What’s going on:
Analysis of Census Bureau data conducted by the Pew Research Center indicates an unsettling trend – millions of young men are exiting the workforce at a growing rate. As of now, only 71% of 25-year-old men hold full-time jobs, a decrease from 85% in 1980, according to Money Wise. This implies that a young man today is 16% less likely to be in full-time employment than his father or uncles were at his age.
Why it matters:
Several factors contribute to this employment drop, including the post-pandemic economy, lack of four-year college degrees, declining real earnings, and health issues. Men without college degrees are reportedly less attracted to the labor force, as real earnings have dipped by 30% since the 1980s, according to Money Wise. Also, men are increasingly affected by poor mental and physical health, limiting their labor force participation. The resulting decrease in workforce participation poses a significant threat to the labor force in the country.
How it’ll impact the future:
The declining participation of young men in the workforce could have several impacts on the future of work. Fewer young men in the labor market reduces the country’s overall tax base and increases demand for government aid, potentially affecting national debt and fiscal deficit.
Businesses might also adjust attraction and retention strategies and reevaluate the value placed on four-year college degrees. The trend could significantly reshape the societal structure and the perception of traditional roles in the workforce.