Live Long And Prosper!

American consumers are doing what they do best: They are consuming goods and services. Their consumption of services has been especially strong. So the demand for workers by several major services industries has been particularly strong. In turn, robust employment gains have boosted consumers’ purchasing power and spending. 

We have attributed some of these developments to the retiring Baby Boomer generation. This cohort is the richest generation of senior citizens in the history of the United States. The oldest of them turned 65 years old during 2011 (chart). Since the start of that year through March of this year, the population and labor force of seniors (65 years old and older) increased 20.0 million and 15.2 million. The number not in the labor force rose 4.8 million over that period to a record 47.7 million.