Brief | Evolving Workforces
Workforce Participation Varies Among Generations During The Great Resignation
February 9, 2022
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The Great Resignation seems to vary greatly by age. Labor force participation is lowest, relative to history, among 55+ workers. Lofty residential property and stock market values may have persuaded many older workers to retire early.
Young adults (ages 20-24) working in the hospitality sector who left the labor force at the height of the pandemic returned quickly once the economy reopened. This group has had less time to amass savings than their older colleagues, which likely explains the speed with which they rejoined the workforce.
Questions remain about the bulk of workers between 25 and 54. Workforce participation among this group has been steadily increasing, but survey data suggest that lifestyle changes and childcare challenges are keeping many away from work. During the next several quarters, rising wages will likely convince many of these workers to take jobs. But an aging population will mean more retirements down the road, making labor shortages a persistent problem.
Young adults (ages 20-24) working in the hospitality sector who left the labor force at the height of the pandemic returned quickly once the economy reopened. This group has had less time to amass savings than their older colleagues, which likely explains the speed with which they rejoined the workforce.
Questions remain about the bulk of workers between 25 and 54. Workforce participation among this group has been steadily increasing, but survey data suggest that lifestyle changes and childcare challenges are keeping many away from work. During the next several quarters, rising wages will likely convince many of these workers to take jobs. But an aging population will mean more retirements down the road, making labor shortages a persistent problem.
FIGURE 1: Labor force participation rate by age cohort, Index Value, December 2019 = 100
Source: U.S. Bureau of Labor Statistics
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Dennis Schoenmaker, Ph.D.
Global Head of Forecasting and Strategic Insight, Head of Data Centre of Excellence
