Job hunters and those already employed may need super powers to ready themselves for retirement. A big part of planning is knowing what you are likely to earn from work. For so many without jobs and deep in debt, looking ahead is tough. People with jobs are affected too. Even fuzzy mathematicians have to acknowledge that taxpayers will be stretched further as the number of non-contributors goes up.
To say that this issue has touched a nerve is a gross understatement.
ERISA attorney Stephen Rosenberg and blogger extraordinaire at www.bostonerisalaw.com ruminates about labor force participation all the time and commented accordingly. "I have always thought that a reduction of force ("RIF") of people in their 50s, perhaps via early retirement programs (combined with subtle bias, structural and otherwise, against older workers), on the one end, and the demands for more education before starting careers/difficulty getting first jobs on the other end, were creating a much smaller and more demographically circumscribed labor pool. I am reminded all the time that the most important thing in the economy is job creation – real jobs, like when a new business makes it. It creates such a ripple effect for everyone else, that nothing equals it." ERS Group labor economist, Dr. Dubravka Tosic, asserts that "A critical lack of supply of qualified labor in certain occupations is really startling. Consider the shortage of truck drivers and truck mechanics as two examples. There is a nursing shortage as well although the imbalance may be somewhat corrected as qualified persons are allowed to work in the United States on special visas from countries such as the Philippines. Returning veterans with needed skills could be another way to help companies in need of qualified workers." She points to a recent article entitled "Seventy Four Percent of Construction Firms Report Having Trouble Finding Qualified Workers" (September 4, 2013) as one of many references.
Last week, the U.S. Department of Labor announced the addition of 169,000 jobs in August 2013 with a steady unemployment rate just above seven percent. Netted against its downward adjustments for June and July 2013 number, the true increase is pegged at 95,000 jobs. See "U.S. Adds 169,000 Jobs in August, But Economic Outlook Remains Gloomy" by Christopher Matthews, Time, September 6, 2013. Ask most people what they think about the future and expect to get a reply that reflects cautious optimism at best. Withdrawals from 401(k) plans have exacerbated an already difficult situation for the disillusioned, underemployed and out of work professionals.
This blog author will return to the issue of retirement planning as it is important to all of us, individually and collectively, except perhaps to the top one percent of wealth owners. According to "Top 1% take biggest income slice on record" by Matt Krantz (USA Today, September 10, 2013), individuals at the head of the class account for "19.3% of total household income in 2012, which is their biggest slice of total income in more than 100 years."