Over 3 million Americans were forced to retire earlier than scheduled because of the COVID-19 pandemic, according to an analysis conducted by the St. Louis Fed.
- St. Louis Fed Senior Economic Miguel Faria Castro found that there were over 3 million excess retirements as of August versus normal retirements.
- The excess retirements account for over half of the 5.25 million individuals who left the labor force since the pandemic started.
- Castro attributed the uptick on the retirees being more vulnerable to infection and death and the surge in the stock and housing markets.
- The economist noted that as people get richer, they work less and evidence points that the evolution of asset values influences the participation of the labor force.
- Castro said that should the excess retirees be permanent losses in the labor force, the amount of slack may be smaller than the 5.25 million.
- He noted, however, that there may be retirees who decide to return depending on factors and the prevailing market conditions.
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