is expected to grow.
"And while certainly many older Americans are working longer than ever before, they still do retire at some point.
"This was a demographic trend in place long before COVID-19 but was accelerated by the pandemic, which pushed many older workers into retirement.
"Moody's estimates that 70% of the decline in labor force participation since the end of 2019 was due to aging workers — about 1.4 million additional Americans retired."
It is all part of a bigger problem, Axios writes: "Declining fertility rates, and increasing life expectancy, is expected to lead to a drop in working-age populations across all G20 countries."
- KC's View:
Part of the problem with these retirements is that companies are losing an enormous amount of institutional knowledge. I've long felt that companies ought to find ways to keep some of these folks engaged after retirement, maybe by creating a new tier of employees who can supply advice and guidance to younger folks.