Retirement Reckoning

Two reasons for the worker shortage that get little attention include retirements and business formation. From 2012 through 2019, annual retirements averaged about 2 million/year. In 2020, 3.2 million workers retired! In 2018 and 2019, business applications were 3.5 million/year. In 2020, 4.4 million, and through 5/21 2.5 million, a 6 million/year pace. Worse, the Labor Department’s monthly jobs report does a poor job counting staff at newly established firms.