[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

America Erupts… ICE Raids Takeover The Streets

AC/DC- Riff Raff + Go Down [VH1 Uncut, July 5, 1996]

Why is Peter Schiff calling Bitcoin a ‘giant cult’ and how does this impact market sentiment?

Esso Your Butt Buddy Horseshit jacks off to that shit

"The Addled Activist Mind"

"Don’t Stop with Harvard"

"Does the Biden Cover-Up Have Two Layers?"

"Pete Rose, 'Shoeless' Joe Reinstated by MLB, Eligible for HOF"

"'Major Breakthrough': Here Are the Details on the China Trade Deal"

Freepers Still Love war

Parody ... Jump / Trump --- van Halen jump

"The Democrat Meltdown Continues"

"Yes, We Need Deportations Without Due Process"

"Trump's Tariff Play Smart, Strategic, Working"

"Leftists Make Desperate Attempt to Discredit Photo of Abrego Garcia's MS-13 Tattoos. Here Are Receipts"

"Trump Administration Freezes $2 Billion After Harvard Refuses to Meet Demands"on After Harvard Refuses to Meet Demands

"Doctors Committing Insurance Fraud to Conceal Trans Procedures, Texas Children’s Whistleblower Testifies"

"Left Using '8647' Symbol for Violence Against Trump, Musk"

KawasakiÂ’s new rideable robohorse is straight out of a sci-fi novel

"Trade should work for America, not rule it"

"The Stakes Couldn’t Be Higher in Wisconsin’s Supreme Court Race – What’s at Risk for the GOP"

"How Trump caught big-government fans in their own trap"

‘Are You Prepared for Violence?’

Greek Orthodox Archbishop gives President Trump a Cross, tells him "Make America Invincible"

"Trump signs executive order eliminating the Department of Education!!!"

"If AOC Is the Democratic Future, the Party Is Even Worse Off Than We Think"

"Ending EPA Overreach"

Closest Look Ever at How Pyramids Were Built

Moment the SpaceX crew Meets Stranded ISS Crew

The Exodus Pharaoh EXPLAINED!

Did the Israelites Really Cross the Red Sea? Stunning Evidence of the Location of Red Sea Crossing!

Are we experiencing a Triumph of Orthodoxy?

Judge Napolitano with Konstantin Malofeev (Moscow, Russia)

"Trump Administration Cancels Most USAID Programs, Folds Others into State Department"

Introducing Manus: The General AI Agent

"Chinese Spies in Our Military? Straight to Jail"

Any suggestion that the USA and NATO are "Helping" or have ever helped Ukraine needs to be shot down instantly

"Real problem with the Palestinians: Nobody wants them"

ACDC & The Rolling Stones - Rock Me Baby

Magnus Carlsen gives a London System lesson!

"The Democrats Are Suffering Through a Drought of Generational Talent"

7 Tactics Of The Enemy To Weaken Your Faith

Strange And Biblical Events Are Happening

Every year ... BusiesT casino gambling day -- in Las Vegas

Trump’s DOGE Plan Is Legally Untouchable—Elon Musk Holds the Scalpel

Palestinians: What do you think of the Trump plan for Gaza?

What Happens Inside Gaza’s Secret Tunnels? | Unpacked

Hamas Torture Bodycam Footage: "These Monsters Filmed it All" | IDF Warfighter Doron Keidar, Ep. 225

EXPOSED: The Dark Truth About the Hostages in Gaza

New Task Force Ready To Expose Dark Secrets


Status: Not Logged In; Sign In

Business
See other Business Articles

Title: Aging Baby Boomers Reduce Jobless Rate
Source: Bloomberg
URL Source: http://noir.bloomberg.com/apps/news ... 0601087&sid=awS8P7kcRGlc&pos=3
Published: Feb 7, 2011
Author: Alex Kowalski and Tom Keene
Post Date: 2011-02-07 18:18:07 by Brian S
Keywords: None
Views: 252

Feb. 7 (Bloomberg) -- Unemployment in the U.S. may fall faster than expected as baby boomers enter retirement, reducing the portion of people in the workforce, according to Drew Matus, senior U.S. economist at UBS Securities LLC.

Labor force participation has fallen to the lowest level since 1984, largely because older people are leaving the worker ranks, Matus said today in a radio interview on “Bloomberg Surveillance” with Tom Keene. If participation remains this low, employers need to create fewer jobs to reduce the unemployment rate, currently at 9 percent.

“There’s a cyclical downturn in the labor force participation rate, but there’s also a structural one related to the baby boomers that a lot of Wall Street economists are missing,” Matus said. “When you add the two up, you’re seeing this very dramatic drop in the participation rate. It might not bounce this time around.”

The participation rate shows the amount of people working or looking for work as a share of the population. With the oldest baby boomers turning 65 this year, Matus said the labor force participation rate won’t rebound to peak levels, so the jobless rate might fall faster than expected.

The participation rate declined 0.1 percentage point in January to 64.2 percent, the lowest since March 1984, the Labor Department reported last week. The number peaked at 67.3 percent in 2000. Employers added 36,000 workers, short of the 146,000 median gain projected in a Bloomberg News surveyed of economists, as winter storms deterred hiring.

Participation Downtrend

Structural changes caused by the aging demographic account for about half of the downtrend in the participation rate, said Matus, who is based in Stamford, Connecticut.

Following last week’s employment report, UBS economists, including Matus, lowered their year-end jobless rate forecasts for 2011 and 2012 by 0.2 percentage point to 8.8 percent and 8.6 percent, respectively.

“Continued healthy gains in household employment coupled with our expectation that the labor force participation rate is unlikely to move sharply higher suggests a lower unemployment rate path,” they wrote in a Feb. 4 research note.

Unemployment will fall to 9.3 percent by the end of this year and 8.5 percent in 2012, according to the median estimate of economists surveyed by Bloomberg News.

People born between 1946 and 1964 make up 25.8 percent of the population, or 79.2 million people, according to data from the U.S. Census Bureau. Nearing retirement, that generation’s “attachment to the workforce becomes less and less,” Matus said.

‘Giant Percentage’

“When you take a giant percentage of the population and you move them from one bucket where there’s a very high participation rate into a lower participation rate bucket, the population shifting is causing movements in the participation rate,” Matus said.

While some people believe workforce participation should rise because baby boomers must keep working into old age after the recession from 2007 to 2009 wiped out their retirement, Matus said boomers have saved enough.

“The net worth of this generation approaching the age of 65 is higher than the generation previous, their parents, and that tells me life expectancy has increased a little bit and there’s probably some desire to keep working more, but is there a need?” Matus said. “I can’t find evidence.”

Post Comment   Private Reply   Ignore Thread  


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com