Pandemic Accelerates Retirements, Threatening Economic Growth

Link: https://www.wsj.com/articles/pandemic-accelerates-retirements-threatening-economic-growth-11616940000

Excerpt:

The labor force participation rate—the proportion of the population working or seeking work—for Americans age 55 and older has fallen from 40.3% in February of 2020 to 38.3% this February—representing a loss of 1.45 million people from the labor force.

The participation rate initially fell much more for prime-age workers, those between ages 25 and 54, from 82.9% in February last year to 79.8% in April, but has since jumped 1.3 points, to 81.1% in February of this year. By contrast, participation for older workers has shown no rebound from last spring.

Lydia Boussour, lead U.S. economist at Oxford Economics, said the unique health risk to older people during the pandemic has likely deterred them from rejoining the workforce in greater numbers. Public-health officials have warned that the risk of severe illness from Covid-19 increases with age. Among those who contract the virus, the death rate for those age 50-64 is nearly nine times that of those age 30-39, according to the Centers for Disease Control and Prevention.

Author(s): Amara Omeokwe

Publication Date: 28 March 2021

Publication Site: Wall Street Journal