A booming economy
The stock market is up. Employment is up. It’s been 110 days since we have seen the S&P 500 decline by one percent or more during one day’s session. This is a booming economy.
Employed Americans are quitting their jobs like crazy in another sign that under President Donald Trump, confidence across the U.S. economy is rising.
In January, the number of Americans quitting their jobs rose to a seasonally-adjusted total of 3.22 million, the highest number since February 2001. The quits rate rose in January to 2.2%.
People quitting their jobs in droves is seen as a sign of confidence among workers, as folks are unlikely to quit a job unless they are confident they can get another one.
A new high in job quitters comes amid a flurry of data in the past week showing confidence in the U.S. economy continues to be strong.
While quitting your job shows a level of confidence, either in your ability to secure other work or perhaps to establish your own company. Either way, before you quit your job, remember that a growing number of older Americans are unemployed. Eventually you too can be marginalized. The money that you are earning today might not continue into the future. Save as much as you can for you future.
The population is living longer
People are living longer. While your job prospects which might appear rosy today, things could change direction quickly. If you were suddenly 50 years old and couldn’t find work, would you be able to support yourself for another two, three, perhaps even five more decades? I know it may be far off in the future for those in their 20s and 30s, but saving money for your future is key.
And unemployment over 50 is a problem
According to research from Boston College, unemployed workers 55 and up are less likely to find new jobs than unemployed younger workers. Following the 2008-2009 recession, the average length of unemployment for those 55 and up was 40.6 weeks, compared to just 31.6 weeks for younger job searchers.
A 2012 study by the Urban Institute furthers this point: Despite their experience, workers in their 50s are 20% less likely to find new jobs than workers aged 25 to 34. While getting laid off is clearly never a good thing, it can be especially detrimental to older workers and their long-term financial health.
I am not suggesting that you stay at a job that you are not happy at. If there are better opportunities, go for them. Just understand that while you are trying to expand your career, you should also be saving for your future.
Image credit: Hendrik Wieduwilt