alt Hacker NewsWhat's Behind the Sharp Drop in Labor Force Participation?
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Im in the prime working age and if I didn’t have responsibilities (mortgage, health insurance, dependents etc.), I’d quit today and not participate for at least a couple of years. Corporate treatment of workers has deteriorated at an unprecedented rate since Covid and based on my anecdotal evidence we probably have a national level burnout and depression epidemic that no one is talking about or looking into. Most people I talk to in my age group are experiencing the same feelings.
> Still, this rate merits carefully watching in coming months; a continued decline may signal a deeper change in the behavior of workers in this critical age group.
I know I'm speaking from a rather (somewhat) privileged position. I myself don't consider working beyond 50 years of age. I have lived frugally/minimally and am confident that (unless WW3 happens or some sort of unexpected global catastrophe arrives) I can FIRE (retire frugally with my savings) before I hit 50.
I also know it's somewhat of a bubble, but Reddit has a lot of subreddits (like r/HENRYfinance/; r/Fire/; and r/coastFIRE/) dedicated for folks retiring early.
Observing that FIRE trend and the fact that AI psychosis (don't get me wrong, I believe AI is useful, but not to a level that humans will be entirely replaced) at work place will surely drive some folks away (or at least discourage them) from staying in the work force, I am not surprised that this trend is showing up in the data. Plus, a lot of millennials are child free (by choice), so they can afford to retire early as well.
In south Europe it has been the case for like 20 years. The answer is simple. Businesses don’t pay enough.
People prefer cutting expenses and expectations (nobody in their 30-40s buys a house for example). Businesses cannot find labor or customers. So it is a downward spiral.
Everyone loses.
> More than half of the decline came from a statistical correction to the population level in January and from the steady effects of an aging population, not from workers exiting the labor market. But part of the decline is due to June’s sharp drop in the participation rate among workers ages 25 to 54.
> While dramatic, the June drop brings the participation rate among these prime-age workers back to a level consistent with those of recent years.
nothing to note unless it continues to drop
Anecdotal evidence, but more than half of my friends that grew up:
1. middle upper class
2. college educated at a top 75 college
3. tall, decent looking
are just not working regular corporate 9 to 5s and get by with consulting, small businesses, living off parents, living off nothing, scammy startups
w2 9-5 is straight up not worth it, even in the 150-300k range
maybe it was that 90% of all hiring in 2020-2024 was foreigners thing?
I talk to a lot of people in the Metro NY area. One problem here is -- if you need to commute into Manhattan (job center) -- it demands a certain salary, below which commuting in is a net-loss. Rent is $2000/mo. If you have a family and cannot have multiple roommates, you might be looking at $4000/mo.
"if you cannot afford it, stop complainingb and live elsehwere" they say...sure...but a commuter train into Manhattan can run you $30-50/day. Add in parking at the commuter train station and you're down about $60 or more a day.
Now suppose you eke out some net saving -- you've unqualified yourself from medicaid health insurance now. Your net savings may not even pay for your medical deductible.
There are a lot of reasons to just not bother unless the salary can get beyond all these hurdles.