Fewer older Americans are working. Here’s one likely reason

Older Americans make up an ever-larger share of the workforce, a trend that dates to the 1990s.

Over the past few years, however, the employment rate among older Americans has been falling.

Or “collapsing,” as one report puts it.

The share of Americans ages 55 and over participating in the labor force dropped from 39.2% in February 2022 to 36.9% in July 2026, according to data from the federal Bureau of Labor Statistics.

In a brief Aug. 11 note, economists from Bank of America theorized that older Americans are retiring en masse because of a booming stock market.

“Labor force participation is collapsing among older workers,” the economists wrote. “We think the strength of the equity market is partly to blame.”

The value of the S&P 500 has more than tripled since its low ebb in the 2020 COVID-19 downturn.

“I personally see more people with a million dollars in their 401(k) than I ever have,” said James Cox, managing partner for Harris Financial Group. “And these are psychologically important numbers to make somebody let go of their paycheck.”

The employment rate among Americans ages 55 and older rose steadily from the 1990s into the 2010s. It dipped dramatically during…

Original source: https://www.usatoday.com/money/