While the algos have long forgotten about today’s job report whose headline was good enough to unleash an epic buying spree which has pushed the S&P to the highest level since July 2015, a quick read between the lines reveals a continuation of some recent troubling trends, namely that all job gains in recent years have gone exclusively to the oldest segment of the population, those 55 and older.
First, as the chart below shows, when breaking down the job additions by age group as per the Household Survey, of the 180K jobs added in this particular survey, 259,000 were in the 55 and over age group, while only 28,000 were added in the critical 25-54 age group. Young workers, those under 24, lost a collective 107,000 in June. In other words, 90% of all job gains in the month went to workers 55 and over.
Another way of seeing this dramatic discrepancy in job gains by age groups, is shown in the chart below: since the start of the 2007 recession, nearly 10 years ago, over 8 million jobs have been gained by workers 55 and over. Everyone else, and especially those 25-54, have lost jobs, with the “younger” cohort of American workers still down 3.4 million jobs since December 2007.
Finally, for a snapshot look at the graying of the US economy, look no further than the chart of job gains only for those 55 and over: at 34,459,000, the number of elderly workers has never been higher and continues to rise at a torrid pace.