Last year, many Americans who took early retirement during the pandemic were considering returning to work, pinning their hopes on a potential savior in a labor market hit by severe labor shortages.
no longer.
According to one survey, only 14.2% of retirees said they plan to return to work, down from 18.2% in February 2022. investigation The decision intelligence and research company Morning Consult announced last month. Among those who quit their jobs within the past two years, 29.1% said they would return to work, down from 34.4%. Data is based on the most recent three-month average of responses.
Perhaps even more clearly, 60.5% of retirees say they do not intend to return to work under any circumstances, up from a low of 48.1% in May 2022, according to Morning Consult research. is shown.
According to Jesse Wheeler, many people are used to daily life post-career, and factors like high inflation, a hot job market, and plummeting 401(k) balances can push them back into the harsh environment. It has weakened, at least to some extent. , senior economist at Morning Consult.
As a result, pandemic-related labor shortages have eased significantly across the country, but they persist in industries like health care and education, so don’t count on retirees to solve them.
![Most retirees are satisfied and have no intention of returning to work.](https://www.usatoday.com/gcdn/-mm-/3b8b0abcb585d9841e5193c3d072eed1e5ce62bc/c=0-30-580-356/local/-/media/2017/06/15/USATODAY/usatsports/beach-money_large.jpg?width=580&height=326&fit=crop&format=pjpg&auto=webp)
“We wouldn’t put them near the top of the list” of demographic groups likely to return to the workforce, said Dante DeAntonio, an economist at Moody’s Analytics.
Rather, the return of prime-age workers (ages 25 to 54) to the labor force is increasing the proportion of Americans working or looking for work, helping to alleviate the labor shortage. DeAntonio says. Many stay-at-home moms are taking advantage of remote work options and increased availability of childcare services.
That has kept wage growth and inflation in check and helped persuade the Federal Reserve to halt its aggressive interest rate hikes.
Why have so many people left their jobs during the pandemic?
As the novel coronavirus disease (COVID-19) rages on in 2020, many people in their 50s and 60s face increased health risks, burnout, and 401(k) bulges due to the booming stock market. ) plan, I retired earlier than planned.
By 2022, the pandemic will have eased, the labor market will be booming, inflation will be picking up steam, and many early retirees say they plan to start again. At least some people stuck with it.
What percentage of retirees return to work?
Through much of last year, 3.2% of workers who retired in the previous year said they were currently working, a figure that fell to 2.1% during the health crisis and was down from pre-pandemic levels, according to a Census Bureau analysis. It is said to have exceeded the standard. These are the numbers from Nick Bunker, director of economic research at Indeed, a major job search site.
But since March, that number has returned to pre-pandemic levels of 2.9% to 3%.
Bunker said the increase in the number of retirees returning has made up for the drop in retirements during the height of the pandemic in 2020 and 2021.
“Unless the demand for workers surges, it’s unlikely that retirement numbers will rise again,” he says.
Meanwhile, the proportion of 55-64 year olds working or looking for work fell from 65.5% before the pandemic to 63.5% in early 2021. However, it reached a peak of 66.5% in October, an unseasonable month. Statistics from the Department of Labor are shown on an adjusted basis. DeAntonio said most of these workers likely simply delayed retirement due to high inflation, but some may have returned to work after retirement.
But Morning Consult research suggests that trend is slowing down.
How long does it take to get used to retirement?
Wheeler said many older employees who left the workforce early in the pandemic “grew into retirees.”
“The longer you are retired, the harder it is to come back,” he says. “The network (which leads to job interviews) is broken…skills are atrophied.”
Or are retirees having too much fun?
Anita Speck, a Nashville, Tennessee, resident who retired in June 2022, said she considered returning to work “for just a moment.”
However, a former project management leader said in an email: After working in the same industry for over 35 years, he needed a break. ”
Meanwhile, she added, “We’re fine financially,” noting that her husband is still working and his company provides health insurance.
Speck, 61, said she initially wondered what she should do with her free time.
“Once I created my daily list, I was able to check things off and it gave me a sense of accomplishment. My to-do list is still long.”
Among other things, she says she spends time with her elderly parents and her newborn granddaughter.
“And the basement still needs cleaning!” she says. “I can’t imagine going back.”
Other factors preventing retirees from returning to work during the pandemic:
Cooling job market
The job market was tough last year as employers struggled to retain employees and brought in older workers for side jobs. However, the number of job openings per unemployed person in October was 1.3, still above the equilibrium market but below last year’s peak of 2 job openings per unemployed person.
Additionally, the annual average wage growth rate slowed to a still robust 4.1% from 5.9% as of March 2022.
easing inflation
The annual inflation rate fell from a 40-year high of 9.1% in June 2022 to a still high 3.2% in October, according to the Consumer Price Index. Rapid increases in the cost of living in 2022 and 2023 allowed Social Security recipients to at least keep up with price increases.
stock market recovery
The S&P 500 stock index fell 25% in the first eight months of last year, devastating retirees’ 401(k) portfolios. However, the benchmark index has risen 27% since then, nearly replenishing its nest egg, but is still 4% below its early 2022 peak.
About 22% of retirees said they would consider returning to work due to a lack of retirement benefits, down from 32% last spring.
The gap between rich and poor is wideningThe top 1% of American earners now own more wealth than the entire middle class.
Obligation to return to office
After employees were allowed to work remotely for much of the pandemic, mandates to return to the office skyrocketed. According to an August study by ResumeBuilder, 51% of companies require some or all employees to come to work in person, but only 36% require employees to work five days a week.
Additionally, 39% of employers plan to force employees to return to the office at least part of the time by the end of 2024.