Why 10 Million Men Have "Given Up" on Work...

Summary

The video discusses the growing trend of American men, particularly those aged 25-55, dropping out of the workforce. It explores the causes behind this, including declining wages for non-college-educated men, increased female workforce participation, and societal shifts. Men without jobs often spend their time on leisure activities and live off government programs or family support. The video also examines the economic and social implications of this trend, highlighting how it's worsening labor shortages in key industries, while also questioning the sustainability of current welfare systems.

Takeaways

• 📉 The U.S. has seen a long-term rise in men dropping out of the labor force, with over 10 million people, mostly men, not working, studying, or seeking employment.
• 🚹 Men aged 25-55, typically in the prime of their careers, are the fastest-growing group leaving the workforce.
• 👩‍🎓 Women are entering the workforce and earning degrees at higher rates than men, but the dropout trend among men goes beyond just a gender role shift.
• 📊 Lower earnings potential for men without a college degree is a significant factor behind labor force dropout, as the income gap between college-educated and non-college-educated men has widened.
• 💰 Many labor force dropouts are surviving on a combination of government programs, family support, and informal work in the underground economy.
• 🛑 The majority of these non-working men spend their time in leisure activities, particularly behind screens, rather than household or civic duties.
• 🏠 Men without jobs are less likely to have children or a partner, and family responsibilities typically motivate people to stay in the workforce.
• 📈 Despite a large number of people not working, there are still labor shortages in key industries, highlighting a mismatch between job availability and labor force participation.
• ⚠️ Broader societal issues like the opioid crisis and the myth of a 'skills shortage' have exacerbated the problem of workforce dropout.
• 💻 Technology has made it easier for people to isolate themselves and avoid seeking work, further contributing to the growing trend of people opting out of the labor market.

Q & A

What is the primary trend discussed in the script?

The script discusses the trend of men aged 25-55 dropping out of the labor force, not working, studying, retiring, or seeking work, and how this trend has been accelerating over the decades.

What role did the COVID-19 pandemic play in this trend?

COVID-19 accelerated the trend of men leaving the workforce, but the pattern of declining labor participation has been ongoing since the 1960s.

Why are men between the ages of 25 and 55 increasingly leaving the workforce?

The reasons include lower earning power among non-college educated men, societal shifts with more women entering the workforce, and some men choosing non-traditional roles like stay-at-home spouses. Additionally, some avoid low-paying, unglamorous jobs and prefer relying on government benefits or family support.

How has the labor force participation rate in Mississippi compared to the national average?

In October, Mississippi's labor force participation rate was 54%, significantly lower than the national rate of over 62%.

Why do lower-income men tend to drop out of the labor force more frequently than higher-income individuals?

Lower-income men have less to lose from leaving the workforce. Many unskilled jobs offer little financial security or prospects for advancement, which makes these men more likely to drop out.

How does the gap between college-educated and non-college educated men impact labor force participation?

The gap in earnings between college-educated and non-college educated men has widened significantly, pushing more non-college educated men out of the workforce because they cannot achieve a comfortable lifestyle with the jobs available to them.

What does the research suggest about how men out of the workforce spend their time?

According to research, men who have dropped out of the labor force spend much of their time engaging in leisure activities, particularly behind screens, rather than household or civic activities.

What factors prevent people who have left the workforce from returning?

Factors include the increasing competition for prestigious jobs, stagnant wages for basic jobs, rising living costs, technology that enables social isolation, and broader issues like the opioid epidemic.

What role does disability insurance play in supporting individuals who have left the labor force?

Disability insurance has become more accessible and has outpaced other government programs, allowing people to receive support without actively looking for work. This has contributed to the trend of men leaving the workforce.

What is the 'skill shortage myth' mentioned in the script?

The 'skill shortage myth' refers to the false narrative that there are millions of unfilled jobs due to a lack of skilled workers. In reality, this narrative has contributed to a misalignment between job availability and labor force participation.

Outlines

00:00

📉 The Rise of Unemployment and Its Long-lasting Effects

Four years ago, the world experienced a historic spike in unemployment, which is often overlooked in today's fast-paced news cycle. However, the long-term impact remains. Over 10 million people in America, predominantly men, are currently neither working, studying, retired, nor institutionalized, just living without a purpose. While the COVID-19 pandemic accelerated this trend, it has been in motion for decades, with a small but consistent portion of men abandoning the workforce permanently. This paragraph explores why so many have dropped out of the labor force and how they are surviving in today’s economy.

05:02

👨‍💼 The New Face of Labor Force Dropouts

Several factors contribute to people not participating in the labor force, including retirement, illness, or family responsibilities. Yet, there’s a new, fast-growing group of men aged 25-55 who have given up on work altogether. While more women have entered the workforce in recent decades, some men have taken on domestic roles. However, this is not the full story. The paragraph discusses the growing number of men abandoning traditional employment roles, with societal and economic shifts pushing many to reassess their place in the workforce.

10:04

🎓 The Educational Divide in Workforce Participation

Research shows that non-college-educated men are increasingly dropping out of the labor force, as their earnings potential significantly lags behind those with a degree. The gap between college-educated and non-college-educated workers has widened, leading to higher dropout rates among those earning less. Surprisingly, those with lower incomes are more likely to give up on work, possibly because their limited earnings offer less incentive to stay employed, especially in low-paying jobs. This paragraph delves into why lower-income men are disproportionately affected by this trend.

📉 The Decline of Motivation in Low-wage Jobs

The difficulty of surviving on minimum-wage jobs has caused many men to reconsider their place in the labor force. Given the choice between low-paying, unglamorous jobs with little room for advancement or surviving on government programs and family support, many opt for the latter. The societal stigma around low-wage jobs and the increasingly unappealing nature of such work have contributed to the labor force dropout trend. This paragraph questions how many people would choose low-wage jobs if given alternatives and hints at the value of work in contemporary society.

💼 The Misalignment of Jobs and Worker Expectations

The stigma surrounding low-wage work plays a significant role in why many people choose not to reenter the labor force. Those out of work often avoid jobs they perceive as beneath them, and this reluctance exacerbates worker shortages in key industries. Despite job vacancies, the growing disconnect between available jobs and the perceived dignity of work pushes more individuals to opt out of the workforce entirely. This segment suggests that addressing the perception of these jobs is key to reversing the labor force dropout trend.

📊 Surviving Without Employment in America

A significant number of labor force dropouts live basic, minimalistic lifestyles. Eberstadt's research reveals that men not in the labor force spend most of their time on leisure activities, often behind screens, and contribute little to household responsibilities or civic activities. Despite their increased free time, they are not stay-at-home partners either. This part of the video also discusses why many of these men don't have families, as the financial burden of supporting children or a partner may be too high for those without stable income.

🏠 Government Assistance and Survival Mechanisms

Government assistance for those out of work in America is limited, with most benefits requiring recipients to actively seek employment. However, disability payments, which do not require job hunting, have become easier to obtain. This paragraph highlights the challenges of qualifying for welfare in the U.S., as well as the rise in disability claims. It suggests that many men may be surviving through informal, cash-based jobs in the underground economy, contributing to U.S. GDP while remaining outside the official workforce.

📉 The Role of the Underground Economy

A portion of labor force dropouts may be working informally in the underground economy, contributing to an estimated 12% of U.S. GDP. These activities range from cash jobs that avoid taxes and labor regulations to illegal operations such as drug dealing and theft. While some research paints these men as burdens on society, the complexity of their situations is acknowledged. This paragraph argues that, despite the harsh portrayal, many of these men are not aimless but trapped in a cycle that makes returning to traditional work difficult.

🔎 Why More People Are Dropping Out of the Workforce

There are numerous factors driving the growing trend of labor force dropouts. The fierce competition for good jobs, stagnant pay for low-wage positions, technological isolation, and broader societal issues like the opioid epidemic all contribute. Additionally, the myth of a 'skills shortage' has left millions jobless, despite millions of unfilled positions. This paragraph emphasizes that while no single reason explains the trend, the combination of economic and social forces is pushing more people to abandon the traditional career path.

Keywords

💡Labor Force Participation

Labor force participation refers to the percentage of people who are either employed or actively looking for work. In the video, it's highlighted as a key metric to understand why many Americans, particularly men, have dropped out of the labor force. Mississippi's labor force participation rate being lower than the national average is used to illustrate this trend.

💡Labor Force Dropouts

Labor force dropouts are individuals who are not working, not looking for work, and not participating in education or retirement. The video discusses a growing trend of men between 25-55 dropping out of the workforce, often due to a lack of economic opportunities or dissatisfaction with available job prospects.

💡Men Without Work

'Men Without Work' is a book by Nicholas Eberstadt, referenced in the video, which tracks the trend of prime-age men leaving the workforce. This concept is central to the video’s theme of understanding why men are increasingly choosing not to work and how this affects society and the economy.

💡Wage Disparity

Wage disparity refers to the difference in income between individuals with different education levels. The video emphasizes that non-college-educated men are increasingly dropping out of work because their earning potential is significantly lower than their college-educated peers. This widening gap plays a crucial role in labor force disengagement.

💡Social Identity and Work

The concept of social identity and work highlights how individuals tie their self-worth and status to their jobs. The video suggests that many men are dropping out of the workforce because they are unwilling to take jobs they perceive as beneath them, which can negatively affect their social identity and self-esteem.

💡Underground Economy

The underground economy refers to informal or illegal work that is not reported to the government. Some of the men who have dropped out of the labor force may still be working in this hidden economy, engaging in cash jobs or illicit activities. This complicates the picture of who is truly 'unemployed' or 'out of work.'

💡Opioid Epidemic

The opioid epidemic is referenced as a social issue that has contributed to the trend of men leaving the workforce. Addiction and related health issues can prevent individuals from maintaining stable employment, exacerbating labor force dropout rates.

💡Skill Shortage Myth

The 'skill shortage myth' refers to the idea that there is a shortage of workers with the necessary skills for available jobs, which the video argues has been used to undermine traditional career paths. This myth has contributed to a mismatch in the labor market, where jobs remain unfilled while workers drop out of the workforce.

💡Disability Payments

Disability payments are financial support provided to individuals who are unable to work due to health issues. The video points out that it has become easier for people to qualify for disability benefits, which may contribute to the trend of people leaving the workforce without actively seeking employment.

💡Leisure Time and Screen Use

Leisure time and screen use refer to how labor force dropouts spend their days. According to the research cited in the video, many men who are not working spend most of their time engaging in leisure activities, particularly screen-based entertainment like video games, rather than contributing to household duties or civic activities.

Highlights

America experienced its most intense spike in unemployment four years ago, which is now seen as ancient history in today's news cycle.

Over 10 million people in America, mostly men, are not working, studying, retired, or institutionalized—they are simply doing nothing.

This trend of men giving up on work has been accelerating since the 1960s, with around 0.1% of men leaving the workforce permanently every month.

The labor force participation rate in Mississippi was nearly 54% in October, significantly lower than the national rate of over 62%.

Men between the ages of 25 and 55, typically in the prime of their careers, are increasingly dropping out of the labor force.

Women have been entering the workforce at a fast pace, with young women earning more than young men in most major cities in America.

Many men are rejecting service jobs, finding them beneath their social status, contributing to a rise in labor force dropout rates.

College-educated workers earn more than non-college educated workers, with the gap widening significantly, especially for men.

Many non-working men spend most of their time behind screens, contributing little to household care or civic activities.

Labor force dropouts are less likely to have children or partners, as family life is expensive and creates motivation to work.

Eberstadt's research suggests that many non-working men live basic lives, supported by family or government programs, but contribute little to society.

The underground economy, including informal and illegal work, plays a significant role in how many of these men survive without formal employment.

The rise of disability payments, which do not require active job-seeking, has become one of the fastest-growing government assistance programs.

The misconception of a skills shortage has contributed to millions of unfilled jobs, despite high unemployment and labor force dropout rates.

Social isolation, economic pressures, and the opioid epidemic are broader societal issues exacerbating the trend of men leaving the workforce.

Transcripts

four years ago America and the rest of the world  saw its most intense spike in unemployment in  

recorded history in today's news cycle that  is ancient history but what isn't ignored is  

what has been left behind there are now over  10 million people mostly men in America who  

are not working not studying not retired and not  institutionalized they are just doing nothing Co  

accelerated this trend but it's been going on for  decades since the 1960s about 0.1% of American men  

have given up on work to never come back every  single month so why are so many people giving up  

so consistently and more importantly how are  these people surviving without a job in this  

economy in October Mississippi's labor force  participation rate was nearly 54% while the  

national rate was over 62% how many jobs on  these two websites it's been over a thousand  

combined they're not working and they're not  looking for a job and those are the folks who  

we have to get into the labor market why aren't  some Americans getting back to work work it's  

the million dollar question there are a lot of  reasons why someone might not participate in the  

labor force they might have retired they might  be still studying for qualifications there might  

be people who are too sick to work stay-at-home  spouses members of the military who are clearly  

working but don't officially count as part of  the labor force and then of course there are  

just really rich people who don't need to work to  maintain their lifestyle these groups have always  

existed but there is a new group growing alongside  them which are people who have just given up the  

fastest growing group group of these labor force  dropouts have been men between the ages of 25 and  

55 men in this age range would typically be in  the prime of their careers but more and more of  

them are not working at all now some of this  can simply be explained by the fact that more  

women have entered the workforce in fact up until  2008 women were entering the workforce almost as  

quickly as men were leaving it some men just took  on domestic roles as stay-at-home husbands while  

their wives or Partners focus on their careers  instead according to Pew research young women  

are now earning significantly more than young men  in most major cities in America young women are  

also graduating college at higher rates than men  so it makes sense that a growing group of men are  

tossing aside typical gender roles and doing work  that doesn't get counted as typical employment  

If This Were the whole story there would be  absolutely nothing wrong with this but let's  

be honest having a stay-at-home parent no matter  what gender they are is a luxury that most people  

simply cannot afford in the Modern Age especially  young people who are the fastest growing group of  

labor force dropouts there is something more  going on here Nicholas erstad is a political  

Economist who published The Book Men Without work  which tracked the trend of working AE men simply  

giving up on work and largely removing themselves  from society in the process his book which was  

first published in 2016 lines up perfectly with a  2022 study on the issue conducted by the Federal  

Reserve Bank of Boston which found that men  without a college degree in particular were  

dropping out of work because their earnings power  was significantly lower than their peers who did  

have a 4-year degree That's Not Unusual because  college educated people should expect to earn  

more than non-college educated workers on average  but the finding found that the gap between the two  

groups had widened significantly especially  amongst college educated versus non-college  

educated men now this was particularly surprising  to the researchers because it would actually make  

more sense that higher income workers would  drop out of the labor force because if they are  

earning a lot of money they have a better chance  of marrying a higher earning spouse or just saving  

up more money for an early retirement instead  they found the opposite the group that earned  

less were more likely to drop out of work and yes  before you ask the study did account for the fact  

that people not working won't be making an income  so they would automatically be in the non-working  

low income group now since men are now over  represented in non-college graduates they were  

the largest group of people giving up on work but  even though it's tempting to make this an entirely  

gender specific issue and to be honest it would  make for a more engaging YouTube video there are  

some forces at play here the reason that people  with lower incomes were dropping out was simply  

because they had less to lose and more to gain  most unskilled jobs cannot buy you a comfortable  

lifestyle basically anywhere in America anymore  and as more people tie their identity and social  

status to their work and income it's become much  harder to accept unglamorous service positions  

if you were given two options honestly consider  which one you would choose you could scrape by  

by working a few minimum wage jobs where you are  on your feet dealing with customers and managers  

all day a job where you are unlikely to advance  too far without a degree and you won't have much  

time or energy left at the end of the day to  pursue side projects you might also be working  

a job that you aren't exactly proud to share  with your friends family or romantic interests  

the other option is that you could scrape by on  whatever government programs or family support  

you could find maybe work on some side projects  in your spare time or just fill your day with low  

cost Recreation like playing video games I would  like to think I appreciate the value of a hard  

day's work but I have always had the luxury of a  prestigious career and successful business given  

these specific options how would you choose to  spend your day if you are brave enough go ahead  

and share it in the comments below so people  on the internet can call you a bootlicker or  

a lazy Zoomer respectively now the second option  also has the advantage that if someone asks you  

what you do for work you can just tell them that  you are working on a new business or taking some  

time off the FED study found that this was one  of the biggest reasons people didn't want to  

take on jobs that they thought were beneath them  now no matter what side of the fence you are on  

this issue affects us all these millions of people  are out of work at the same time as we have major  

issues with worker shortages in our most important  industries and this trend is only going to get  

worse unless something changes so it's time to  learn how money Works to find out how these people  

are surviving without work and what it means for  the rest of the workforce if they never come back  

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apart from a few early retirees that made a lot  of money at a young age most of the people who  

are not working and are not looking for work are  living extremely basic lives eberstadt's research  

went beyond the broader demographic studies and  focused a lot on trying to figure out what these  

people were actually doing with their time now  the next few minutes are going to contain some  

hard to swallow pills and even though ever stat  is sometimes a bit direct with the way he lays  

out the facts his research and his recommendations  addressed some of the most important issues in our  

society he found through National surveys that the  average man not in work or looking for work was  

basically doing what you might expect they were  sitting at home spending a majority of time behind  

a screen most of them contribute very little  to looking after other members of a household  

and they were underrepresented in other Civic  activities like volunteering even though they  

had more free time than their peers who worked  or studied he also poked TOS in the idea that  

a lot of these men had just become stay-at-home  spouses taking care of chores to support their  

working partner a role that was in the past  typically performed by women unfortunately a  

according to the federal survey data he collated  the average labor force Dropout spent an equal  

amount of time on household care as the average  employed woman and 5 minutes less per day than the  

average unemployed Man Who Would theoretically be  spending at least some of their time looking for  

a new job what they were spending their time on  was leisure activities and sleeping the average  

person who had dropped out of the labor force was  also far less likely to have children or a partner  

and eat theorized that there were two reasons  for this the first reason was that children  

dating and a family life are expensive commitments  that people trying to get by without a job just  

simply wouldn't be able to afford the second  reason was that people with a family to support  

were inherently more motivated to go out and  provide even if it meant working a job that a  

single person wouldn't of course this is a large  sample size and there are plenty of people with  

children who don't work and plenty of couples  totally outside of the labor force as well but  

even without these typical responsibilities daily  life is still very expensive government benefits  

for people out of of work typically only extend  to those people who are either actively seeking  

work or cannot work because of an illness or  disability the exact makeup of these assistance  

programs vary state to state and of course  outside of America different countries have  

different levels of social welfare but America  is where this trend has been most pronounced and  

it's also where a bulk of the research on this  trend has been done so as anybody who has ever  

tried to apply for government welfare in America  will tell you the burden of proof to qualify for  

these payments can be exceptionally high with the  only real exception being co era stimulus where  

arguably the burden of proof for payments was too  low saying you need unemployment payments because  

you would prefer to stay at home all day vaping  and playing fortnite isn't going to fly with Uncle  

Sam what ever stat did find though was that it  had become much easier for people to qualify for  

disability payments which in most circumstances do  not require recipients to be actively looking for  

work to maintain their payments in his own book he  highlights how difficult it was to find consistent  

data on all of the government programs that  might be available to these people and of course  

needlessly pointing the finger at assistance to  some of society's most vulnerable people is not  

the point here what is though is that according to  data from the Department of Social Security annual  

disability insurance payments have outpaced all  other major programs they provide the data as a  

table but here is a nice visual line chart Dr  Dwight R Le an economist also proposed that a  

major element that eat overlooked was that a lot  of these men were working they were just doing it  

in the underground economy which was estimated to  be contributing about2 trillion or about 12% of US  

GDP this could include these people doing anything  from working in formal cash jobs to skirt tax and  

minimum wage laws to outright illegal operations  like shoplifting or selling drugs so the work of  

these researchers paints an image of this growing  group of individuals mooching off friends family  

and the government while wasting their days away  playing video games are being an overall burden  

on society it's not exactly flattering but  to be fair there are certainly people living  

these lives and with Nationwide or even Global  demographic trends like this broad Strokes need  

to be made the researchers studying this trend are  actually highly sympathetic to the situation of  

these people and they seem motivated to actually  fix the cause of these problems I will of course  

be leaving a link to the full book in the video  description if you want to read it yourself as  

well as some great interviews these men have done  that lets them articulate their Grim feelings in  

a way that's a bit more human the reality is  that I can personally see if just a few things  

went differently in my own life I could have  easily fallen into the same comfortable trap  

most of you watching could have too whether you  realize it or not but this still doesn't answer  

the most important question why is this becoming  more common most people if given a choice would  

prefer a nice stable job with an income that could  provide a standard of living beyond basic survival  

but yet more and more people are dropping out  of even trying to look for a job every single  

year there is unfortunately no single answer  as to why people are giving up but there are  

some contributing factors firstly competition for  good prestigious jobs have become far more Fierce  

while pay for basic jobs has not kept up with  living costs technology has made it much easier  

to isolate oneself from the rest of the world and  there are other broader social issues like the  

opioid epidemic that at the very least have not  helped this trend one of the most damaging factors  

has been the Insidious myth of the skill shortage  which has led to an economy where millions of  

people don't have a job but there are millions  of jobs that don't have people to fill them I am  

going to be writing an article about how the idea  of a skill shortage has been used to undermine the  

traditional career path of millions of Americans  over on my free email newsletter Linked In the  

video description something like the rise and  fall of the tech bro is a clear demonstration  

that even the most talented and driven workers  have less control over the careers than they might  

like to admit so if you like this video check out  that one next to keep on learning how money works