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Will Baby Boomer Retirement Drive the Unemployment Rate Down?
Question by frazzled pop: Will Baby Boomer Retirement Drive the Unemployment Rate Down?
Now that the baby boomers are turning 65 and are supposed to start retiring, will they leave the workplace in 2011 and drive the unemployment rate down as the unemployed take their vacated jobs?
Best answer:
Answer by Anjaree
Yes, it is. But it will not cause the unemployment rate to go back to normal of under 5%. The economy has to grow more faster to absorb all of the unemployed persons to go back to work.But the budget deficits will suffer even more due to the retirement benefits the government has to pay for them.
What do you think? Answer below!
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They can’t retire. Their savings are not drawing near the income they’ve needed to draw since 2007. That puts them 3 1/4 years behind. Their homes have not appreciated so that they can sell them and move someplace cheaper. Capital gains tax reduction is set to expire, isn’t it? I am not especially up on that one, but if it is so, it will drive costs for boomers trying to retire. And there are lots of foreclosures in the marketplace, yet, that have not been resolved.
And, no the unemployment rate is going to be stuck for a few years while the boomers continue to try to retire and their continued sales from their 401K accounts depress the stock markets.
Not really.. The reason is that boomers will create shortages in skilled labor jobs. But the majority of unemployed are General Labor.
Not yet the age group that is now retiring is not bigger than the one now entering the work force, the birth rate peaked in 1950′s. seehttp://www.google.com/imgres?imgurl=http://www.uni.edu/gai/India/India_Lesson_Plans/India_Population_Pyramids_files/image002.gif&imgrefurl=http://www.uni.edu/gai/India/India_Lesson_Plans/India_Population_Pyramids.htm&h=614&w=882&sz=64&tbnid=Km9A0M3ArCQKWM:&tbnh=102&tbnw=146&prev=/images%3Fq%3Dpopulation%2Bpyramid&zoom=1&q=population+pyramid&hl=en&usg=__U9B4uWp7p4f0bJaX7y8wo3_AtiI=&sa=X&ei=m3c6TYexHoSq8AbPr4COCg&sqi=2&ved=0CDMQ9QEwAw
Given the state of our retirement plans, what makes you think we”ll retire?