It is very strange the way the whole world seems to be having exactly the same problems at the moment. There’s the pandemic obviously, but also, all countries seem to be struggling with inflation, shortages of various items, supply chain issues and staff shortages. Inflation is easy to explain; quantitative easing always causes inflation and many countries have printed money to fund their pandemic response. Supply chain issues are caused by factory shutdowns in many parts of the world due to COVID… not to mention the Chinese hoarding shipping containers at one point. Shortages are often explained by panic buying; a sure sign that there is a new case of COVID in Australia is queues of people buying up toilet paper. But skill shortages? Lack of staff? Where does that come from?
New Zealand, a country based on immigration, often has skill shortages and closed borders have exacerbated that problem. OK, so people cannot come in, but they cannot leave either and borders here have always been revolving doors. But what about Australia? Britain? The USA? Sure, all of these countries rely on immigrants to some extent, but if the immigrants aren’t coming in and the locals are not leaving… how come we have such a severe shortage of skilled workers?
The answer is something that has made me laugh almost until I cried, and it is something I had not considered until now. We have a habit of laying the blame for everything – house prices, inflation, a lack of housing, the weather, global warming and a plague of rats – on Boomers. Well, Boomers just got the last laugh. They are retiring, and leaving behind them the terrible skill shortages that we are seeing now… not just here, but everywhere.
We’ve heard a lot about the “Great Resignation,” the trend of people quitting their jobs to pursue better-paying and more meaningful opportunities. We’re now seeing the “Great Retirement,” a silver tsunami of Baby Boomers leaving the workforce.
During the bleak early days of the pandemic, in the third quarter of 2020, nearly 30 million Baby Boomers left the job market and retired, according to the Pew Research Center. The study showed that Covid-19 heavily contributed to the rapid increase of Boomers—born between 1946 and 1964—being forced out of the labor market.
About a year later, the exodus accelerated. A recent survey from Coventry showed that over 75% of the respondents said they are planning to retire early. The effects of the pandemic made older people reflect on what is really important to them. A larger percentage have come to the realization that they’ll be happier and live a more fulfilling life by leaving their jobs.
Forbes
The article makes it sound as if Boomers have been forced out of the labour market but that is only partly true. Boomers are, of course, reaching retirement age in large numbers. The first Boomers, born in 1946, are now 75 years of age. Mid-range boomers, born in the mid-1950s are now reaching retirement age. Many are still working, but many have opted to retire, their hand being forced in part by the pandemic. Remember that we have all been told that people over the age of 65 are most at risk from COVID, no matter what their particular state of health. Many, who qualify for state pensions anyway, have decided to enjoy some quality of life and leave the workforce, allowing the following generations to pick up the mantle.
Trouble is, Boomers are leaving an enormous hole that cannot be filled. One Westport supplies firm has had to pull two of its former drivers out of retirement, dust them off and put them on the road again. Another contract driver that I know is having to pull his retired father into the business to help out. There are lots of examples of retired workers being pulled back into the workforce but not everyone wants to come back. Retirement is good if you can afford it; many Boomers are finally finding out that they can afford it and life is good.
Boomers are a hardworking lot and often have built up a decent nest egg for themselves and their families. While there is some evidence that, when the pandemic first hit, Boomers were pushed out of the workforce, that does not appear to be happening any more. In fact, the reverse seems to be true. But whatever happens in the next few years, it seems to me that Boomers are, inadvertently, taking the revenge they deserve. How does Chlöe Swarbrick, MP for Auckland Central and famous for her “OK Boomer” quip in parliament (to Todd Muller who, as it turns out, is not old enough to be a Boomer), manage with a serious shortage of bus and truck drivers in our biggest city? Sure, she is not directly responsible for that, but it is causing serious disruption in her constituency nonetheless – something she cannot ignore. Game, set and match to the Boomers. They were, and are, too big to lose.