Coronavirus Is Pushing Americans into Early Retirement

There has been a significant drop in the number of employed personnel in 2020 due to the effects of COVID-19 inside the United States as well as the rest of the world. More than 26.4 million people have filed for the unemployment aid given by the government of the United States to help the citizens of the country during these tough times. Coronavirus is pushing Americans into early retirement as most of the recently unemployed people are now not actively seeking new jobs.

Unemployment in the United States

The unemployment rate of American citizens is increasing every day as around 27 million individuals have lost their jobs due to the economic recession of the country caused by the COVID-19 pandemic. The severe recession of the economy is also known to create waves of multiple discouraged workers and the reason behind why coronavirus is pushing Americans into early retirement as thousands of individuals who are recently unemployed are not seeking another job.

According to the new research findings, the number of people pushing for early retirement has increased significantly as compared to those who are actively seeking jobs amid the COVID-19 crisis. Coronavirus is pushing Americans into early retirement might not affect the official unemployment rate, but will have severe plummeting effects on the employment to population ration of the United States. The country is unlikely to get back to the previous ratio in the upcoming future due to even after coming out of the economic recession in the United States.

Coronavirus is pushing Americans into early retirement as it is likely to have a huge influence on the United States labor market. Over the period of the last 20 years in the history of the United States, the rate of people working above the age of 70 has increased from 10% to 15%, having notable results of the total outcomes.

It is being expected that by 2024, 25% of the total labor workforce of the United States would be above the age of 55, but as coronavirus is pushing Americans into early retirement, these statistics will change, and the expected ratio will consequentially decline.

Why people in the United States are retiring

Before the COVID-19 pandemic, most of the general population of the United States was not working in any active job due to retirement, body disability, and construction workers or does not require work. Only 1.6% of people out of 18,000 were actively seeking work but were not able to find any jobs.

Since the beginning of the COVID-19 pandemic in the United States, millions of people are out of the labor workforce across the country. 60% of people out of 10,000 were trying to get employed but does not have any occupation.

As coronavirus is pushing Americans into early retirement across the country, there are several reasons for this, but the most frequent is old age. Older adults are more prone and susceptible to be infected by the COVID-19 virus due to the declining auto-immune system of the body as the consequence of aging and are hesitant towards working in an open environment amid the pandemic.

There is no probability regarding whether this early retirement trend in the American population will hold up, but it is expected that the retirement of older people will be permanent, opening up more job opportunities for young individuals in many fields of occupation across the United States.

As coronavirus is pushing Americans into early retirement due to the increasing number of COVID-19 confirmed patients across the country reaching to 903,202 individuals, people might come out of this early retirement phase ones the country’s economy is back up and running. The death toll across the United States is also increasing, as 50,952 people have died since February 2020.

Read also US Unemployment Reaches 26.4 Million Amid COVID-19 Pandemic