Men are dropping out of the workforce
According to the data published by the International Labour Organization (ILO), recent years have been characterized by falling unemployment rates in the US, UK and much of Europe. While such figures illustrate a robust labour market, they can also mask other facets, including people who aren’t employed and aren’t looking for a job.
Among men, that inactivity rate is set to climb to 40% in Southern Europe by 2020, according to ILO projections, among the highest for any region in the world and outstripping the rate in the Group of 20 (G20) countries, where it is set to grow to around a quarter.
While some of the reasons for rising inactivity rates are positive – living longer, retiring earlier or staying in education for a prolonged period – the shift also brings some challenges, potentially reducing the proportion of people who are employed compared to those who aren’t.
Retirement was the most frequent reason cited by European men for being outside the labour market, according to Eurostat, while the second was illness or disability.
Sorting by age category shows the role played by demographics, with roughly 8% of men aged 25-54 in the European Union forecast to be inactive in 2020, on par with other high-income nations.
Among men aged 55-64, the EU rate is projected to be 31%, compared with 29% for Northern America and 26% for the G20.
All these factors point to higher labour dependency ratios and that in turn raises questions about whether people will want or need to work for longer and how resources are distributed. The median age of the labour force will be more than 40 in many parts of the world in 2020, ILO projections show, ranging from 31 years old in Niger and Afghanistan, to 48 in the US Virgin Islands and 47 in Japan.
Source: International Labour Organization (ILO) / Link: https://ilostat.ilo.org/2019/11/19/men-are-dropping-out-of-the-workforce-heres-where-the-numbers-are-highest/
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