Unemployment: Younger Workers Drop & Senior Level Staying On The Job

By Audrey Howard on April 18, 2010, 7:43 am

Due to the decline in the stock market, older employees are staying where they are in their jobs.

The Stock Market Continues To Affect The Job Market

According to a report released by Thomson Reuters/University of Michigan’s Surveys of Consumers, the recent trend in the job market is that people who are 65 and older are staying in their current jobs and delaying their retirement due to their losses in the stock market. Studies show that people who were nearing retirement age lost a large chunk of their household wealth due to the stock market falls and the real estate decline in the past decade.

This could prove to affect the ability for younger people to obtain jobs with the older worker staying in the job force; employment among younger workers fell dramatically between 2008 and 2009. According to the report, the employment rate declined for workers aged 18-19 by 8.8 percentage points for men and 9.6 percentage points for women and employment fell by 11.5 percentage points for men aged 20-24 and 4.3 percentage points for women aged 20-24.

Not only are the jobs remaining filled by their current employees, it is also proving to be an obstacle for younger workers because the older employees require less training because they have more experience.

Health Care Reform’s Effect On The Job Market

Due to the recently passed health care bill, parents are allowed to include their children on their insurance policies until they reach the age of 26. Some say that this may also factor into the younger job force slacking off because it reduces the need of younger adults to have to find their own insurance before they hit the age of 26.

 

The United States unemployment rate is still near its historic high; it sits at 9.7 percent.

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