The Laziest Generation in American History
In early 2021, employees began voluntarily resigning from their jobs, en masse. This surprising trend has been labeled The Great Resignation.
This trend has alarmed employers, talking heads and economists as they struggle to make sense of the mass exodus from the workplace. What could possibly be causing this?
As you might imagine, part of the blame for this lies at the feet of Covid-19. We had all been operating a warp speed. Then everything just stopped. And, the sudden slow down gave many folks an opportunity to pause and reflect. It allowed workers to reimagine their careers, their stress level, and their long-term goals. Many found the unexpected down-time to be eye-opening. Workers finally got to see exactly what they were missing in life. Turns out they were missing a lot. In November, a record 4.5 million workers quit or changed roles. That follows 4.4 million in October. It’s a dumpster fire for employers.
These resignations exasperate an already dismal labor market. The civilian labor force participation rate is the number of employed and unemployed (but looking for a job) as a percentage of the population aged 16 years and over. In December 2021, the Labor Force Participation Rate was 61.9%. That’s still 1.5 points below pre-pandemic levels according to the U.S. Bureau of Labor Statistics. That means 38% of those able to work choose not to, even with the proliferation of vaccines and wide availability of jobs.
With fewer workers to fill openings, companies have to increase compensation to compete. That causes the price of good and services to go up. Economists call this a wage-price spiral. It’s one of the reasons why things are getting so expensive right now.
Over the past few decades, the United States has seen a precipitous drop in the labor force participation rate. Surprisingly, this trend is most pronounced for young men ages 20–24. The labor participation rate for this group has fallen by almost 10% between 1996–2016. That’s a larger reduction in hours than any older age demographic, male or female. At this point only 73% of those age 20–24 are even trying to find work. Russian economists refer to this as a demographic drought. That is, there simply is not enough available labor in the United States to meet the supply. But, why is there such demand for labor today? Part of the answer is, of course, Covid. In 2020, US economists predicted that approximately 2M baby boomers would retire from the active workforce. Instead, the Covid virus accelerated the baby boomer retirements in excess of 3M people. That’s an extra 1M retirements in a 12 month period, at a time when the economy was booming. And, because of a drop in the US fertility rate in the 1970’s, there simply aren’t enough Gen X’ers and millennials to fill the void. Experts predict that by 2028 there will be a deficit of 6 million workers. And, that’s before contemplating the impact of The Great Resignation.
Finding a good paying job is typically a high priority for 20 year olds. So what is causing the decline in the desire for work? Some suggest it’s a lack of marketable skills and training. It could also be the migration of many entry level jobs to India and Puerto Rico, so-called offshoring. One expert suggests it’s something totally different. In 1996 California shocked the world by legalizing certain forms of Marijuana. By 2019, 30 states had legalized the use of marijuana. That legalization has created a tremendous supply of THC products that often find their way into non-legal states-and every hunting and fishing trip I go on.
A recent study by the University of British Columbia confirms what many suspect. The use of Marijuana contributes to a condition known as amotivational syndrome. That’s a fancy way of saying that weed makes you lazy.
The major decline in the motivation of the 20–24 age cohort occurred in the years following 2004. Not coincidentally, 2004 saw many blockbuster sequels and prequels in the video video game industry. These include Doom 3, Gran Turisimo 4, Grand Theft Auto and Halo 2. Economist Edward Castranova opines that “we are witnessing what amounts to no less than a mass exodus to virtual worlds and online game environments”. And, it isn’t just in the US. In Hong Kong, the average male spends 113 minutes a day playing video games.
In 2015, 14.3% of all men ages 21–30 went the entire year without a single hour of work or compensation. And, 70% of lower skilled men without jobs live with a parent or close relative. They squat on relatives Netflix, WiFi and Spotify accounts and become digital parasites.
An academic study from the University of Rochester confirms that since 2004, data shows that young men shifted leisure time to video gaming and recreational computer activities. And, that the attractiveness of gaming is directly correlated to the innovations in computing power and in the sophistication of the games themselves.
But, historically, access to media (music, movies, video games) was limited by our access to money. Growing up, I stayed at the arcade playing Galaga, Asteroids, Defender and Centipede only until I ran out of quarters.
Today, our media is mostly all-you-can-eat. Netflix offers an unlimited supply of movies and shows. And, video games are all inclusive. Once you purchase the game there is no limit on the number of gaming hours. Same goes for music. So there are no financial speed bumps for the Tic-Tok generation. Everything is all you can eat. They embrace a life of premium mediocrity.
So, who is trying to fill this employment gap? Males age 62–69 are returning to the workforce in droves. Their labor participation rate is roughly +10%. Same goes for females age 60–70. So the youngest Americans are refusing to work while the older DT Americans are returning to the workforce in numbers higher than any other demo.
So what about you? Do you find these statistics surprising? Or do you have a young parasite living in you basement, eating your food and milking off your wi-fi, Netflix and Uber accounts. If so, I’d like to hear about it. Maybe it’s time for some tough love before you find yourself returning to the workforce when you should be enjoying the fruits of your own labor.
I’d like to hear from you. Please leave a comment below. I’m not famous enough to ignore my reader’s emails yet, so you’ll hear back from me.
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