We noticed that the Great Recession appears to have harmed Baby Boomers the most, but the media frequently discusses the lack of opportunities for the Millennium generation. However, when reviewing the Labor Department’s latest statistics, it appears that Baby Boomers were harmed the most. These Americans, now in their 50s and 60s, are nearing retirement age, but they do not yet have access to Medicare and Social Security. On average this demographic has lost 10% of their earnings when compared to wages prior to 2008. In addition, their retirement savings and home values fell at just about the worst time: right before requiring them for retirement needs. Many support both aging parents and unemployed young-adult children. Often this group is referred to as the “Sandwich Generation”.
A recent study by economists at Wellesley College discovered that people who lost their jobs in the few years before they were eligible for Medicare and Social Security suffered so much that their life expectancy declined by a full three years! The study stated that the lack of access to affordable health care was the main culprit. Furthermore, although the unemployment rate among this group is very low, once unemployed, the ability to find a new job is much more difficult. According to the Labor Department’s job report released February 1, 2013, someone in their fifties or older spent on average 53 weeks unemployed, whereas teens spent a mere 19 weeks looking for employment.
The article described how older workers seeking new jobs, yet feel discriminated against because of their age. The hard evidence is difficult to find and older workers are more reluctant to take new positions at wages much lower than their previous ones. Altogether these items add up to Boomers working longer, which will be good for the overall economy as we face a labor shortage because the amount of people to replace Baby Boomers is far fewer. So, many positions for skilled individuals are going unfilled while overall unemployment is remains stubbornly high.
Source:
Rampell, Catherine. “Reports suggest recession hit baby boomers the hardest.” Boston Globe 3 February 2013. Print.
