A Rich Blog-The Sea Change in Demographics and What It Means for Your Investments

Per the Pew Research Center study back in April of this year, there were approximately 162 million workers in the US workforce. Of that amount, currently, 1/3 of the workforce consists of Millennials (born 1981-1999), at about 56 million. Gen Xers (born 1965-1981) are the next largest group, also about 1/3, at 53 million, and Boomers (born 1946-1965) are the rapidly declining element of the work force at 41 million or 25% of the workforce. Amazingly, 9 million workers age 72 or older continue to work (5%) and 3 million Post-Millennials (Generation Z, born 1999-2015) have already entered the workforce (2%), and this number grows daily.
Boomers seem to be retiring from the workforce by about 4 million per year while Millennials appear to be increasing by about 3 million per year. Gen Xers appear to be maintaining their population in the workforce. Post-Millennials (Generation Z) seem to be entering the workforce at a rate of 3 million per year. As a quick study, Generation Z is a bit smaller than Millennials (74 million to 79 million). Generation Z and Millennials will continue to grow due to immigration. So the ratios should stay the same. Notice that more than 70% of Millennials are now in the workforce. Boomers peak participation rate was just under 85% back in 1996 during the Dot.com bubble. If Millennials are like Boomers then we can expect the group to peak in about 3 years, and the economy to keep humming well into the 2020s.

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