Why 10 Million Men Have "Given Up" on Work...
Summary
TLDRThe 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
📉 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.
👨💼 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.
🎓 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.
Mindmap
Keywords
💡Labor Force Participation
💡Labor Force Dropouts
💡Men Without Work
💡Wage Disparity
💡Social Identity and Work
💡Underground Economy
💡Opioid Epidemic
💡Skill Shortage Myth
💡Disability Payments
💡Leisure Time and Screen Use
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
this week's video is sponsored by brilliant brilliant is an Interactive Learning platform
that turns complex topics into engaging and easy to understand lessons whether you're interested in
math data analysis programming or AI brilliant helps you master The material through Hands-On
problem solving one of their latest offerings is the introduction to probability course this
course dives into the fundamentals of probability teaching you how to make informed Decisions by
analyzing real world data it's perfect for anyone learning to enhance their critical thinking and
data interpretation skills I've personally found this course invaluable it breaks down challenging
Concepts into bite-sized lessons making it easy to follow and apply in everyday situations plus
learning through interactive exercises is so much more effective than traditional methods
what I love about brilliant is how seamlessly it fits into your daily routine you can learn
in just a few minutes a day on your computer smartphone or tablet making it incredibly
convenient no matter how busy your schedule is to try everything brilliant has to offer including
their introduction to probability course for free for a full 30 days visit brilliant.org how money
works or click the link in the description you'll also get 20% off your annual premium subscription
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
5.0 / 5 (0 votes)