'Oldboy's Comeback'... US Elderly Returning to Work Amid High Inflation

Impact of Rising Prices and Falling House Prices
2.4 Million Early Retirees Last Month
20% Decrease Compared to COVID Peak

Older Americans who retired after COVID-19 are returning to the workforce. Struggling with ongoing inflation and falling home prices, they are once again seeking employment.

On the 21st (local time), Bloomberg cited a retirement study report released by Miguel Faria Castro, an economist at the Federal Reserve Bank of St. Louis, stating that the number of early retirees last month was 2.4 million. This is a 20% decrease compared to December 2022 (3 million), when the spread of COVID-19 peaked. The labor force participation rate in the U.S. also shows signs of recovery, rising from a low of 60.2% in August 2020 to 62.2% last month.

The report analyzed that the return of older adults to the workforce is increasing the labor force participation rate. This age group had exited the labor market as their assets grew due to the liquidity unleashed by COVID-19. During the pandemic, the average assets of Americans aged 65 to 75 increased by $62,000, influenced by rising home prices and government stimulus payments. During the same period, this age group accounted for 36% of all early retirees.

During the pandemic, the number of job openings exceeded job seekers in the U.S., leading to the phenomenon known as the "Great Resignation," where many voluntarily quit their jobs. In 2021, 47.4 million workers voluntarily left their jobs. Considering that the number was 41.2 million in 2019, before the COVID-19 outbreak, this means that 5.3 million more people retired within two years.

However, recently, as inflation and falling home prices have reduced assets, many have started knocking on the doors of the labor market again. Researcher Castro explained, "Early retirees during COVID-19 are a group sensitive to asset declines," and added, "As signs of economic slowdown emerge and they begin to suffer from asset reductions, they appear to be pushed back into the labor market."

Nevertheless, it is expected to take time for the trend of older adults returning to work to become firmly established. U.S. authorities reported in this month's employment report that the employment-to-population ratio for Americans aged 55 and older has rebounded but remains lower than before COVID-19.

Bloomberg explained, "A wage growth rate in the 4% range and a still-hot labor market are incentivizing older Americans, who may have felt uneasy due to falling home prices, to return to work," but also noted, "The majority of early retirees are still passively observing rather than returning to jobs."

This content was produced with the assistance of AI translation services.