Dividends and Who are America’s missing workers?

When COVID happened, all over the world governments sought to ensure few people died by shutting down workplaces to ensure people did not gather as much. It was a blow to many economies and with some vaccines available, people were able to gather again. Given entertainment and hospitality industries need people to gather to operate it was a very good thing to reopen again. People had some choice and soon job openings were seen, companies need bodies to carry out their business. Where were the people?

In an article by Lydia Depillis of the New York Times News Service, some of the missing have been found. After World War II, the servicemen caught back from the war and started having babies, this lead to the great baby boom from 1948 to 1965. After 1965, families became smaller from an average of 5 plus to today’s 1.5. The statistic meant a wave of people moved into school systems which had to be expanded, then they moved in work and now the wave is in the retirement range. There are many people who can retire, although the magic age is 65 when the government gives you full pension for being alive.

According to JPMorgan, some of the gap is owing to COVID’s death toll of more than 1 million people including 200,000 of retirement age. In addition, legal immigration is down by 3.2 million people. People looking for work is 62.4% compared with 63.4% in February of 2020.

In terms of the baby boom group, people who had been staying in the work place longer because we are living longer before the pandemic are disproportionate dropping out and have not returned. When asset prices including stock market values and housing prices increased, those that were fortunate to own assets did some calculations and retirement was easier.

Linking to dividend paying stocks, we all buy stocks to increase your net worth and everyone has a different point in which they could or would retire. Some wait till the government checks to ensure a steady cash flow, some wait till their assets are a level they could sell and be ok. There is no number otherwise, those that are multi millionaires or billionaires would not work. What is your expenses? type of lifestyle you wish? life choices? health? and the list can and does continue. With dividend paying stocks, the number is closer every year.

There are more questions than answers, till the next time – to raising questions.

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