The improving U.S. jobs trend confirmed by Friday’s data favours the old over the young. A solid 227,000 jobs were added, with upward revisions for past months, even though the unemployment rate stayed at 8.3 per cent. However in the last five years, people aged 55 and over have gained 3.6 million jobs, while younger workers have lost 7.6 million. The incentives of shrunken savings and funny money are doubly harming the young.
The details of February’s report were strong. Professional and business services, health care, leisure and hospitality and manufacturing all saw tens of thousands of new jobs. Construction employment declined slightly, indicating that recent strong figures were not due simply to the northeastern United States’ mild winter.
Throughout the recent downturn and slow recovery, the 55-and-overs have fared better than their juniors in terms of getting jobs, even if they may not relish having to do so. In the past year alone, they accounted for 67 per cent of the 2.5 million net new job gains. Indeed, 600,000 new jobs went to people aged 65 or more, raising the number of people in that age group who are working by more than 10 per cent.
The trend has squeezed younger workers. The unemployment rate for those aged 55 or over in February was 5.9 per cent, against 7 per cent for the 25-54 age group – traditionally considered the prime working years – and disheartening double-digit rates for the under-25s.
It’s possible that in some cases the experience of older workers has helped them beat younger rivals for jobs. At least as likely, though, is that the poor investment returns of the last decade and Federal Reserve policy that has slashed interest rates on their savings have forced them to continue working or to start again.
The U.S. economy benefits from the continued productive employment of older people, though perhaps golf course managers would beg to differ. But younger workers, denied the construction jobs they are physically equipped for because of the housing malaise, may feel their struggle to navigate this difficult economy is worsened by unexpected competition from the wrinklies.