Early Retirement Surge Among U.S. Baby Boomers

What if a large factor in the current worker shortage is...unexpectedly high retirements? Oxford Economics and Capital Economics analysts have highlighted the huge jump in recent baby-boomer retirements, each one of which is another worker removed from the country’s workforce.

Michael Pearce of Capital Economics writes “…that is equivalent to 2 million workers, which would explain more than half of the current shortfall in the labor force." Bob Schwartz of Oxford Economics notes that “…older households hold more wealth than younger ones, and the improved balance sheets of senior workers may well have tipped them over into retirement.” (Chart from Capital Economics)