Why Grandpa Hasn't Retired
I forgot to post an article I wrote in Bloomberg on the increase in labor force participation rates among the elderly, and the implications of that economic change. Here you go:
In 1990, 11.8 percent of those 65 and older worked. In 2010 the figure was 17.4 percent. By 2020, the Bureau of Labor Statistics expects it to be 22.6 percent. The numbers are even more surprising for Americans older than 75. Less than 5 percent of them worked in 1990. In 2010, it was 7.4 percent. By 2020, according to the BLS, 10 percent of them will still be toiling away.
Since 1990, the aging of the population would have increased the number of workers older than 55 by 9.6 million if their participation rate hadn't changed. The increase in the participation rate added another 8.7 million. The rise in participation is almost as powerful as the underlying demographic change.