Retirement and the Labor Shortage

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It is generally accepted that, over the last two years, a significant number of Americans have left the workforce for a wide variety of reasons. As a result, workforce participation has seen a material decline. Among those who have left, it appears that a number chose early retirement, perhaps over health concerns or because a review of their financial situation led them to believe that retirement could be affordable.

Investors might wonder if any of these “early retirees” are likely to consider going back to work, which could go a long way toward alleviating the current shortage of workers.  While predicting how people will react to changing circumstances is always difficult, retirees may think about reassessing their situation as gains in controlling Covid-19 reduce health risks and/or inflation makes retirement less affordable than originally thought.

All comments and suggestions are welcome. Walter J. Kirchberger, CFA

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