An Unemployment Crisis for Older or Younger Workers?

From RealClearMarkets.com:

Diana Furchtgott-Roth writing about her testimony before the Senate Special Committee on Aging:

Workers in their fifties are at their peak earnings, and there are fewer openings at these levels than entry-level positions....

It's important to examine unemployment among older Americans because of the aging of the workforce, which is accelerating now that the Baby Boomers are approaching retirement. On average, older workers can expect to live until their mid-80s, and dropping out of the labor force at 55 could mean 30 years of retirement. Not many have saved for 30 years of retirement. One implication is that a larger older population is supported by a smaller younger population, the essential problem going forward with Social Security.

But despite the narrow focus of the Senate Special Committee on Aging (note that the House has no such panel), the unemployment problem is not age-limited. It is general, and worrisome for all ages....

In fact, the problems facing older workers are not dissimilar from the problems facing all other workers, the lack of robust job growth. America needs policies that will contribute to stronger job growth broadly, policies that will benefit all....

Tougher regulations lead employers to locate elsewhere. Friendlier regulations draw them back home.

Already, it is easier to employ workers overseas than in the United States. The Wall Street Journal reported on April 27 that three-quarters of new jobs created by U.S. multinationals were offshore over the past two years.

The larger reality is that this administration's policies have failed across the board and resulted in a serious deficit of job opportunities for all workers. The problem will not be solved by special policies that favor one group over another.

The GAO report advocates shifting some jobs to older workers but at the expense of younger workers. This sort of redistributionist policy is both unfair and unwise. It amounts to intergenerational class warfare. What we need are policies that broadly create more job opportunities for all.

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Link:http://www.realclearmarkets.com/articles/2012/05/17/an_unemployment_crisis_for_older_or_younger_workers_99672.html