Boomers Are Breaking the Deal

It his latest Thoughts from the Frontline newsletter, John Mauldin addresses two major trends in the US.

1. A college degree isn't enough
2. Boomers are breaking the deal when it comes to the job market

Although unemployment is lower for those with a college degree, the real gains are being made by those who have advanced degrees beyond a 2 or 4 year degree.  These are the people that have managed to stay employed for longer periods of time and have made modest gains in income levels.

While retirement concerns blanket many in the boomer generation they are staying on in their careers much longer making it more difficult for the younger generation to begin a job in their desired career field or discipline.

Full Mauldin article here

• “About 1.5 million, or 53.6 percent, of bachelor’s degree-holders under the age of 25 last year were jobless or underemployed, the highest share in at least 11 years. In 2000, the share was at a low of 41 percent, before the dot-com bust erased job gains for college graduates in the telecommunications and IT fields.
• “According to government projections released last month, only three of the 30 occupations with the largest projected number of job openings by 2020 will require a bachelor’s degree or higher to fill the position — teachers, college professors and accountants. Most job openings are in professions such as retail sales, fast food and truck driving, jobs which aren’t easily replaced by computers.”
• Since the end of the recession, the number of jobs has grown by less than 3 million, all of which have been gained by those in the 55 year and older category! And then some: Boomers have taken “market share” from those who are younger.
• Mish Shedlock pointed out in his gonzo blog a few weeks ago that:
• As of 2012-06 the civilian labor force was 155,163,000.
• As of 2012-06 there were 111,145,000 in the private workforce.
• As of 2012-06 there were 56,174,538 collecting some form of SS or disability benefit.
• The ratio of SS beneficiaries to private employees has thus passed the 50% mark (50.54%).
• Think about that a minute. There are now half as many people getting some kind of Social Security benefit as there are workers in private employment paying into Social Security. And the trend is clearly advancing. This cannot be sustained. And solving the Social Security problem is the “easy” part of the budget debate. Health care is far more difficult.