6 reasons why Americans aren’t returning to work

[ipatent]

6 reasons why Americans aren’t returning to work

Covid
Health risks associated with the ongoing Covid pandemic have clearly played a role in recent months, according to economists.

Early retirements
Early retirements have also reduced the pool of available workers.

Older adults are at higher risk of severe illness and death from Covid. They may have opted to start drawing Social Security and live off their nest egg instead of taking a risk at work, economists said.

Care responsibilities
Care responsibilities have made it tough for some workers — especially those who can't work from home — to come off the sidelines.

Savings
Households across the income scale have been able to amass higher savings relative to pre-pandemic levels.

 

[schizo]

Another hindsight analysis.

 

[ipatent]

People take early retirements for various reasons. Fact is, when you are 50+, changing to a new position can be very challenging. I had a law firm that came to rely on a few big clients, which disappeared for typical corporate realignment reasons when I was in my 50s. My early retirement was decided for me.

 

[KCalhoun]

Reason #7: why work with corporate assholes when you can stay home and TRADE instead?

 

[CET]

Some people realized how much of their life they spent commuting to and from work, and no longer want to do that.

 

[DaveV]

You actually listed 5 reasons, not 6. But good points.

I would also add that workers in some industries, especially restaurant and retail, have decided that they are not going back to their old crummy job and are searching for a different career with better pay and benefits.

 

[ipatent]

You actually listed 5 reasons, not 6. But good points.

I would also add that workers in some industries, especially restaurant and retail, have decided that they are not going back to their old crummy job and are searching for a different career with better pay and benefits.

How do we reconcile this with the stories that half of working Americans, even retirement age, have next to zero in savings? You would think a lot of them work in restaurant and retail, not making that much.

Sounds like Mom giving up the second job for a while.

 

[2rosy]

what type of jobs are these people not returning to? examples?

 

[ipatent]

what type of jobs are these people not returning to? examples?

I've read healthcare, restaurant, retail in particular.

 

[Sig]

The labor participation rate really isn't significantly lower than it has been historically, it was in the high 62% range for quite a while before Covid and now looks to be steadying out in the high 61% range. That's not that many people, roughly 2 million, that have taken themselves out of the workforce. All the stories would tend to make it sound like a lot more. Could it be that the zeitgeist explanation doesn't actually fit the data?