6 reasons why Americans aren’t returning to work

[ipatent]

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?

The Great Resignation does have a Madison Ave ring to it like a good propaganda missive, but why? These memes about people resigning look like an upper class phenomenon, the lower 50% live paycheck to paycheck and have no such luxury.

 

[Raheel Shaikh]

Freedom of time is the most valuable thing.

 

[Pekelo]

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

I counted 4, let's vote on it!!!

 

[ipatent]

I linked to the original article that supposedly had 6.

 

[Sig]

Let's all be reasonable.

 

[Handle123]

I believe most likely people work at jobs they dislike cause they pay more, I can't imagine doing anything I disliked for 30-40 years. I quit working for the government in 1999, I was 42, had done 17 years, my body wore out, but did not take disability. I look at disability differently than most people, if truly disabled means to me you barely can get out of bed and on oxygen.

If people did work at something they love, would it be considered work?

 

[NumberZ]

Another hindsight analysis.

There is nothing to analyze until it happens. What would "foresight" analysis look like? How would one guess how people are going to react to a global pandemic before a global pandemic?

 

[NumberZ]

How do we reconcile this with the stories that half of working Americans, even retirement age, have next to zero in savings?

You might be surprised how many Americans are "living" off of social security alone.

 

[Sig]

You might be surprised how many Americans are "living" off of social security alone.

I think most people kind of ignore houses when they think of savings. If you own your home in full, as many especially older retired folks do, that's a form of savings that brings their monthly costs down to the point that living off SS isn't that far fetched. Average SS check is just under $1,500/month. Two person household getting $3,000 per month with no housing costs isn't horrible in many parts of the country (Although it would suck in LA, SF, NYC, Hawaii, or Alaska), especially since that $3,000 per month is only getting taxed at around 5% federal plus whatever state you have at that level.

 

[ipatent]

I think most people kind of ignore houses when they think of savings. If you own your home in full, as many especially older retired folks do, that's a form of savings that brings their monthly costs down to the point that living off SS isn't that far fetched. Average SS check is just under $1,500/month. Two person household getting $3,000 per month with no housing costs isn't horrible in many parts of the country (Although it would suck in LA, SF, NYC, Hawaii, or Alaska), especially since that $3,000 per month is only getting taxed at around 5% federal plus whatever state you have at that level.

A lot of retirement age people with no savings have already dipped into their home equity. There's a major baby boomer retirement crisis on the way.