by Bud Meyers | December 16 2016
Baby Boomers are not to blame for the dramatic rise in the number of people “not in the labor force”. Retirees and those on disability are making for a smaller and smaller share (on a monthly basis) as to the number of people “dropping out” of the labor force.
A little over half (56.8%) of those in the U.S. who are not employed and “not in the labor force” receive some form of Social Security. To date (12/16/2016) 54 million working-age American adults are receiving Social Security benefits (retired, disabled, widowed, etc.) out of a total of 95 million working-age American adults who are not in the labor force.
Only 18% of the additional people who the Bureau of Labor Statistics added to the category of “not in the labor force” since last month had retired on Social Security (as the number of those receiving disability DECREASED); the other 82% of those who were added to the category of “not in the labor force” are just without jobs, but are not counted in the 7.4 million who are “unemployed”. From November 2016 to December 2016 (over the past month alone) the U.S. had an additional 366,275 people NOT IN THE LABOR FORCE that did NOT retire or go on disability.
92,199 MORE people retired
12,474 LESS people on disability
A difference of 79,725 who are now on Social Security since last month and are no longer in the labor force — from a total of 446,000 additional people who are now “not in the labor force” from Nov to Dec. Over time, more and more people “not in the labor force” have been exceeding the number going on Social Security because there has not been enough job creation to keep up with those graduating from school (not comparing to population growth or the employment-to-population ratio because of foreign-born workers: Foreign-Born New Hires Outpace Native-Born)